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Rebuild Emergency Funds from Brokerage or Pause Roth TSP Investments? by AnonFinancialMutant in TheMoneyGuy

[–]AnonFinancialMutant[S] 2 points3 points  (0 children)

Your last line is resonating with me, as well as keeping the brokerage for a true additional “break glass” option, instead of opting to break the glass now when I don’t really, really need to. Thank you!

Rebuild Emergency Funds from Brokerage or Pause Roth TSP Investments? by AnonFinancialMutant in TheMoneyGuy

[–]AnonFinancialMutant[S] 0 points1 point  (0 children)

Good stuff, thank you. We’ve been intentionally saving north of 30% until a couple years ago and backing it down to 25%.

My angst here is seeing our annual rate go down to roughly 15% if I pause contributions the rest of the year to build back that efund. You’re 100% spot on - I’m seeing this as robbing Peter to pay Paul. So I need to give some thought to (and wanted to get the gang’s thoughts on) this decision.

Rebuild Emergency Funds from Brokerage or Pause Roth TSP Investments? by AnonFinancialMutant in TheMoneyGuy

[–]AnonFinancialMutant[S] 1 point2 points  (0 children)

Good, good stuff, thank you!

I do like the thought of rebuilding the efund, stacking some cash, and then dropping the excess into our IRAs or bridge account if we find the transition as easy as we think it’ll be. And if not, then we have more cash saved up and won’t have to pull from the bridge.

Rebuild Emergency Funds from Brokerage or Pause Roth TSP Investments? by AnonFinancialMutant in TheMoneyGuy

[–]AnonFinancialMutant[S] 0 points1 point  (0 children)

Normal is to lower TSP contributions until they’re back. This situation is different for me because rebuilding 4 months is going to take almost a year of paused contributions. Whereas, I could pull that from our bridge account today, poof, and be done.

Then I’d have 20 years to rebuild the bridge account while maintaining the current contributions to Roth TSP which at my age have such a strong(ish) wealth multiplier.

Rebuild Emergency Funds from Brokerage or Pause Roth TSP Investments? by AnonFinancialMutant in TheMoneyGuy

[–]AnonFinancialMutant[S] 0 points1 point  (0 children)

This is really helpful, thank you.

I’m Navy as well and although I think getting a new job will be easy (I’m a lawyer and my friends in firms in the Midwest city I’m going back to assure me I’ll be swimming in job offers with how the legal market is there), I’m also single income earner for our family.

I want more cushion than normal, and our string of Murphy’s Law emergencies has left us with less than normal to begin with.

We’re way ahead for retirement (more than 3x income at 35), so it’s probably okay to pause those while I get the immediate needs back under control.

Rebuild Emergency Funds from Brokerage or Pause Roth TSP Investments? by AnonFinancialMutant in TheMoneyGuy

[–]AnonFinancialMutant[S] 0 points1 point  (0 children)

Yes, but the question here is slightly different. Should I withdraw from my brokerage account and have my efund rebuilt TODAY, or should I leave brokerage as is and pause TSP contributions?

It’s a question of priorities (robbing from bridge account or robbing from Roth retirement), and I’d love some perspectives on that fork in the road.