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Subject:  Emergency Savings vs. Maximizing 401K Contrib. Date:  10/9/2002  5:48 AM
Author:  jsuomi Number:  15388 of 26268

I'm concidering decreasing my 401K contribution in order to increase my savings account balance. This account is used for emergencies only (e.g. layoff, medical, etc.).

I'm contributed the maximum ammount (16%) of my monthly salary and my employer matches with 4%. I'm investing in a ML S&P500 index fund (Ticker mdsr.x).

Presently, I only have ~1 month of my monthly salary saved. With today's economy, I'd feel more comfortable with 6 months on hand. Is is Foolish to decrease my monthly 401K contribution in order to accomplish this?
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