We used to sit on a big pile of cash, maybe $40K-$60K+ depending on the time of year. This was not invested because it was intended to be used for any of these outflows: car replacement, home purchase down payment, maxing out IRAs every January, 'funding' certain discretionary accounts (we use YNAB) at the start of every year. And last and least, emergencies. The only change it ever saw for many years was the annual maxing out of our two IRAs at the start of every year and funding vacation and fun fund (DH and I each have an annual 'anything goes' allowances). Well, we drained that cash (plus liquidated another $50K out of our taxable brokerage account) when we made a down payment on our first home last month.
We are maxing out our two IRAs, my 401K, and DH's 403b & 457. (Well, nearly maxing for those last two. Max would be $39K, but DH's salary is just under $43K, and he needs to cover FICA and benefit costs. We get really close, but are short of maxing by ~$1,200.) Before our home purchase, we were also investing $1,300/mo into a taxable brokerage account, investing $400/mo into 529s and kiddo brokerage accounts. Any 3rd paycheck in a month, bonuses, random $ received would be saved as part of the big pile of cash, and would go to our IRAs in January.
Anyway, to my question. Should I halt or reduce taxable investments to rebuild cash? Should I aim to have a lump sum of $12K to dump into our IRAs come January? Or continue to invest what I can in taxable accounts, and when January rolls around and we can contribute to IRAs again, just start doing that biweekly instead of feeling smart that it's all done on January 2nd?
