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Posted: 2/22/2021 9:12:55 AM EDT
[#1]
I am also interested in this.
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Posted: 2/22/2021 9:14:22 AM EDT
[#2]
Risk tolerance? Stock market is fairly liquid (couple business days to sell and move the money). You could put it in a fund or blue chip stocks. Fairly safe, modest returns. Semi-protected against inflation.
The problem is risk is rewarded. If there was a risk-free way to get 6% on your money, everyone would do it. The higher the return, the more risk you must take on, generally. |
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Posted: 2/22/2021 9:17:08 AM EDT
[#3]
Quote HistoryQuoted: Risk tolerance? Stock market is fairly liquid (couple business days to sell and move the money). You could put it in a fund or blue chip stocks. Fairly safe, modest returns. Tax implications? I have a couple of brokerage accounts, and thought of putting it in an ETF, but was concerned with tax issues. ETA: I'm OK risking the money in an investment. |
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Posted: 2/22/2021 9:20:24 AM EDT
[#4]
You can buy Bitcoin and sell it the same day. Is that liquid enough. Ride it to $100k and then sell.
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Posted: 2/22/2021 9:20:58 AM EDT
[#5]
Probably the safest thing would be preferred stock. Something like OXLCP will give you a steady dividend monthly and will fluctuate very little in price.
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Posted: 2/22/2021 9:22:39 AM EDT
[#6]
Quote HistoryQuoted: @SpudCrushr Tax implications? I have a couple of brokerage accounts, and thought of putting it in an ETF, but was concerned with tax issues. ETA: I'm OK risking the money in an investment. Quote HistoryQuoted: Quoted: Risk tolerance? Stock market is fairly liquid (couple business days to sell and move the money). You could put it in a fund or blue chip stocks. Fairly safe, modest returns. Tax implications? I have a couple of brokerage accounts, and thought of putting it in an ETF, but was concerned with tax issues. ETA: I'm OK risking the money in an investment. Not a tax guy but it depends on how long you hold it. Over a year is much cheaper than selling under a year. However, you're taxed on the gains, so it's probably still a better deal than getting 1% in a savings account. |
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Posted: 2/22/2021 9:24:44 AM EDT
[#7]
Crypto
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Posted: 2/22/2021 9:24:56 AM EDT
[#8]
Quote HistoryQuoted: You can buy Bitcoin and sell it the same day. Is that liquid enough. Ride it to $100k and then sell. best advice in this thread, great opportunity to buy today too |
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Posted: 2/22/2021 9:25:37 AM EDT
[#9]
In.
Got in the low six figures sitting in savings untouched. May of made $150 in interest this year. |
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Posted: 2/22/2021 9:26:38 AM EDT
[#10]
Quote HistoryQuoted: Risk tolerance? Stock market is fairly liquid (couple business days to sell and move the money). You could put it in a fund or blue chip stocks. Fairly safe, modest returns. Semi-protected against inflation. The problem is risk is rewarded. If there was a risk-free way to get 6% on your money, everyone would do it. The higher the return, the more risk you must take on, generally. This. The stock market is fairly liquid. Selling an asset and moving the proceeds into a savings/checking account electronically is usually a 3 business day or less process. I keep my emergency fund in a stock market account and all of your "cash" is held in a money market account similar to a bank account. You can let it sit there forever protected like a bank account, or buy investments with it. But, just a cash balance sitting in a brokerage account is going to earn less than the 1.2% you found. So, it all comes down to the risk-to-reward. Unfortunately, you are going to have to take on some level of risk to beat out inflation and the current small percentage of interest you are getting from your bank. I personally like stable dividend stocks. I love that quarterly payment and just reinvest the proceeds into more shares (DRIP) But, you'll have to research and come up with your own strategy. Either way, I would look into signing up for a brokerage account. A lot of them have commission-free trades. The one I use currently (etrade.com) currently has free basic trades. |
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Posted: 2/22/2021 9:27:29 AM EDT
[#11]
Quote HistoryQuoted: Crypto 
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Posted: 2/22/2021 9:27:48 AM EDT
[#12]
ally account
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Posted: 2/22/2021 9:28:12 AM EDT
[#13]
Uhhhh.... where are you getting 1.2% on a savings account. That's pretty high right now.
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Posted: 2/22/2021 9:29:39 AM EDT
[#14]
stock market. Don't get swayed into chasing after the "next big thing, get in now before it SOARS 8700%!" stocks. Don't get me wrong, plenty do appreciate very rapidly, but just as many crash and burn. Put it into stable dividend kings. Create your own account at any of the popular brokerages with decent apps. You can typically have access to your $$ within 3-4 days if it becomes necessary to liquidate
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Posted: 2/22/2021 9:31:02 AM EDT
[#15]
Quote HistoryQuoted: Not a tax guy but it depends on how long you hold it. Over a year is much cheaper than selling under a year. However, you're taxed on the gains, so it's probably still a better deal than getting 1% in a savings account. |
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Posted: 2/22/2021 9:31:18 AM EDT
[#16]
Quoted: I know we're all concerned with inflation. My wife and I have a sizeable emergency fund (3 months of total expenses) set aside in a savings account. It's currently in a Money Market account earning about 1.2%, which of course is less than the current inflation rates. I'd like to find a way to have it hedge against inflation, but need to have it liquid so we can access if we need to. Anybody dealing with something similar? What bank is paying 1.2%? That’s twice the national average from what I can see on the Internet. |
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Posted: 2/22/2021 9:31:41 AM EDT
[#17]
Quote HistoryQuoted: Uhhhh.... where are you getting 1.2% on a savings account. That's pretty high right now. This? |
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Posted: 2/22/2021 9:32:50 AM EDT
[#18]
Quote HistoryQuoted: This? In before OP opened the account years ago at 1.2% and doesn't realize it's 0.4% now. |
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Posted: 2/22/2021 9:34:40 AM EDT
[#19]
Quote HistoryQuoted: stock market. Don't get swayed into chasing after the "next big thing, get in now before it SOARS 8700%!" stocks. Don't get me wrong, plenty do appreciate very rapidly, but just as many crash and burn. Put it into stable dividend kings |
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Posted: 2/22/2021 9:35:52 AM EDT
[#20]
Quote HistoryQuoted: What bank is paying 1.2%? That's twice the national average from what I can see on the Internet. Currently 1%, but back when I opened it, it was higher. Gotta do something with it. It's just sitting there, losing value. |
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Posted: 2/22/2021 9:37:59 AM EDT
[#21]
Quote HistoryQuoted: I just checked online and it appears they have lowered their rates from when I first opened my Money Market account with them. Currently 1%, but back when I opened it, it was higher. Gotta do something with it. It's just sitting there, losing value. Quote HistoryQuoted: Quoted: What bank is paying 1.2%? That's twice the national average from what I can see on the Internet. Currently 1%, but back when I opened it, it was higher. Gotta do something with it. It's just sitting there, losing value. who is "them" ? |
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Posted: 2/22/2021 9:41:55 AM EDT
[#22]
Quote HistoryQuoted: who is "them" ? |
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Posted: 2/22/2021 9:44:41 AM EDT
[#23]
Quote HistoryQuoted: In before OP opened the account years ago at 1.2% and doesn't realize it's 0.4% now. That’s what my Barclays Savings is Down to. It was at 2.20 just a couple years ago and has been steadily decreasing. Was .90 when I opened it like 7-8 years ago. |
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Posted: 2/22/2021 9:44:45 AM EDT
[#24]
Three months of expenses is a small emergency fund (in that you might need 6 months+) and a “high” yield savings account is the right place for it. The cost of losing a bit to inflation is the price you pay for the safety net. A common scenario for needing your emergency money would be the economy tanking and your job following soon behind it. If you’re invested in the stock market your emergency fund of 3 months might only be 2 months when you remove it.
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Posted: 2/22/2021 9:48:20 AM EDT
[#25]
Blockfi account. Put it in a usd stable coin but earn like 8.6% on it. Interest accumulates monthly into the crypto of your choice: btc eth link (i think)
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Posted: 2/22/2021 9:50:42 AM EDT
[#26]
Following. Right now I have it broken up into several limited high interest savings accounts, but there has to be a better way.
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Posted: 2/22/2021 9:58:08 AM EDT
[#27]
1% is pretty good for a money market acct. Bottom line - this is it for that type of account. If your goal is more yield, then the only way to do that is to move up the risk ladder. Next would be government paper, T bills, etc. There is a fund named GBIL that is the closest I've found to a cash equivalent. All short term government paper, Next would be corporate bonds, baby bonds that pay 4-8% or so. Preferred stock would be next in line. Unless you have access to fully liquid cash value life insurance, this is where it's at.
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Posted: 2/22/2021 10:05:19 AM EDT
[#28]
Quote HistoryQuoted: Three months of expenses is a small emergency fund (in that you might need 6 months+) and a “high” yield savings account is the right place for it. The cost of losing a bit to inflation is the price you pay for the safety net. A common scenario for needing your emergency money would be the economy tanking and your job following soon behind it. If you’re invested in the stock market your emergency fund of 3 months might only be 2 months when you remove it. This. |
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Posted: 2/22/2021 10:14:19 AM EDT
[#29]
“For balances up to $25,000”.
I’m currently with Viobank and American Express FSB at .5%. |
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Posted: 2/22/2021 10:25:58 AM EDT
[#30]
Quote HistoryQuoted: “For balances up to $25,000”. I’m currently with Viobank and American Express FSB at .5%. T-Mobile is 4% for the first 3,000 and 1% for everything after. AMEX was good for awhile, but has steadily declined. I have mine spread between multiple accounts like T-Mobile to maximize the interest even if it's only for 3k at a time. |
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Posted: 2/22/2021 10:30:44 AM EDT
[#31]
You should keep your emergency fund in the savings account. It might not keep up if inflation gets bad, but that's tomorrow's problem. You don't want your emergency fund in crypto or the stock market, and have your roof fall off the day all the markets are down.
Investing and hedging inflation should be left to other accounts. Emergency funds need to stay constant. |
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Posted: 2/22/2021 10:31:17 AM EDT
[#32]
Quote HistoryQuoted: @SpudCrushr Tax implications? I have a couple of brokerage accounts, and thought of putting it in an ETF, but was concerned with tax issues. ETA: I'm OK risking the money in an investment. Quote HistoryQuoted: Quoted: Risk tolerance? Stock market is fairly liquid (couple business days to sell and move the money). You could put it in a fund or blue chip stocks. Fairly safe, modest returns. Tax implications? I have a couple of brokerage accounts, and thought of putting it in an ETF, but was concerned with tax issues. ETA: I'm OK risking the money in an investment. Tax is a moot point. You're paying taxes on interest too. |
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Posted: 2/22/2021 10:39:01 AM EDT
[#33]
Everybody wants a high return with no risk.
 But the fact is, all/any return is a function of one thing: risk. |
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Posted: 2/22/2021 10:39:17 AM EDT
[#34]
Quote HistoryQuoted: 1% is pretty good for a money market acct. Bottom line - this is it for that type of account. If your goal is more yield, then the only way to do that is to move up the risk ladder. Next would be government paper, T bills, etc. There is a fund named GBIL that is the closest I've found to a cash equivalent. All short term government paper, Next would be corporate bonds, baby bonds that pay 4-8% or so. Preferred stock would be next in line. Unless you have access to fully liquid cash value life insurance, this is where it's at. I'd say have 3-6 months to cover bills and essentials in your savings then anything extra I'd ramp up into some investments like an vanguard index fund(s) and/or dividend aristocrat stocks. If inflation starts ramping interest rates back up then bonds will start to look a lot better again too. It's never a bad idea to keep some hard cash at the house too. $500-$5,000 on hand in case you can't get to a bank/atm because of power outage or something and you need to evacuate to another area. |
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Posted: 2/22/2021 10:42:11 AM EDT
[#35]
Unless someone has a better money market fund or high yield savings recommendation, you are already doing the right thing OP.
People recommending you invest your EMERGENCY FUND in stocks or crypto are either high or illiterate. |
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Posted: 2/22/2021 10:46:30 AM EDT
[#36]
How much equity do you have in your house?
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Posted: 2/22/2021 10:48:02 AM EDT
[#37]
Quote HistoryQuoted: Uhhhh.... where are you getting 1.2% on a savings account. That's pretty high right now. Good question . And what is your tolerance for risk ?? And time line . And how much sleep can you do without ? Can't hurt to wait in the current times . gd |
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Posted: 2/22/2021 10:50:35 AM EDT
[#38]
Emergency Fund
Your grandparents might have called it a "rainy day fund", but this emergency fund should contain enough money to cover 3-6 months of expenses. The money should be kept liquid, which means in a checking or savings account, allowing for quick access to cover unexpected costs, such as car repairs, job loss, or medical expenses. Your emergency fund will likely end up being tens of thousands of dollars, so it's important to resist the urge to invest it in stocks or other high interest earning accounts. The problem with stock investments is, they are not liquid and may require weeks or even months to sell your shares to convert to cash. There is also risk that market fluctuations may wipe out a large portion of the value of your investment when you need it the most. The purpose of an emergency fund is to cover large expenses without having to go into debt. While emergency funds don’t earn you interest, they do keep you from paying it. |
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Posted: 2/22/2021 10:57:41 AM EDT
[#39]
Quote HistoryQuoted: Unless someone has a better money market fund or high yield savings recommendation, you are already doing the right thing OP. People recommending you invest your EMERGENCY FUND in stocks or crypto are either high or illiterate. ^^^^^^^^^^^^^ We have a winner The people who consider the equity market as a place to park emergency funds are foolish. |
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Posted: 2/22/2021 10:59:29 AM EDT
[#40]
What is the difference between money and currency?
How you save determines if you have any savings. Remember brrrrrrrrrrrr!? |
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Posted: 2/22/2021 10:59:30 AM EDT
[#41]
If it's invested, it's not an emergency fund. The market often dips in those instances people have emergencies.
If you're comfortable with 3 months cash on hand, then save up another 3 months worth to invest with a brokerage in a "safe" index fund or ETF as a hedge on inflation. Stay in longer than one year and you'll pay the lesser capital gains tax if you do take profits. |
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Posted: 2/22/2021 11:01:21 AM EDT
[#42]
Quote HistoryQuoted: ^^^^^^^^^^^^^ We have a winner The people who consider the equity market as a place to park emergency funds are foolish. Quote HistoryQuoted: Quoted: Unless someone has a better money market fund or high yield savings recommendation, you are already doing the right thing OP. People recommending you invest your EMERGENCY FUND in stocks or crypto are either high or illiterate. ^^^^^^^^^^^^^ We have a winner The people who consider the equity market as a place to park emergency funds are foolish. But the OP themselves qualified their question with this: ETA: I'm OK risking the money in an investment. |
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Posted: 2/22/2021 11:08:31 AM EDT
[#43]
Quote HistoryQuoted: What bank is paying 1.2%? That’s twice the national average from what I can see on the Internet. OP knows 1.2% isn't keeping up with inflation. They lose purchasing power as their savings is diminished by that invisible tax called inflation. OP, forgot what Michael Burry so aptly warned us about so soon? Don't know what he warned about? Do a search on this forum. |
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Posted: 2/22/2021 11:12:46 AM EDT
[#44]
You should not be investing your emergency account... I for one think 3 months of expenses is very light for an emergency account. I consider 6 months to be minimum and a year to be ideal. I also have numerous investment accounts from stocks, market ETF fund, ROTH, and SEP. I also have a decent stash of PM’s as a store of a portion of my wealth.
You do you, but I do not think moving your emergency fund into an investment account is a wise option at all. |
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Posted: 2/22/2021 11:13:17 AM EDT
[#45]
Quote HistoryQuoted: T-Mobile is 4% for the first 3,000 and 1% for everything after. AMEX was good for awhile, but has steadily declined. I have mine spread between multiple accounts like T-Mobile to maximize the interest even if it's only for 3k at a time. Quote HistoryQuoted: Quoted: “For balances up to $25,000”. I’m currently with Viobank and American Express FSB at .5%. T-Mobile is 4% for the first 3,000 and 1% for everything after. AMEX was good for awhile, but has steadily declined. I have mine spread between multiple accounts like T-Mobile to maximize the interest even if it's only for 3k at a time. I’m dealing with mid-sixes so...
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Posted: 2/22/2021 11:15:37 AM EDT
[#46]
Quote HistoryQuoted: How much equity do you have in your house? @0hw0rd About $75k Owe $172k, roughly worth $250k. |
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Posted: 2/22/2021 11:34:01 AM EDT
[#47]
Quote HistoryQuoted: Crypto ethereum has taken a $300 hit since yesterday. sounds like a good buy opportunity. |
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Posted: 2/22/2021 11:40:47 AM EDT
[#48]
Check out VZ, XOM, SUN
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Posted: 2/22/2021 11:47:29 AM EDT
[#49]
Your emergency fund needs to be left exactly where it is, or placed in a money market account with check writing privileges.
Anything else goes against entirely what an emergency fun is supposed to be. |
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Posted: 2/22/2021 11:51:02 AM EDT
[#50]
It's an emergency fund: you lose purchasing power in exchange for the ability to buff those emergency events. I'd be ecstatic earning any returns on it without the volatility of the stock market. Your savings can be wiped out instantly on a downturn in the market. I honestly think you have a pretty sound spot for your savings.
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