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Swifty 
LSU Fan
Member since May 2012
906 posts
| Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:24 pm)
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
2651 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:26 pm to Swifty)
3 months savings account, 6 months in PBSMX.
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foshizzle
LSU Fan
Member since Mar 2008
25476 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:30 pm to Swifty)
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
19785 posts
 Online
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:37 pm to foshizzle)
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
906 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:37 pm to foshizzle)
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
906 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:38 pm to Janky)
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
2651 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 3:39 pm to Swifty)
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
1306 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 4:01 pm to Swifty)
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
2651 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 4:03 pm to Swifty)
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
6689 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 4:29 pm to Janky)
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
Boise State Fan
Boise, ID
Member since Mar 2007
22589 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 6:03 pm to Swifty)
6 months savings in an online savings account. And emergency cash on hand.
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Will Cover
Boise State Fan
Boise, ID
Member since Mar 2007
22589 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/12/12 at 6:05 pm to Lou)
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. (Posted on 12/13/12 at 10:04 am to saderade)
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
1677 posts
| re: Where do the Gurus of MT park their rainy day fund. (Posted on 12/13/12 at 10:23 am to buddhavista)
Money market drawing .9 interest.
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