Author Topic: Money for Rent Outside or Inside Retirement Accounts?  (Read 553 times)


  • Stubble
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Money for Rent Outside or Inside Retirement Accounts?
« on: June 07, 2018, 02:58:57 AM »
For the sake of this post, assume renting is better than buying.

Let's assume you've got XXX,XXX amount of money and you can safely withdrawal from it for life in order to cover rent.  Where do you keep it?

In other words, do you keep your money to pay rent separate from your retirement accounts or do you lump it all together in order to get to FIRE as fast as possible.

I always plan to at least work part-time and so a good chunk of rent can simply come from that income.

It seems like there are 3 theories:
1. Max everything in to retirement accounts completely.  The money can grow tax free but it is harder to access it to actually pay rent with it.
2. Keep rent in a taxable account.  That big chunk of money may be nice to have outside of retirement accounts in case you do decide to buy some day.
3. A mix of the two.....most money in to retirement accounts but some money out.

Thanks in advance for any views on this!
« Last Edit: June 07, 2018, 03:07:16 AM by heybro »


  • Magnum Stache
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Re: Money for Rent Outside or Inside Retirement Accounts?
« Reply #1 on: June 07, 2018, 04:54:41 AM »
This is less a rent than a general expenses question. I would personally keep at least one years worth of cash in some easily liquid form and a healthy emergency fund. I'd probably replenish at some frequency. This is all going to be up to you and your risk tolerance.