Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
By "retirement money" do you mean money you're putting away for retirement, or do you mean money you're putting in retirement accounts?
I'm guessing you mean "retirement accounts" which, by design, are not easy to get at and could incur penalties and taxes if taken out for something other than retirement or hardship. But "retirement money" doesn't have to be money just in retirement accounts. In fact, I have more of my retirement money outside of retirement accounts than in retirement accounts. "Retirement money" is a mental category, whereas "retirement account" is a legal category. Your retirement money doesn't have to be restricted to the latter. It's how you think of it that counts, and your discipline to stick with your definition.
~Tim~
Thu Feb 23, 2012 5:52 am
oldguy Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
quote: Not three months. Not six months. Three to six months. That's the common advice given. Some will even say nine. I've heard twelve before. I've even heard of less than three. But, all in all, three to six is what we tend to hear.
If you use the "11%/yr return" concept, there is no real point to an upper limit. The $25k is nice, but nothing wrong with keeping $125k, $250k, $500k - in a taxable fund.
Remember, if you sell some, you pay only 15% MAX taxes on the profit portion. Or, if you use your 401k money in retirement (a regmt after age 70 1/2) you can let your heirs have the $500,000 tax free (stepped up basis).
Thu Feb 23, 2012 9:17 am
fast Senior Member
Cash: $ 45.05
Posts: 220
Joined: 20 Oct 2009
Pressed for time at the moment, but thanks for those last two posts.
