jdjd09 wrote: Wed Oct 15, 2025 9:05 pm
To the other comment about maxing out 401k, I don’t do that because I am reaching my retirement goals based on my current contributions and want to use the rest of my money for the here and now. I already did the calculations and I am at my goals for retirement. I realize maybe that is what the “rules” say to do, max out 401k, but I would like to move remainder money for here and now.
As a reminder, especially since we haven’t heard from poster KlangFool in awhile, you may not be employed as long as you think.. They would often remind people about the risks of being laid off, having health/family issues, etc. that force you to earn income (and thus save) for fewer years than “projected”.
So I think there is a distinct difference between actually having a “plan” that only works with zero employment gaps vs. one that still “works” even with potential employment gaps…
I’m also not really clear what you mean by “money for here and now”. Money is fungibil. While I keep some cash on hand, ultimately my entire pot of money is there to meet my needs. If I need/want to buy a new car, take a big vacation, etc. – I can use my “cash”, use some of my I Bonds and/or Muni bonds, or sell some of my stocks – the “source” of the funds doesn’t matter…
Lastly, I don’t view “buckets” of money as distinct (they are still fungibil). More specifically, my entire “cash” amount is simply part of my “fixed income” allocation. So if I had “extra money” – I’d simply invest it per my asset allocation…
That said, if you are just trying to say “finding a balance between saving for tomorrow and enjoying today”, I’m 100% supportive! We must save for tomorrow (and realize that we might not get to work as long as maybe we thought). But we should try to enjoy the journey as well! Find balance, and I think you find success!
Assuming that’s what you are going for, and are focused more on “cash like” investments, some considerations often include:
- High Yield Savings Accounts
- Money Market funds
- Treasuries (short-term bills, TIPS, etc.)
- Savings Bonds (such as I Bonds)
Depending on your risk tolerance, could also consider municipal and/or corporate bonds (Total Bond) – depending on tax bracket.
As noted, i just include all my money into one big portfolio. But I have a higher “cash like” allocation than many have, as I have some unique cash flow things where doing so just works better for us. Personally, I’m using many of the above:
- Keep a couple of months expenses in HYSA and/or Money Market funds (at Fidelity)
- Keep several months worth of expenses in a ladder of 1-, 3-, and 6-month Treasury Bills (at Fidelity)
- Keep several years worth of expenses in muni bonds (appropriate for our tax bracket), although this was mostly because we were running out of space for bonds in tax-advantaged accounts
- Have a quite sizable amount of I Bonds, helped by purchasing with spouse, via trust accounts, etc.
- Plus all of our bonds in our tax-advantaged accounts…
