UTAH

Live Mic: Pandemic pushing people to pilfer retirement nest egg

Sep 18, 2020, 4:52 PM
retirement...
Photo: Getty Images

SALT LAKE CITY — Does the coronavirus pandemic have you looking for a loose change between the couch pillows?​ Shane Stewart, a certified financial planner, joined Live Mic with Lee Lonsberry Friday to discuss how some people are raiding their retirement savings during the COVID-19 pandemic. 

“What advice do you give to clients who are worried about their financial future, paying the bills and day-to-day finances?” Lee asked.

“We hope that someone has taken our advice well in advance and put away something for savings, something for an emergency,” Stewart said. “Unfortunately, many people don’t do that.”

He urged listeners to put something into savings with every paycheck because emergencies can happen to anyone.

For those laid off from their jobs because of the pandemic, Stewart advised prioritizing the expenses that could be cut — even if just temporarily.

“As a financial professional I can’t make that decision,” he said. “It’s personal. They’ve got to make that on their own. But they really have to cut back and find ways to make do.”

“It took me years and years and years to get over the pressure to buy stuff and go places and keep up with Mr. and Mrs. Jones,” Lee said. 

Cracking open retirement nest egg

Nearly three in 10 people have decreased the amount of money they’re setting aside for retirement during the pandemic. Some have stopped saving altogether due to the economic fallout of COVID-19, according to a FinanceBuzz survey published in August.

Stewart pointed out that U.S. government has allowed people to access their 401(k) without penalty for early withdrawal, and the taxes are spread out over the next three years.

 “I would make that a last resort because what you’re doing is stealing that money from your future self,” Stewart said. “The current self has the need — but future self has the need as well.”

He advised cutting back on expenses as much as possible or asking family or friends to help with finances.

Stewart said picking up a side job or gig always helps the bottom line — but he stressed the important of being mindful about spending.

“If people don’t also address their spending habits on the outflow side, it won’t matter what they make,” he said.

Live Mic with Lee Lonsberry can be heard weekdays from 12:30 p.m. to 3 p.m. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app.

Today’s Top Stories

Utah

Sister Tracy Y. Browning, second counselor in the Primary general presidency, speaks during the Sat...
Waverly Golden

Saturday morning conference session makes history

During the Saturday morning session of the 192nd Semiannual General Conference of The Church of Jesus Christ of Latter-day Saints, Sister Tracy Y. Browning became the first Black woman to ever speak at a general conference.
20 hours ago
Salt Lake County DA's office pictured, it just declined to call an incident an officer-involved cri...
Samantha Herrera

Salt Lake County DA says police chase that ended in a fatal crash was not an officer-involved critical incident

The DA's office found that a police chase turned crash did not meet the criteria for an officer-involved critical incident.
2 days ago
chronic wasting Utah...
Adam Small

DWR wants to test deer kills for chronic wasting disease

Though chronic wasting disease isn't prevalent in Utah animals, wildlife officials say they want to keep ahead of potential problems.
2 days ago
Sgt. Elvin L. Phillips pictured. He's a World War II soldier, his burial will be in Bluffdale....
Amie Schaeffer and Samantha Herrera

Fallen World War II solider identified 78 years after his death, burial planned in Bluffdale

Using DNA analysis, the Defense POW/MIA Accounting Agency was able to identify a World War II solider and he is now being returned home for burial.
2 days ago
pig poop power...
Elizabeth Weiler

Nations largest pig farm exposed, two face criminal charges

ST. GEORGE, Utah — A jury selection is underway after two activists filmed their theft of dying piglets from Utah’s Circle Four Farm in an attempt to save them.  Advocates are calling it a landmark case to establish the “Right to Rescue” animals in distress.  Animal rights activists Paul Darwin Picklesimer and a former Northwestern […]
2 days ago
Sprinkler watering lawn pictured. Drought water conservation made improvements this year....
Chris Jacobs

Water levels indicate that Utah’s water conservation efforts are working

The Division of Water Resources reported that drought conditions are lower than last year and water conservation has maintained consistent water levels.
2 days ago

Sponsored Articles

Young woman receiving laser treatment...
Form Derm Spa

How facial plastic surgery and skincare are joining forces

Facial plastic surgery is not only about looking good but about feeling good too. The medical team at Form Spa are trained to help you reach your aesthetic outcomes through surgery and through skincare and dermatology, too.
large group of friends tohether in a park having fun...
BYU MBA at the Marriott School of Business

What differentiates BYU’s MBA program from other MBA programs

Commitment to service is at the heart of BYU’s MBA program, which makes it stand out among other MBA programs across the country.
a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Live Mic: Pandemic pushing people to pilfer retirement nest egg