jIM wrote:
> I am reviewing some account information and making sure I understand
> what is generally recomended.
>
> We have savings for 4 reasons:
>
> 1) Emergency fund with 3 months expenses (in a 90 day CD ladder)
> 2) Retirement (160k, invested in nearly 100% equities)
> 3) Mortgage paydown fund (invested in PRPFX). This doubles as a
> secondary emergency fund, so investment risk is moderate at best.
> 4) HSA- this is a new one- It finally has enough money to invest (I
> need to keep some of it in cash for current medical expenses, and the
> rest of it could be invested).
Well, first, congrats on the new kids. I don't really understand (3). If
it's an emergency fund, treat it as such. It stays liquid. But then how
is it different than (1)? You might want to cap 1+3 at 6 months'
expenses and choose between actually paying down the mortgage or putting
it in your retirement ****tfolio.
Are you able to contribute to a Roth? That's one hybrid choice to
consider, as deposits may be withdrawn with no penalty, but if no
emergency comes up, you can ****ft it to more aggressive investments.
Joe
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