21% of those making over $100k are living paycheck to paycheck

[MonkeyMama]

Well, I had to clarify, I have a FULL EF, but I choose to invest some of it in my ROTH. There is very sound reasoning for this. I'd say I'd be remiss to not max out my ROTHS. But there are many reasons for this, that I won't go into, but I am defending people who utilzie ROTHs in their efund strategy.

I do admit I have plenty of Efund and plenty of retirement, regardless. IT is a tax shelter strategy, simply. For that, I'd say my situation is wise.

[tripods68]

Originally Posted by maat55

My expenses don't include investing. We would continue to invest unless my business completely failed. If I were without income, hers would slow the drain of our EF. If either of us were to be without income, we would probably hold the investment money in savings until the income was restored. I guess it would depend on how the market is doing.

That's smart. Just curious, do you have short term disability insurance?

[tripods68]

Originally Posted by maat55

Are you basing your EF on expenses or income? 6k is a lot of expenses. I have my survival expenses to 2k a month. We have reached our 12k EF that covers 6 months for us. 36k will be an outstanding EF.

I had to double check again our total monthly expenses since I didn't have my spreadsheet in front of me last night.

CORRECTION: Our mandatory expenses is actually $4533 a month based on monthy Net $7533. We spend closer to $6K a month to fund necessary accounts: ROTH/IRA/529/EF/Kids savings account. The remaining $1533 (7533-6000=1533) is our TRUE disposable income. I say that since we have the options to do whatever we want (spend or save) except car repairs so not to dip into our EF. Lately, DW has been on shopping spree with kids cloths for our two toddlers, toys, gifts, etc. Anyway, DW is planning a trip to Asia (just her) next February for couple of weeks so half of that money is saved for that trip. Any other normal months, we really just saved most of that money.

[maat55]

Originally Posted by tripods68

That's smart. Just curious, do you have short term disability insurance?

Thats the one kink in my armour, I've done some reading on it, but have not pulled the trigger yet.

[tripods68]

Originally Posted by maat55

Thats the one kink in my armour, I've done some reading on it, but have not pulled the trigger yet.

It's definitely worth it to have in case something ever happened.