I Have $500,000 in My Taxable Investments. Is That TOO Much?

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I have $500,000 in my taxable investments. Is that too much? Today I answer that query. To understand the answer, I explain the three basic types of investment accounts. I define taxable and tax-deferred investments. Furthermore, I give specific examples of each.

I also demonstrate the importance of having these types of accounts at all. I double in on the worth of emergency funds. Then, using examples and explanations, I answer why it is a problem to have too much money in your taxable bucket.

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There is a thing called tax efficient investing. As long as you hold tax efficient investments within your taxable account and by using your power of zero philosophy keeping the balance low enough as to not trigger taxation. I generally keep about 6 months of expenses in a money market and that's about it. Not sure what your thoughts are on that.

hanswhite
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If you are working and wife is retired can you still contribute for the wife

DavidAHaugh