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I agree with both JLC and LooseChange on the Emergency Fund. I have 4-6 months worth of living expenses in various forms (cash, savings bonds, money market fund) but I know that I will eventually have to pay for my daughter's wedding, my son's and daughter's college education, and my retirement home when I get out of the USAF.

I feel like I need some funds that aren't tax deferred so that I have access when I need it. I have the oppurtunity to join the military Thrift Savings Plan (TSP) which I belive is similar to a 401K but without fund matching. If I max out my contribution to it and my Roth IRAs there won't be much left over for investing in regular funds/stocks.

I have a pretty nice next egg in those "regular" investments and I plan to let them sit and grow. But for now (starting Jan 02 when the TSP is available to me) I will stop investing in the taxable funds to ensure I max my TSP and Roth IRAs.

Am I wrong in any of my assumptions? I am still in the learning process and trying to figure out how I will deal with this situation.


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