I am looking for some opinions on where we should store our money. My wife and I (25/yo) only have about 25k in our available savings in our High Yield (3.3%) which is about 6 months of emergency funds. Our only debt currently is our mortgage, which has about 340k remaining. We both max out our Roth at now $7,500 and currently have 50k and 35k along with also each putting 10% into our work supported plans with having a 3 and 4% match having about 40k and 10k.
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Are we investing too much into retirement? Should we have more available savings?
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Having 6 month emergency funds, would it be wise to start investing some of that into S&P500 to have quicker growth as we have no current plans to make another big purchase in the next few years?
Posted by SupergoonerBL
3 Comments
1. Nope. 3-6 months is enough, and 1 year if you have variable income.
2. Nope. Should remain liquid(ish).
The following provides a great foundation to build on.
[https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/)
Sounds like you’re in a solid spot tbh. For question 2 – don’t touch that emergency fund, that’s what keeps you sleeping well at night when life hits you with unexpected stuff. If you want more investing beyond retirement accounts, build up additional savings first then throw that extra into index funds
Like others have said, leave your emergency fund where it is and work to not touch it. If you want to start another “fund”, you should do that if there’s a car or other major purchase in your future. The emergency fund is there in case of job loss or catastrophic accident.
Because you’re already maxing out the Roth accounts, the next step is to up your 401k contributions until those are maxed out and THEN a standard investment account.