3 years to go and I need $150k CASH. Help...

[meleana]

You already have $150,000 in your Roth and you can access that money tax free is necessary. I know it is probably in investments, but you could use it as an emergency fund as well. Are you making the max contributions to it?

If so- maybe you could change those future Roth contributions to a money market fund within the Roth?

And definitely only contribute up to the match in your 401k so you can save more cash if that is what you want to do.

 

[meleana]

If your reason for having cash is worry about a downturn and the impact on your whole portfolio, you can accomplish that same objective by putting $150k in your 401k into cash.. in fact you can do that now... better yet, perhaps your 401k has a good stable value fund... better than cash.

My husband's entire $200,000 401k is in a stable value fund, except 4% in company stock- which is how they pay the match.


And yet we still keep $140,000= in cash- outside of that. We are in our 60's. I know- ultra conservative, but we sleep better.



Our issue is when he retires should he leave the 401k with the company or move it to a rollover IRA at our mutual fund company where he has his other IRA's? If he does that he will not be able to put it in a stable value fund, just a money market.(We only do TREASURY money markets)

 

[pb4uski]

If the stable value fund pays a good rate of interest.... significantly better than a MM... then I would leave it there.

And if you only do Treasury money markets then you are indeed ultraconservative... but just remember that there is also such a thing as inflation risk and some of those ultraconservative investments lose round to inflation each year.

 

[meleana]

If the stable value fund pays a good rate of interest.... significantly better than a MM... then I would leave it there.

And if you only do Treasury money markets then you are indeed ultraconservative... but just remember that there is also such a thing as inflation risk and some of those ultraconservative investments lose round to inflation each year.

What I meant is for money market funds we only do Treasury type money market funds as they are a bit safer since money market funds are not insured.



Of course, we have stock and bond mutual funds and ETF's in our investment mix.


Actually right now the stable value fund is not doing so great.