Well, your plan is great except that at age 50 you won't be allowed to touch your retirement accounts (yes I know there are exceptions). See my first post above.

quote:
getting back to the main question, what's the benefit of having a large amount of liquid assets from ages 25-45?

Protection from loss of job, severe injury (yourself or family member), crippling disease. Lord only knows. Call me a pessimist I guess

I hear you on the bagging groceries bit, but here's the thing - that's an extremely low bar to hurdle. Like, you always read articles pushing this "retirees eating ramen noodles" but you don't need $2M in a 401K to avoid eating ramen noodle. I know lots of old people who worked normal blue collar jobs; they don't seem destitute. And I used to be convinced that SSI would be unavailable when I retire. Now I'm cynical enough to realize that taking away those kinds of gov't programs is completely impossible from a political perspective. Seriously, SSI + paid off house + not ridiculous spending habits (ie, no 4 nights a week at the treasure Treasure Chest) and you're already beyond the "bagging groceries" zone.

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Posted by poochie

Houma, la

Member since Apr 2007

6179 posts

Posted on 8/21/15 at 4:29 pm to Cold Cous Cous

My point is I don't want to or have to touch my retirement at that point. I want to get to a spot where that money can work on its own then switch over to saving for the years between when I actually retire and when I can draw from my retirement. Since I'll just be "living" at that point and not focused on the future, I won't have to worry about saving.

35-45: invest in retirement accounts
45-55: invest in more liquid accounts
55: retire/work what I want
55-62: live off liquid accounts
63-dead: live off retirement accounts

Also, I can pull from my invested portion of the Roth in one of your SHTF scenarios so that's good as liquid.

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