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Elizabeth needs an adequate emergency savings cushion and needs to boost her retirement savings. But one thing she can take care of right now is to reallocate her

401(k) money into one diversified fund

She currently has her account balance spread among nearly every option available in her plan. Diversification is a key ingredient to investment success, but this is overkill. Her current contributions also need an adjustment, as 70 percent is presently going to international investments. Instead, she should allocate her current balance and ongoing contributions to the 2035 target retirement fund, the year in which she will turn 66.

Get rid of high-interest debt
At present, Elizabeth has $2,800 in savings accounts and roughly $1,700 in credit card debt. It doesn’t make sense to be putting money into savings yielding 5 percent when she is carrying credit card balances at rates well into the double digits. Because of her saving discipline, she should tap the savings account to pay off her credit card debt, pronto! This will still leave her with over $1,100 available for emergency expenses.