tag:blogger.com,1999:blog-4801338959407904455.post1892172523072968330..comments2024-02-26T09:19:52.535-05:00Comments on Adventures of Sam: 2012 Savings Goals - February ReportSamhttp://www.blogger.com/profile/18434037543456159718noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4801338959407904455.post-58541438248553158682012-03-04T13:15:42.122-05:002012-03-04T13:15:42.122-05:00Like you we always plan and do max our our 401k to...Like you we always plan and do max our our 401k to the IRS limits. A thought, since I find I can't keep much savings sitting idle, and you have a sizable emergency fund, depending on your comfortable level, is to put this year's emergency fund contribution into some conservative investments in your brokerage account instead. You take more risk than a MM or bank CD but you can liquid in an emergency, just potentially with some loss. I keep just $10k in a money market. I have credit I never use as a short term gap about the $10k if needed. But I do have a number of mutual funds etc that could be drawn down if I need the money. At the moment when I have a few extra hundred in the checking account I transfer it to a mid-cap index fund offered by my brokerage with no transaction fee and let it build. When it reaches a certain level I will add to something else. I also have some funds in some safer balance funds that mix large cap stocks and bonds to mitigate some of the market volatility. I do have some riskier stuff that I would look to last. My only point is maybe you can sleep well with $25k in an emergency fund (or pick a number)with a backup brokerage account with a bit more risk but higher potential then 1% return instead of just $50k cash. But your situation may require a high cash balance in reserves. Something to consider.Anonymousnoreply@blogger.com