So I have a big expense coming up in the next couple of weeks that I really wasn’t expecting. I’ll need around $10-$20k in total I imagine.
I have around $15k in my savings account which I’m hoping will cover it but I’m guessing that it won’t.
I also have $11k in my brokerage account (VTSAX) that’s been there since 2015 so it’s effectively gained 10% despite the huge loss we’ve all seen in the last year. I also have ~$40k in my Roth IRA contributions and ~$60k in my pre-tax 401k.
I also bought $10k in i-bonds earlier this year thinking I wouldn’t need the money soon but that’s neither here nor there because it’s inaccessible. Lesson learned: try not to tie up your emergency fund if at all possible.
I’m thinking about the best place to draw from in case I need more cash for my upcoming expense.
The cheapest place would be to borrow from my 401k but then I got to thinking… would I borrow from my 401k to put money into a brokerage account? Because that’s effectively what I’d be doing if I didn’t take money from my brokerage. The tax hit would be rather minimal from cashing out the brokerage because I only earned ~$1k from that account.
Any thoughts? Where would you withdraw from?