Having an arbitrary amount of money on hand is not a smart way to plan for emergencies. Always stick with a safe money goal that is relevant to you and your situation.

Summary: Whether you’re on your own or supporting a family, it’s a good idea to have at least 6 months of emergency reserves around and even more for people who change jobs frequently. So how do you know how much safe money you really need and how does this amount change as you approach retirement? Other topics include: • How incorporating saves on FICA taxes, but limits your ability to save for retirement • • Are Roth IRA’s useful if you’re over the 15% tax bracket? • Self directed 401k vs. SEP I