What do you guys think about this plan?
I want to develop a plan to both set up an emergency fund and fund Roth IRAs for my wife and I. Is there a flaw putting so much aside per paycheck (about 400 when paid biweekly) such that it will exceed the Roth limits and slowly funneling money from the E-Fund, once it's at an acceptable level, to the Roth accounts.
The idea is that E-Fund money in excess of a couple of months of pay is not working for you as much as it could. With this method quarterly lumps could be transferred to the Roths, and there would still be savings money to account for Murphy visits.
Is this a good idea, or is it just better to fund the emergency fund and then start making direct Roth contributions?
I want to develop a plan to both set up an emergency fund and fund Roth IRAs for my wife and I. Is there a flaw putting so much aside per paycheck (about 400 when paid biweekly) such that it will exceed the Roth limits and slowly funneling money from the E-Fund, once it's at an acceptable level, to the Roth accounts.
The idea is that E-Fund money in excess of a couple of months of pay is not working for you as much as it could. With this method quarterly lumps could be transferred to the Roths, and there would still be savings money to account for Murphy visits.
Is this a good idea, or is it just better to fund the emergency fund and then start making direct Roth contributions?