should i decrease my 401k contribution (down to company match) to beef up my emergency fund?

Answer 1

Yes. And when you reach three months salary in your emergency reserve, max out your 401 again.

Answer 2

You should COMPLETELY STOP your 401(k) contributions (until you hit Step 4 below).

7 Steps:

1) You need at least $1000 as an Emergency Fund.
2) Pay off all your debt (minus the house).
3) Build up your Emergency Fund to account for 3-6 months of expenses.

4) THEN invest 15% of household income for retirement. Start with the company match (and do JUST the match). Then max out Roth IRA contributions. Anything left over (to cover the 15%) should then go back to your 401(k).

5) Build college fund for kids.
6) Pay off home early.
7) Build wealth and give! (Real estate and mutual funds -- NOT gold coins!)

Follow those steps; yes, they may sound "crazy", but they WORK! (Besides, "normal" is BROKE -- as in "having no money"!)

Hope that helps! :)

-e

Answer 3

Have to agree with the people above. Make sure you take advantage of the company match. Once most of your debt it taken care of I prefer maxing out a ROTH IRA assuming you are eligable for one. After that increase your contributions to your 401k again. Just make sure you don't start using the extra money. Once you start using it, it will be harder to wean yourself off of that money.

As for the Gold people, I would suggest staying away unless you know what you are doing. Gold has seen some great appreciation over the past few years, but there is a lot of talk that this will not continue.

Answer 4

The gold coin people are absolutely stupid. Go with the Dave Ramsey approach. You should decrease your 401k to max out your emergency fund. Be careful though; when you have your emergency fund don't forget that you need to up your 401k. You could easily see the new money and fall off the savings horse.

Answer 5

Get out of your 401K and convert to gold coins. The 401K will not be worth anything in a couple years.

This is the best answer I suppose you should follow this.

Answer 6

Get out of your 401K and convert to gold coins. The 401K will not be worth anything in a couple years.

Answer 7

Even without the corporate tournament, once you've extra money to save after doing all that you already are, stick it contained in the 401K. i'd merely stick it 80/20 or so between index inventory and bond money. you're nonetheless getting the tax advantages, which equate to some factors of go back on any non-tax-favored money owed. or merely pump up your variable existence coverage, assuming that's what you've. you could consistently positioned extra into it, it does have some tax advantages. And by utilizing the way, you're making something else persons look somewhat undesirable. thanks for that. :P

Answer 8

As long as you are still contributing to your 401 and the company matches, I don't see the harm in lowering the amount. You can always put the amount back up later.

Answer 9

Another vote for the Dave Ramsey approach.

The gold coin people are smoking crack.

Answer 10

of course.. it if free money that the company is matching