Emergency Fund

Peace of mind is worth more than cash value to me. I ensure I have 8k min in my checking by the time I'm paid.

10k is prob only 3 months expenses but I have a stable job and my wife could work asap if needed.

I personally hate having money not working for me.

If you don't already have a Roth, use it for that.



After a few years, the accumulated gains will far offset losses you might incur if you happen to withdraw in the middle of a big downturn.



The key is to slowly phase it over. Don't dump all of your money in it at once, so part of it can build earnings without the full risk exposure.


Also, use a balanced fund, not all stock.

I use Vanguard's STAR fund.

I suggest

Lord Abbott Fund

Day Trade

If you are in br, I think pelican credit union is giving 4% on up to 10k and a little less than 1% on anything over.

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I do not understand the need for a savings account, what expense cannot be put on a credit card while you unwind your brokerage account? It takes what, 5 days max to get the money?

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It's a good point - the only thing that leans against that is some crippling financial crisis that affects the brokerage accounts (or freezes them) but doesn't affect FDIC accounts - at least not immediately.

Crazier things have happened. I'm only about $12k in savings - the balance of my "emergency" fund is in stocks. I'm going to move more of my actual "emergency fund" savings into a Vanguard vehicle - then just roll that into excess investment.

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the only thing that leans against that is some crippling financial crisis that affects the brokerage accounts (or freezes them) but doesn't affect FDIC accounts

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Correct me if I'm wrong, but Brokerage accounts are also insured up to a $$$ amount...

So I highly doubt those would be frozen and FDIC insured account wouldn't

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This is exactly what I do, and no I don't understand why anyone uses savings accounts these days either provided you can put it in a Roth, or in a brokerage account if you've run out of contribution limits everywhere else.

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Here's a question, because it is currently bothering the shite out of me. (I already max my 401k match and ROTH for both the fiancee and myself). Right now I have 10k in a "high yield" online savings account.

Where would you put house down payment savings? Looking to buy before 2017, most likely late 2015 or in 2016.

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I convinced my wife to put into a brokerage account. You really only need MAYBE a month in cash, everything else can be easily reached in that amount of time.

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So go into a taxable investment account? Seems like the only option left besides where I'm currently located. Obviously, the risk is loss of principal, etc. etc. etc.

ETA: If I do this, I might have to move some stuff around for tax efficiency. Doesn't look like the popular options of STAR, Wellesley or Wellington look particularly efficient, but maybe I'm a dumby.

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Correct me if I'm wrong, but Brokerage accounts are also insured up to a $$$ amount...

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I don't think stocks, bonds and mutual funds are insured - maybe if your brokerage buys your CDs - those might qualify.

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So I highly doubt those would be frozen and FDIC insured account wouldn't

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You can't envision a situation where the trading floor and brokerage accounts are frozen, but ordinary deposit accounts remain active (for a while - no question a run will shut them down, too)? I agree that it appears unlikely, but certainly not unimaginable.