re: How much of an emergency fund do I really need?

quote:

---

In your situation, I would (in this order)
a) Get $1000 in cash in a savings account, maybe $2k
b) Max out your roth each year
c) Max out your 401k
D) start a brokerage account on the side

---

Slight thread hi-jack, but I enjoy reading your posts on this board so I wanted to get your input. I understand contributing to a 401k before starting brokerage account. But why max it? I mean it's great if you can do it, but for many people (like myself) in their 20's, putting $18k in a 401k isn't a realistic possibility, especially after maxing the Roth.

What if you need to make a big purchase? Wouldn't it be better to have the ability to liquidate assets held in a brokerage account for a good down payment rather than having all that money tied up in a 401k?