> most personal finance wisdom advises keeping no more than 6 months - 1 year of expenses in liquid savings
I was unclear: by "liquid" I didn't mean in cash equivalents like an emergency fund. I just meant "not locked away until retirement, under threat of penalty" the way tax-advantaged retirement accts are.
At the very least, I'd expect that most people with a 401k have a ton of assets tied up in houses that are often to big for them after eg their children move out: downsizing and unlocking those assets is a pretty common sense move in the context of "not having enough saved for retirement".
I think the high level point I'm going for here is that I'm not sure that 401k balance is a good proxy for overall retirement savings, as implied by the comment I originally replied to. I don't have the data on this though
I was unclear: by "liquid" I didn't mean in cash equivalents like an emergency fund. I just meant "not locked away until retirement, under threat of penalty" the way tax-advantaged retirement accts are.
At the very least, I'd expect that most people with a 401k have a ton of assets tied up in houses that are often to big for them after eg their children move out: downsizing and unlocking those assets is a pretty common sense move in the context of "not having enough saved for retirement".
I think the high level point I'm going for here is that I'm not sure that 401k balance is a good proxy for overall retirement savings, as implied by the comment I originally replied to. I don't have the data on this though