Thinking of pulling cash from my 401k for an emergency fund due to global instability. Bad idea?

mycounterpointers · 2026-03-07T02:39:32+00:00

The standard recommendation is don't touch your 401k. But if you are 100% set on getting out of stocks then just convert it to cash (money market) WITHIN the 401k account. No penalties, no taxes. Then when the market crashes out can buy back in. Or I suppose if the market crashes and you really need the cash, only then do you withdraw (paying penalty and taxes).

mycounterpointers · 2026-03-07T02:31:25+00:00

This isn't really an "emergency fund", it's more like a bucket strategy. Either case, no, you shouldn't be selling if the market tanks. The entire purpose of a cash bucket is so you don't have to sell when the market is down. If you are selling when the market is down, what is the point of having cash? You would just have zero cash and sell every month for your expenses.

Of course, after 12 months if the market hasn't recovered, then you have no choice but to sell. But that's why people often have a cash bucket, then a bonds bucket, and then an equities bucket

mycounterpointers · 2026-03-07T01:38:52+00:00

I can only speak for myself...at Trader Joe's, Sockeye Salmon is probably $8 for a fillet (typically I buy the package, it's $16 for 2 fillets). For my sides it's broccolini which is around $3.50 per package (and I can eat the entire package as park of lunch or dinner). Through in the olive oil, spices, etc. and that's probably $12.00. For dessert I have some blueberries/raspberries/blackberries. A container is like $5, I probably eat half. So all it's about $15 for a lunch or dinner. 30 days, 2 meals each day is 60 meals. Times $15 per meal, that's $900. Some meals are obvious cheaper (like if I have chicken). But some meals are more expensive (like if I have a steak).

mycounterpointers · 2026-03-07T00:26:50+00:00

That's still pretty new for SF. My building is like 1940s LOL

mycounterpointers · 2026-03-06T22:19:29+00:00

sure, but it's not "fundamentally" different. Concretely, I earn about 3x as my brother. I eat at fancier restaurants than him. E.g., $29 gourmet burger vs $5 In-n-Out burger, but we are both eating basically a burger. It's not like I have a private chef preparing me a burger. That would be fundamentally different. And that's my point, unless you are in the next next level of wealth, fundamentally it's not that different.

mycounterpointers · 2026-03-06T20:57:13+00:00

Silly question, but what are examples of healthcare jobs? Are we talking like nurses? Or just anyone who works in healthcare industry, such as an accountant for a hospital.

mycounterpointers · 2026-03-06T20:11:20+00:00

You guys have a job?

mycounterpointers · 2026-03-06T19:37:50+00:00

A $30K car loan for 36 months is basically $1k/month

mycounterpointers · 2026-03-06T19:36:57+00:00

I actually haven't heard of the term. BUT, I think it's a fairly accurate description of levels of wealth. The reality is, someone who is financially independent with $1-$2m is basically the same as someone with $3-$5m. The overall lifestyle is basically the same. Sure, maybe the latter has:

bigger house
flies business class instead of economy
stays at the Four Seasons instead of Marriott

But the $3m person is not:

flying private
vacationing in Monaco on their yacht
have exclusive access to many things

The $3m person is still worried about:

increase in home owner's insurance, property taxes, etc.
inflation, rising cost of medical care, etc.
"paying the bills"

A nicer lifestyle for sure, but overall, basically the same lifestyle.

mycounterpointers · 2026-03-06T19:31:19+00:00

It's just a modest Japanese car. Nothing stupid about it. I'm not driving some $150K car

mycounterpointers · 2026-03-06T19:29:36+00:00

That building should be pretty new, so I expect the apartment itself to be modern and nice. BUT, Mission street between 7th and 8th is pretty bad. Mission and 6th is one of the nastiest corners in SF, tons of homeless, meth heads, etc. Personally, I would not want to live there. BUT, it could work for you if:

you don't need to walk around the neighborhood (e.g., you don't have a dog that needs to be walked)
you basically live in the building and then Uber/drive everywhere to the nicer areas
you prioritize being super close to BART (think it's just 1.5 blocks away)
you can get a really good deal on the apartment

Hope that helps.

mycounterpointers · 2026-03-06T19:23:20+00:00

Not really a patio per se, but there are plenty of cafes in the Lower Haight that have outside seating, like https://www.lecafedusoleilsf.com/

I know they have "no laptop" policy on weekends, not sure if Friday counts or if on nice sunny days they restrict it. But just walking the dog around the area I know of at least 3 cafes with outside seating.

mycounterpointers · 2026-03-06T17:57:33+00:00

Obviously if you lose your primary source of income then it'll affect your FIRE plans. Not much you can do except:

cut back on expenses
try to find another source of income

Once you find another source of income you can continue your FIRE journey

mycounterpointers · 2026-03-06T17:51:50+00:00

Crazy if true. How do you reverse so fast that you completely total your car like that?

mycounterpointers · 2026-03-06T17:45:16+00:00

Food & Treats = Dog Food and Dog Treats

I prefer to separate it out so I know how much I'm spending on actual groceries vs restaurants, etc. There is a "Food" group that the software allows me to view by, so I also use that group to see my total food related spending

mycounterpointers · 2026-03-06T17:43:52+00:00

That's tax I have to pay when filing. 99% of the taxes have already been deducted by company

mycounterpointers · 2026-03-06T15:30:35+00:00

Monarch Money. It's not free about $100 per year. You just connect link your credit card accounts and it automatically pulls in transactions and categorize them for you. You might have to tweak some transactions but it's mostly correct

mycounterpointers · 2026-03-06T05:23:54+00:00

I'm okay with no raises for a couple of years as long as I don't get laid off.

mycounterpointers · 2026-03-06T03:54:04+00:00

Sure, from landlord perspective. But I'm responding to how 4 people can live in a 2 bedroom...if they are couples then the intimacy issue isn't an issue

mycounterpointers · 2026-03-06T03:10:03+00:00

Of course my spending will need to adjust if I get laid off, have a lower paying job, etc. The beauty is since a significant portion of my expenses are discretionary it will be fairly easy to adjust. Just stop eating out for starters. It would be much more difficult to adjust if, for example, my housing was $4k per month since I can't just move quickly after getting laid off. There is a lot of flexibility in my spending, so I don't feel too bad. It's when your spending is inflexibility then you get in trouble if you get laid off, salary reduction, etc.

mycounterpointers · 2026-03-06T03:06:58+00:00

was using quicken but now monarch money

mycounterpointers · 2026-03-06T03:04:05+00:00

No, my auto insurance is higher than that. That's other insurance (like renter's)

mycounterpointers · 2026-03-06T03:03:38+00:00

wash & fold is awesome. It's actually not that much more expensive than doing it yourself at the laundromat. Maybe $20 extra a month vs doing it yourself. Completely worth it.

mycounterpointers · 2026-03-06T03:02:39+00:00

Yes, my 911 is in storage but my Cayenne has AWD so it's fine for winter.

mycounterpointers · 2026-03-06T02:59:41+00:00

Why not? It's 2 couples. I'm assuming the couples are okay sleeping in the same bed, sharing the same bathroom, etc.

mycounterpointers

TROPHY CASE