The problem is that you don't always know when you will need the cash. Will it be 5 years or 10 years? Well how is my roof going to hold up? WEll, is a pink slip around te way? You don't quite know. You have to plan for a job hunt taking longer etc. and if ytou are really cautious, you willl need a lot of liquid cash.
I moved some money into my roth and keep it in something like a money market fund so I don't have to pay taxes on the interest which I did in the bank. I could only put the max allowed though which was only a fraction of my account. I want the money out of stocks in case I need it, but I probably won't need it soon so it is there tax deferred for now.
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