🔺 r/personalfinanceuVorqanis95·61 days ago
Should I keep contributing to my 401k if I might need the cash in 2-3 years
I'm 28 and been putting 8% into my 401k for the last four years with a 4% company match. Balance is around 42k right now which feels decent but not amazing. The thing is I've been thinking about maybe buying a place or possibly going back to school part time depending on how things shake out over the next couple years. Right now I'm still renting and my emergency fund is about 4 months of expenses. I know the standard advice is to never stop the 401k especially with the match but I'm wondering if it makes more sense to drop my contribution down to just the 4% to get the match and then redirect that extra 4% into a regular brokerage or high yield savings. That way I'd have more flexibility if I actually need it without dealing with penalties or loans against the 401k. My income is stable, no debt except a small car payment that'll be done in a year. I guess I'm just not sure if I'm overthinking this or if it's actually smart to prioritize accessible money when I'm not 100% certain what direction my life is going. The 401k feels like the right long term move but short term I keep second guessing whether I should have more liquid savings instead. Anyone been in a similar spot or have…