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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: SoCalGal who wrote (7848)	8/10/2024 1:27:26 PM
From: SeeksQuality	Respond to of 22121

I know that feeling! Our personal income could fall $100k at any time, very unpredictable. And our expenses are pretty unpredictable as well -- which is the reason we've built out a large CD ladder, comparable to what you describe. That gives us the security to handle whatever life delivers. You don't absolutely need to keep cash in your 401k. From a practical standpoint it doesn't make a significant difference one way or the other, given the numbers involved. From a psychological standpoint it might be easier to keep a cash reserve than to find yourself selling stocks to meet an unexpected need? Note that lump-sum withdrawals from a 401k can trigger large tax bills. There is definite value to keeping liquid cash in taxable accounts, and you have to balance that against the health care costs. Good luck, however you decide!