Colleen and her husband are moving across the country in the spring. They aren't sure if they should put money into savings or retirement. Their short timeline factors into Dave's answer.
QUESTION: Colleen in Milwaukee and her husband are moving across the country in the spring. They have six months of savings in the bank, and they aren’t sure if they should put money into savings or retirement as they prepare for the move. Their short timeline factors into Dave’s answer.
ANSWER: If it’s only six months, it’s all right to pile up some extra money to facilitate the move. The trick is that, in the long-term, you need to be investing for retirement.
If you want to pile up some extra money between now and spring to make sure you’re able to do this move, there is certainly nothing wrong with that. That’s a temporary thing. You are temporarily stopping because you’ve got this huge goal of moving our family across the country.
That’s a big goal, and to have some extra cash around would give you options, maybe to take a better job than be trapped in a lesser job. I would pile up money.