On Mar 31, 7:12 am, jIM <noreplysoc...@[EMAIL PROTECTED]
> wrote:
> 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).
> I am trying to wrap my head around 1-3-4. Retirement asset allocation
> looks solid. Not sure if I should just keep 1-3-4 in cash, and within
> HSA, my thought is to keep 2 years medical expenses in cash, invest
> the rest as aggressively as possible. Within mortage paydown fund, I
> need to beat a 5.75% interest rate to make that account work for me,
> but also like idea of having this money liquid (and not tied up in
> equity).
> Would you bundle this all into one plan, or keep each pile of money in
> a seperate account/ seperate from overall asset allocation?
Your HSA probably has to be kept separate, so you can only combine 1
and 3. Some mortgages allow you to prepay and if you are short for a
few months you wouldn't have to make payments. Combining 1 and 3
should reduce your emergency funds requirement.
--
Ron
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