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[quote=Anonymous][quote=Anonymous]I have about $270,000 in cash. My total net worth is around $1 million, in the form of paid-off $700,000 apartment, a paid-off $50,000 car, and the cash.

I am self-employed in a rapidly-changing industry and my income feels very shaky.  Last year, I made $140,000, and my income over the last decade has ranged between $50,000-$170,000 .

I only spend about $35,000 per year, so $270,000 represents close to eight years of expenses.  However, my rationale is that I want an emergency fund of $100,000 so I can handle anything that comes along (that’s probably a conservative amount, but I am very conservative and risk-averse).

I also think I need another $150,000 in case my business fails or is meaningfully affected to the point that I need to do something else.  Almost all businesses need some start-up capital and I think that gives me a good buffer since I have no idea even what the new business would be, let alone how much capital it would require.

That leaves $270,000 - $250,000 = $20,000 that I do feel comfortable investing in stocks (though, I would prefer to do that in a regular brokerage account instead of a 401(k) so I can access it if needed – again, as mentioned, I’m risk-averse).

So my question is if this seems reasonable or if I am being overly conservative?  Truthfully, I don’t mind if I have to work five extra years because my approach is conservative.  I am much more scared of having a major disruption or financial squeeze somewhere along the way.[/quote]

I'm confused, do you have a retirement account on top of the cash, or is this it?[/quote]

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