The back-up plan

It's not sexy, but it can save your bacon. Get to know your emergency fund.

This article was originally published by USA Today in the fall 2011 issue of Men's Health Magazine.

By Katherine Reynolds Lewis

The emergency fund: it's that pile of cash that's just sitting there, ready for you to lose your job. The traditional advice is to save six to 12 months' living expenses.

How could you possibly save that much -- and why would you want to keep such a large chunk of change in an account earning 0.1 percent annual interest anyway?

Don't sweat it.

By rethinking the very nature of the emergency fund, you can piece together enough cash, safe investments, credit, and other resources to carry you through a job loss, illness, or other unexpected emergency.

And if you're not there yet: Read on, so that you'll know what to do when those paychecks get a little fatter. Read the entire article (page down after you click through).

7 Myths That Could Wreck Your Retirement Savings

This article was originally published by the Fiscal Times on Tuesday, July 19, 2011.

By Katherine Reynolds Lewis, The Fiscal Times

Despite the sluggish recovery, Americans are starting to feel a little better about their prospects. But that may not be good news for retirement savings. While the recession shocked us into boosting our near-zero savings levels, we’re already being less frugal.

After climbing to 7.2 percent in the second quarter of 2009, the U.S. savings rate dipped to 5.1 percent in the first quarter of this year, the lowest level since the financial meltdown, according to the Bureau of Economic Analysis. Meanwhile, the average 401(k) balance hit $74,900, according to Fidelity Investments. That’s only enough to cover about three years of retirement expenses.

Are you ready for retirement? Investment advisers like to trot out handy rules for savings plan. But some of this conventional wisdom makes it easy to slide off the thrifty path. Here are seven myths about retirement that can trip you up.

Myth No. 1: Max out your 401(k) contribution and you’re set.