yeah, if you don't have one already, put some in a Roth and put the rest in savings. One great thing about a Roth is that it can be considered it's own emergency cash fund. You can take your contribs out with no penalty....so if the shit truly hits the fan (eg, you need a new liver or you're going to die) you can access that money. It may fawk up your retirement plans if you draw it out like that, but does retirement planning really matter if the alternative is an early death? Prolly not. That's how I look at my Roth. It's not huge. I'm 36 and it has about $35,000 in it. If I need $ in a life-or-death emergency, it's there....otherwise it's staying there until I retire. Much better this way than a 401(k), where taking out loans is frought with danger, penalties and the tendrils of the IRS.