<prompt> Human: Im a software engineer in a MCOL area. I went through my numbers for the year and Im trying to figure out what my next steps are in terms of retirement and investing. My stats are as follows:nbsp;Income: 70kExpenses: 1.6k in monthly expenses includes a 300 car payment, 13k 1.7 for the next 3.5 years 2.5k in misc expenses annuallyAssets 36k cash 9k 401k vanguard target date fund 5.5k roth ira 3 fund portfolio 2.5k brokerage currently just cash...nbsp;At the moment I am contributing up to the company match in my 401k. After subtracting pre-tax deductions, taxes, my ira contribution and all expenses, I still have 23k cash at the end of the year. If I max out the 401k Id have 13k.nbsp;On paper, I think it would be fine to max it out. Job security is good and there is potential for sizeable pay bumps in my locationelsewhere. However, although I dont foresee an immediate need for the cash, I am a little uneasy about committing such a significant portion of my income to retirement accounts. The idea of having so much money tied up in non-liquid assets is a little intimidating.nbsp;The other issue is that I dont have any defined life goals. I know that some day Id like to own a house, but Im not sure where or when. I also want to become financially independent before the typical retirement age. I dont necessarily want to retire by the time I hit 40, but it would be nice if I had the ability to be more selective with what I dowho I work for, and if I could take time off when I wanted to. Im not sure if putting more cash in a 401k would inhibit these goals, or other goals that may pop up later down the road.nbsp;Is there ever a time where you would elect to put cash in a regular brokerage account instead of maxing a 401kira? And for a bonus question, how much cash do you keep? Any more than an emergency fund enough to pay regularforeseeable expenses?  <response>: Max the 401k.The typical best practice is to have an emergency fund easily liquidated of 3-6 months of expenses, which it appears you have with the 36k in cash. This is in case of an unexpected job loss or major financial disaster medical bills, car explodes, etc.. If it makes you more comfortable, you can do a little more, but beyond that, you are basically just unnecessarily losing money to inflation if you keep more cash.Then, you should max your 401k and IRA contributions. Any remaining money can go into a good mutual fund. Or, if you want, put some aside for fun. Ever wanted to travel internationally or own a cool car or go to the Super Bowl? Throw some money into an account just for those types of things. You can afford it with your excess. With your current track, you will be in a very good place for years to come. 