Re: Balancing Retirement and Non-Retirement Savings

jIM <noreplysoccer@[EMAIL PROTECTED]
> writes:

> 6 months expenses are suggested in cash.  This is to cover
> emergencies.  I have a hard time watching 6 months expenses (25k+ for
> me) earning 2-4%.
>
> So I took a 3 and 3 approach.
> 3 months expenses in 90 day CDs (laddered to mature every 30 days)
> 3 months expenses in a moderate mutual fund (I use PRPFX).

I do something similar with dividing my "emergency fund" into layers.
I routinely keep enough in my checking account to cover an extra
month's expenses, and another $5000 or so in a money market account to
cover unexpected home repairs and the like.  Beyond that, I have money
in a muni bond fund that I could tap into in case of a longer-term
emergency.  I consider it part of my retirement savings and count it
towards the bond part of my asset allocation, but since I know it's
there I don't feel like I have to keep huge piles of cash around.  

Anyway, I agree with the general advice others have given to the OP:  do
try to continue to take advantage of any employer match on the 401K, don't
cash in existing retirement accounts, do watch expenses until you build up
your savings again.

-Sandra

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