Where do the Gurus of MT park their rainy day fund. | TigerDroppings.com

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Swifty
LSU Fan
Member since May 2012
947 posts

Where do the Gurus of MT park their rainy day fund.


I have my 6 months of living expenses built, but its sitting in cash with very little return. Where/how do you keep it?








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Janky
LSU Fan
Team Primo
Member since Jun 2011
7244 posts

re: Where do the Gurus of MT park their rainy day fund.


3 months savings account, 6 months in PBSMX.





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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
29612 posts

re: Where do the Gurus of MT park their rainy day fund.


Roth, of course. Tax-free returns and you can get the contributions whenver you want penalty-free.

ETA: Once you get a house and get some equity into it, you can get a HELOC and just not use it. If you need a thousand on short notice you can tap that if you prefer.



This post was edited on 12/12 at 3:32 pm


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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
20966 posts

re: Where do the Gurus of MT park their rainy day fund.


quote:

Roth, of course. Tax-free returns and you can get the contributions whenver you want penalty-free
But can't you only put 5k in per year?






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Swifty
LSU Fan
Member since May 2012
947 posts

re: Where do the Gurus of MT park their rainy day fund.


Roth is maxed. I contribute 8% to IRA, save another 8% into a taxable investment account. I own a house and am making extra payments.

Never heard of a HELOC before though.



This post was edited on 12/12 at 3:42 pm


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Swifty
LSU Fan
Member since May 2012
947 posts

re: Where do the Gurus of MT park their rainy day fund.


quote:

3 months savings account, 6 months in PBSMX.


so you have 3 months in savings AND 6 months in a corporate bond? Total of 9 months?







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Janky
LSU Fan
Team Primo
Member since Jun 2011
7244 posts

re: Where do the Gurus of MT park their rainy day fund.


quote:

HELOC


Home Equity Line Of Credit. Like a checking account backed by the equity in your home, except they charge interest on the borrowed amount.






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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1600 posts

re: Where do the Gurus of MT park their rainy day fund.


All of mine is in savings. Seeing the news that interest rates will likely be low until at least 2015 is really increasing the urgency that I get a firm grasp on investing.





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Janky
LSU Fan
Team Primo
Member since Jun 2011
7244 posts

re: Where do the Gurus of MT park their rainy day fund.


quote:

so you have 3 months in savings AND 6 months in a corporate bond? Total of 9 months?


Yes. My wife likes to shop. Just kidding. I probably don't need that much, but I do.






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Lou
LSU Fan
out here in the middle
Member since Aug 2005
6815 posts

re: Where do the Gurus of MT park their rainy day fund.


quote:

Yes. My wife likes to shop. Just kidding. I probably don't need that much, but I do.
Doesn't hurt. I have about three months in cash, but would like 6 months or even a year. For some reason it feels psychologically better to have that sitting there. I've been contributing to a Roth for about ten years so I have enough in there if worse came to worse. I would only touch retirement as a last resort though. Had a $20K HELOC but I am closing on a refi next week so that is going away. (15 yr / 2.875% by the way)






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Will Cover
Southeastern LA Fan
Bangor, ME
Member since Mar 2007
24469 posts

re: Where do the Gurus of MT park their rainy day fund.


6 months savings in an online savings account. And emergency cash on hand.





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Will Cover
Southeastern LA Fan
Bangor, ME
Member since Mar 2007
24469 posts

re: Where do the Gurus of MT park their rainy day fund.


Which lender did you use for your re-fi?





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buddhavista
Member since Jul 2012
3543 posts

re: Where do the Gurus of MT park their rainy day fund.


quote:

Roth, of course. Tax-free returns and you can get the contributions whenver you want penalty-free
But can't you only put 5k in per year?

yeah, and if you make more than something like 170k you can't contribute at all.

i have cash parked in a money market account with my bank.



This post was edited on 12/13 at 10:05 am


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matthew25
Ole Miss Fan
Member since Jun 2012
3359 posts

re: Where do the Gurus of MT park their rainy day fund.


Money market drawing .9 interest.





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