For reasons that aren't relevant to the financial discussion, we might need to come up with approximately $100k in cash. This is something I've known about for a while, and I will hopefully know an outcome relatively soon. I am not entirely sure of exactly how quickly I'll need to come up with the money once I know an outcome, but I would like to get some opinions on the most prudent way I could draw this money from existing sources. I obviously would like to minimize the amount of money, if any, I pull from retirement accounts. Some details of our personal and financial situation are below.
Income/Expenses:
Him (38): $95k
Her (40): $105k
Monthly Expenses: $5k
Retirement: (total ~$1.4MM)
His (federal employee) TSP: $333k (79% stock, 30% bond)
Her 401k: $529k (76% stock, 24% bond)
Joint Brokerage: $286k (100% stock)
His Roth: $117k (100% stock)
Her Roth: $141k (100% stock)
His Rollover IRA: $31k (100% stock)
Overall retirement AA: 82% stock, 18% bond
Cash/Checking:
Joint Money Market (emergency fund): $93k
Personal checking/savings (used for month to month expenses): $25k
Questions/Discussion:
1. We have been stockpiling cash as much as we can in anticipation of the possibility that this might happen, so we have $93k in our emergency fund, which would equate to about 18 months of current expenses, so we can afford to take a good chunk of this money (~$65k) and put it toward this expense. This would leave us with about $35k to come up with.
2. We can borrow the $35k from my parents and pay it back $1000/month. They've offered this as a gift, but I want to pay it back if we take it.
3. If #2 is not a possibility or we decide against it, what would be the best source to draw this $35k from?
4. There is a possibility, because of a job-related circumstance, that we might not want to touch our emergency fund. If this were to happen and we needed to come up with the full $100k from the above retirement sources, what's the best way to do this?
5. I can take a TSP loan if needed, would this be advisable versus touching retirement money?
Income/Expenses:
Him (38): $95k
Her (40): $105k
Monthly Expenses: $5k
Retirement: (total ~$1.4MM)
His (federal employee) TSP: $333k (79% stock, 30% bond)
Her 401k: $529k (76% stock, 24% bond)
Joint Brokerage: $286k (100% stock)
His Roth: $117k (100% stock)
Her Roth: $141k (100% stock)
His Rollover IRA: $31k (100% stock)
Overall retirement AA: 82% stock, 18% bond
Cash/Checking:
Joint Money Market (emergency fund): $93k
Personal checking/savings (used for month to month expenses): $25k
Questions/Discussion:
1. We have been stockpiling cash as much as we can in anticipation of the possibility that this might happen, so we have $93k in our emergency fund, which would equate to about 18 months of current expenses, so we can afford to take a good chunk of this money (~$65k) and put it toward this expense. This would leave us with about $35k to come up with.
2. We can borrow the $35k from my parents and pay it back $1000/month. They've offered this as a gift, but I want to pay it back if we take it.
3. If #2 is not a possibility or we decide against it, what would be the best source to draw this $35k from?
4. There is a possibility, because of a job-related circumstance, that we might not want to touch our emergency fund. If this were to happen and we needed to come up with the full $100k from the above retirement sources, what's the best way to do this?
5. I can take a TSP loan if needed, would this be advisable versus touching retirement money?
Statistics: Posted by daheld — Fri Dec 06, 2024 9:17 am — Replies 10 — Views 239