Savings vs. Investments - which do I use?
I have about two months income replacement saved up in my EF/IR fund. I have a similar amount saved up in my medical expenses, which is way more than I need, particularly now that my husband is on hospice. I also have off-budget money, much of which is invested (non-retirement accounts), but a large chunk of which is sitting as "cash" since I'm going to lose income for I don't know how long in the near future.
So the question is: Do I spend down my savings first, or do I dip into the off-budget money? I *think* the better thing is to use up the money in my bank accounts first, but that feels really scary. Dipping into the off-budget money feels less scary, but probably has a much more negative long-term effect on my financial stability/security.
I also asked this in my journal, but was advised to ping @nolesrule who gives good advice, and figured this might be a useful thing for others who don't look at journals.
First - I am sorry for the difficult time that you are going through right now. I guess all I can do is send wishes that your husband is as comfortable as possible.
Clarifying questions - you are asking is it better to use money in a traditional savings account or to cash out investments from taxable investing accounts. When will you be spending this money? Is it during a period when you will have no/low income? You mention that you don't know for certain the time period that you are talking about. Is this because you are planning on going back to work at some time or will you be reaching a point where you will be receiving a pension or begin to draw from things like IRAs/401(k)s? Will you be inheriting any IRAs/401(k)s/etc from your husband?
I don't have any answers, but these are some of the factors that will go into the process of determining which is a more ideal solution.