Some background:
I think it's highly likely I'll need to relocate within 5 years to another city for a job. Some equity built up in our current house, but move is likely going from our LCOL area to a HCOL area so equity may be insufficient for a downpayment.
In this sort of situation, would you trim back on tax-advantaged retirement savings in favor of investing more in a taxable brokerage (even if it's only in SGOV due to the time horizon)?
How do you prioritize contributions to taxable brokerage account vs maxing tax deferred accounts?
byu/Slight_Taro7300 ininvesting
Posted by Slight_Taro7300
2 Comments
I’d separate the goals.
Retirement money: still get the match and use tax-advantaged accounts as much as you reasonably can.
House/move money: don’t lock that in retirement accounts. If you need it in ~5 years, HYSA/T-bills/SGOV makes sense.
So yes, I’d trim retirement contributions if maxing them means you won’t have enough liquid cash for the move. Just don’t cut below the match. The down payment is a real goal, not “wasted” cash.
The top comment has it right, the key distinction is separating the two goals mentally and financially. One thing worth adding is that LCOL to HCOL moves often cost more than people budget for beyond just the down payment, so having extra liquid buffer beyond the projected shortfall is worth building in. Trimming retirement contributions just enough to maintain the match while stacking taxable savings for the move is probably the cleanest path here.