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‘GET A PLAN IN PLACE’, Local financial advisor details coping with ongoing pandemic money woes

ROCHESTER, Minn. (KTTC) -- It's not an easy thing to watch a savings account dwindle right before your eyes due to a pandemic no one ever saw coming.

But those who have lost a job, or had their hours reduced, may have started dipping into their savings accounts to make ends meet.

Pulse Financial Planning Firm Founder Matt Elliott

However, there are things you can do to minimize its impact according to Pulse Financial Planning Firm Founder Matt Elliott.

"The main thing is getting a plan in place that makes sense for your situation," Elliott said.

Once you have a plan in place there certain accounts to hit first.

"The first source that anyone should really start to look to dip into is the emergency fund if you have one available," Elliott said. "If you could avoid taking money from your retirement account I would avoid that if possible."

If you don't have an emergency fund, or that fund you had is running out, there's another option.

Through a CARES Act you can now take money out of retirement funds without an added penalty if you're not 59 and-a-half years old, if you met the criteria.

The criteria includes being negatively impacted by the pandemic or contracting the virus.

"You can take money out of an IRA or 403B or 401K and not have to pay that 10% penalty that exists normally," Elliott said.

If you decide to take that route you will also have time to replenish that account.

"Over the next three years you can add that money back and not impact contribution limits and other things," Elliott said.

In the long run, whatever your situation may be there are ways to avoid future financial ruin.

"If we get a plan in place to replace that money so your not impacting your retirement goals too much," Elliott said.

Ubah Ali

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