#Morningstar #gigeconomy #saveforretirement
Find out what four steps you can take now to protect your financial future as a gig worker.
0:00 Balancing the gig economy trade-offs
0:14 Buy health insurance, contribute to HSA
0:32 Build your emergency fund
0:45 Fund a traditional IRA or a Roth IRA
0:55 Manage your portfolio conservatively
Host’s name: Carole Hodorowicz
Working in the gig economy might offer some perks like a flexible schedule and lucrative contract jobs.
However, there are some trade-offs that might create financial stress, like no employee-provided health insurance or retirement plans.
How can you bring some balance to those trade-offs? Here are some steps to take.
First...make sure you are covered. You will likely run into shorter-term financial bumps in the road. Morningstar’s Christine Benz says to line up adequate insurance coverage and consider contributing to a health savings account.
Second...have a safety net. Anything can happen. Be prepared for the unexpected with an emergency fund. Benz suggests trying to save up at least a year’s worth of living expenses.
Third...fund a traditional or Roth IRA. IRAs are easy to set up and have a variety of options. They make it easy to save for retirement.
Lastly...go your own pace. You are more likely to have irregular paychecks.
So, while your retirement savings can be invested like the savings of any other worker, consider managing your portfolio more conservatively just in case you need to tap into it unexpectedly.
Learn more about saving for retirement.
What’s the Difference between a 401(k) and Roth IRA?: [ Ссылка ]
How to Pick Funds for Your Retirement Savings: [ Ссылка ]
Save for Retirement: [ Ссылка ]
Retirement Planning for the ‘Gig’ Economy: [ Ссылка ]
A Retirement Readiness Checklist: [ Ссылка ]
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