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jprice4608
LSU Fan
Member since Dec 2011
944 posts

6 months of Bills in a Savings Account
After this amount of money is secured....Would you invest ALL additional money?


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
36462 posts

re: 6 months of Bills in a Savings Account
I would have put it all in a Roth to start with, just invested very conservatively.

And six months is for most people a bit much.

But yes, I'd throw anything extra into my Roth and invest in something like a retirement fund.


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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
9057 posts

re: 6 months of Bills in a Savings Account
Yes, and frankly, six months liquid might be a bit much. But, that depends entirely on your personal situation.


b-rab2
LSU Fan
Lafayette
Member since Dec 2005
11333 posts

re: 6 months of Bills in a Savings Account
I probably have about 2 months for "emergency fund" and the other 6-8 months is invested in a bond fund that earns 5%. It can be sold and withdrawn in a few days if the funds are needed.


Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
9057 posts

re: 6 months of Bills in a Savings Account
I have about two months liquid as well, with the rest in equities. My job is extremely stable, so I only need enough liquid to cover the week or two it would take me to liquidate equity investments.

The only reason I have a full two months is in case I have a large expense that won't take a credit card


Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
30047 posts

re: 6 months of Bills in a Savings Account
quote:


The only reason I have a full two months is in case I have a large expense that won't take a credit card


Like a home renovation?
This post was edited on 1/16 at 9:11 am


seawolf06
LSU Fan
Raleigh, NC
Member since Oct 2007
6213 posts

re: 6 months of Bills in a Savings Account
Pay off all debts first (except house), then invest. That's the simplest method to follow.


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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
9057 posts

re: 6 months of Bills in a Savings Account
quote:

Like a home renovation?


It's a shame someone like Lowes or Home Depot doesn't do that kind of work in house. Imagine the points you would be swimming in buying $1k gift cards at Office Depot at 5x...

Sorry, I had to rub it in


Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
30047 posts

re: 6 months of Bills in a Savings Account
Ya, I hear about them but no one goes out of their way to recommend them...I believe they are more expensive too.
This post was edited on 1/16 at 9:49 am


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cfa626
New York Yankees Fan
Port Allen
Member since Apr 2016
542 posts

re: 6 months of Bills in a Savings Account
Would there be penalties for withdrawing from this bond? Can you point me in the right direction on this?
I'm currently throwing about $1500 a month into a savings account drawing 0.7%. I don't want to risk it so I don't invest, and I'd like access to it if needed, but I'd like to earn a little more.


b-rab2
LSU Fan
Lafayette
Member since Dec 2005
11333 posts

re: 6 months of Bills in a Savings Account
You have to hold it for 6 months (initial investment). Penalty is $50. I'm in PONCX and PONDX. It has monthly distributions in which I just reinvest the dividends.


dltitan
LSU Fan
Member since Sep 2013
182 posts

re: 6 months of Bills in a Savings Account
Google Dave ramsey


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meeple
USA Fan
Member since May 2011
4552 posts

re: 6 months of Bills in a Savings Account
I have about $10k also sitting in a savings account. Is VBTLX a good index fund to keep this in, while also having relatively easy access (couple days or so)?


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bayoudude
LSU Fan
Houma
Member since Dec 2007
19085 posts

re: 6 months of Bills in a Savings Account
quote:

Yes, and frankly, six months liquid might be a bit much


I must be in the minority but only having a 6 month cush in savings would scare me.


Hawkeye95
LSU Fan
Member since Dec 2013
20293 posts

re: 6 months of Bills in a Savings Account
quote:

I must be in the minority but only having a 6 month cush in savings would scare me.


I only keep about 1.5 months in savings. I can liquidate some bonds if I need more $$, and it would be a doomsday scenario if my wife and I both lost our jobs.

But if I didn't have that working for me, I would want 9 months.


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cfa626
New York Yankees Fan
Port Allen
Member since Apr 2016
542 posts

re: 6 months of Bills in a Savings Account
I looked up PONDX and it took me to this:

PIMCO Income Fund

I know zero about investing. Do bond funds like this lose money?
I don't want to be at risk of losing any money. I am OK with small returns. Just want to know what is better than the 0.7% my savings gives me.

The hypothetical $10k investment on the link I posted seems good. I realize that's over a 10 year period.


tigersnipen
LSU Fan
Member since Dec 2006
1782 posts

re: 6 months of Bills in a Savings Account
I struggle with this too. I have about 1 year worth of emergency savings. I hate having it sit in the 0.75% savings account. I am looking into some of the bond funds listed below. I am partial to vangaurd but the PONDX and PONCX look interested too.


b-rab2
LSU Fan
Lafayette
Member since Dec 2005
11333 posts

re: 6 months of Bills in a Savings Account
They can... but its unlikely IMO.


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Tigahs2007
MS
Member since Dec 2013
98 posts

re: 6 months of Bills in a Savings Account
Wouldn't it be better to park in a Roth? The funds you put in can be retrieved later with no penalty.


JohnnyKilroy
New Orleans Pelicans Fan
Member since Oct 2012
15545 posts

re: 6 months of Bills in a Savings Account
What are the main differences between PONCX and PONDX and PONAX?

I get that PONDX has no sales load and a lower overall expense ration between the two. Why would someone invest in PONAX and/or PONCX over PONDX? What am I missing here?


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