DH and I have 6-10 months expenses (depending on how frugal we will be) saved in our e-fund. I'm a SAHM and we have a rental property that was built in 1922 so we need a 'bigger' e-fund. Currently it's in a savings account at our credit union earning 1%. I realized that we haven't touched this money at all over the past year. This is a lot of money (HCOL area) that we are letting just sit.
I'm thinking it would make more sense to move half of the money to the stock market. We are putting 15% of DH's salary into his 401K (plus 3% employer match), but we haven't been putting anything into our Roths. I'm thinking of moving $20K ($10K in 2010 and $10K in 2011) into a conservative fund in our Roths. You can remove contributions from the Roths at anytime without penalty. We would still have about 3-5 months expenses in our savings account.
Besides market risk my other concern is applying for a house. Do the mortgage companies look at retirement savings as emergency reserves?
Thoughts?
I'm thinking it would make more sense to move half of the money to the stock market. We are putting 15% of DH's salary into his 401K (plus 3% employer match), but we haven't been putting anything into our Roths. I'm thinking of moving $20K ($10K in 2010 and $10K in 2011) into a conservative fund in our Roths. You can remove contributions from the Roths at anytime without penalty. We would still have about 3-5 months expenses in our savings account.
Besides market risk my other concern is applying for a house. Do the mortgage companies look at retirement savings as emergency reserves?
Thoughts?
