Ann needs to have money available to pay an annual renters insurance premium of $224, ten months from now. She has savings of $0 in her current budget, a retirement fund of $4,833, and a reserve fund of $0. Which of the following would NOT be part of her reasonable plan to establish a reserve fund for this expense?

Question

Mathematics

Kaya Kerr

15 September, 20:18

Ann needs to have money available to pay an annual renters insurance premium of $224, ten months from now. She has savings of $0 in her current budget, a retirement fund of $4,833, and a reserve fund of $0. Which of the following would NOT be part of her reasonable plan to establish a reserve fund for this expense?

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Payton Hatfield · Answer 1

Ann should NOT touch her retirement fund to finance her annual renters insurance premium.

Retirement fund is set up for the purpose of enabling retirees to have funds to cover her most basic needs when she retires from work. Thus, in any day-to-day expenses, funds in the retirement funds should be disregarded.

Ann should find other means of earning funds to cover her annual renters insurance premium.