scrabbler1 wrote:As an early retiree, I have tiers, or layers, of money based on speed and ease of access along with risk of principal. This is the same philosophy I used when I was working. I have some extra cash in my local bank's checking account (beyond any minimum balance requirements) in case I have some small, unforeseen expenses. If that is not enough, my next layer is an intermediate-term, muni bond fund. It has checkwriting privileges so it is a bit more readily accessible than other investments I have which lack that privilege. (I have rarely needed to tap into that.) Beyond that, I have other mutual funds which are more volatile than the bond fund or are used mainly to generate the monthly dividends to cover my expenses.
Kinda similar..... although I only keep $2 at my local credit union which pays 0.02% interest. .. just to have a local brick and mortar. Keep maybe $1K in a safe at home, and enough at Ally, which could be at the CU overnight, for perhaps 18 months needs over pension and SS. Muni in taxable at VG has enough monthly drawdown to last several years past RMD. Retired a year next week .. how sweet is this