• @FancyPantsFIRE
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    21 year ago

    Presumably the 8-30k would otherwise be invested in your taxable brokerage, seems to come down to a question of risk tolerance. At that balance It’s very unlikely you’d find yourself in a situation where you couldn’t pull those totals out of the brokerage even in a severe market downturn. It’s true in that situation you’d be selling down, but keeping it cash forgoes market returns in the mean time.

    Personally I’m pretty risk averse and like to keep a cash buffer in HYSA/CDs/I bonds despite having a significant taxable brokerage balance. This was true even before the interest rate situation became more favorable.

    None of the approaches you’ve listed seem outright wrong for your situation. I’d concentrate on what your risk tolerances are and back out your approach from there.