re: How do you store non-emergency savings?

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Actually purple and gold is right.
Only certain exceptions let you withdraw from ROTH.
Death being one, 1st time home buyer of up to 10,000 is another, and i forgot the third.

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That's true with your earnings. You can take your contributions out any time.

You've already paid taxes on your contributions.

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Although you normally must hold the Roth account for at least five years and be at least 59 ½ before you can tap the earnings tax-free and penalty-free, there are exceptions, including death or disability of the account holder or to use up to $10,000 to purchase a first home for yourself or certain family members. In addition, you can avoid the 10% early withdrawal penalty, but will still incur income taxes, if you withdraw earnings early to pay higher-education costs for yourself or a family member.

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To the OP.

I consider myself unsophisticated and pretty stupid when it comes to finances. My wife and I keep about $3500 in savings betwee the two of us for things like emergency home/car repairs, impromptu road trips, etc. If I didn't have two cars with over 100,000 miles each to maintain and a 30 year old home, I'd be comfortable with $1500 or so here.

The rest of our savings are invested in balanced vanguard funds and in a few other investment vehicles. At the end of the year, I take a portion of this and throw it in my Roth, another portion goes towards student loans and home upgrades.

Probably won't contribute very much to my Roth this year seeing the expenses on the horizion (HVAC work on the house, replace wife's car, etc).

So I guess those two won't be returning to this thread

To answer your original question:



DRIPS. Buy and hold.

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I've asked (and probably will ask) some pretty foolish questions on this board.

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Oh I have to... But to sit there and argue with 5 or 6 posters who have discussed this recently is

Curious, what DRIPPS do you own?

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Plan ahead and build up a savings cushion and leave it alone. Leave the Roth alone.

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I think this is good advice. If you need a new roof or have some catastrophic expenses, try to just contribute less. Avoid withdrawing as much as possible.

Lots of people treat it like a piggy bank, and I imagine it was a lifeboat for many families in 2009-2010.

Meant DRIP

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Meant DRIP

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WTF is that... I'm dumb, remember.

Treat me like I'm 5 and running around with no underwear on

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Why on God's green earth anyone would use a Roth as a savings account is beyond me. There is a $5500 yearly contribution limit ($11K for a couple). It's not like you can replace $50k at the drop of a hat. That money and time is lost forever. Plan ahead and build up a savings cushion and leave it alone. Leave the Roth alone.

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This is true under certain conditions.

If you can only budget 200 for non employer retirement, and want to throw a couple hundred more for a savings, it becomes viable to combine. Not nesscessarily ideal, but a possible choice.

So if you withdraw from your contributions to the Roth, can you repay that withdraw or are you limited to your yearly contribution limits?