Where do you keep your Emergency Fund?

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j0nnyg1984
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Re: Where do you keep your Emergency Fund?

Post by j0nnyg1984 » Thu Jul 19, 2018 12:33 pm

25k in a 1.75% money market

10k in a 1 year 2.3% CD, brand new
55k in a 1 year 2.1% CD, 6 months old
35k in a 5 year 2.2% CD, 3 years old


I should have laddered things better :oops:

stocknoob4111
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Re: Where do you keep your Emergency Fund?

Post by stocknoob4111 » Fri Mar 08, 2019 4:31 pm

I moved my EF from VMMXX to VMFXX (Federal MM) since I get a slightly higher after tax yield (VMFXX is 77% CA 9.3% Tax exempt due to the holdings) whereas VMMXX has slightly higher yield but is fully taxed at both Fed and State.

Question - if you have some bonds in taxable would you consider that to be a potential emergency fund since technically you could sell it in an emergency without too much loss and get at the money. I know there is some slight volatility in a bond fund but would you consider an emergency fund ONLY an account that has ZERO volatility and principal risk?

Trader Joe
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Re: Where do you keep your Emergency Fund?

Post by Trader Joe » Fri Mar 08, 2019 4:45 pm

TexMexIndex wrote:
Tue Jul 10, 2018 3:49 am
Is there a better place to store it than in a Vanguard Money Market Fund?

I just want to park it, don't want to have to move it multiple times.

Also I get the idea that its important to have one but often struggle with locking up that large amount of money
in such a low return. I have a 3 month fund because I have a stable career, am well insured, etc. I'll add a little more for an upcoming horizon
like when a car is getting old or a move is coming.


What do you do with your emergency fund?
My emergency fund is also in Vanguard Prime Money Market Fund (VMMXX). I am very happy with this choice.

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willthrill81
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Re: Where do you keep your Emergency Fund?

Post by willthrill81 » Fri Mar 08, 2019 4:45 pm

After having moved 2/3 of our EF that was in Wellesley Income into our total portfolio, we now have just one months' expenses in cold hard cash. We have no need for more liquidity than that.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

rage_phish
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Re: Where do you keep your Emergency Fund?

Post by rage_phish » Fri Mar 08, 2019 4:47 pm

$80k in a synchrony high yield savings account

nolesrule
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Re: Where do you keep your Emergency Fund?

Post by nolesrule » Fri Mar 08, 2019 5:12 pm

I don't know where I keep it. It's mixed in with the cash needs of my budget across a bunch of different accounts. There is no one account or sum of accounts that equals the amount of my emergency fund.

stocknoob4111
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Re: Where do you keep your Emergency Fund?

Post by stocknoob4111 » Fri Mar 08, 2019 5:31 pm

willthrill81 wrote:
Fri Mar 08, 2019 4:45 pm
we now have just one months' expenses in cold hard cash. We have no need for more liquidity than that.
1 month emergency fund?? that is quite lean, most recommendations are for 3 months minimum. Is that because you are counting on your portfolio bond allocation as well?

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willthrill81
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Re: Where do you keep your Emergency Fund?

Post by willthrill81 » Fri Mar 08, 2019 5:37 pm

stocknoob4111 wrote:
Fri Mar 08, 2019 5:31 pm
willthrill81 wrote:
Fri Mar 08, 2019 4:45 pm
we now have just one months' expenses in cold hard cash. We have no need for more liquidity than that.
1 month emergency fund?? that is quite lean, most recommendations are for 3 months minimum. Is that because you are counting on your portfolio bond allocation as well?
If our house burned down, we'd be out $1k.

If we destroyed our car in an accident, we'd be out $500.

Our HSA balance is significantly greater than our annual out of pocket maximum on our health insurance.

My employment contract is good through June, 2020, at a minimum and is about to be renewed to be indefinite.

We have a fund that we contribute to monthly to pay for home maintenance expenses, auto maintenance expenses, etc.

We have over $70k of available credit.

Consequently, we have very little need for liquidity. The "3-6 months expenses" recommendation is far from universally appropriate.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

fennewaldaj
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Re: Where do you keep your Emergency Fund?

Post by fennewaldaj » Fri Mar 08, 2019 11:24 pm

I have emergency fund in a number of places. I have some money in bank of america to cover normal expenses. I then have a layer in Vanguard money markes, Some in vanguard short term investment grade, vanguard intermediate term tax exempt, and various stock funds. I also have 20k lent to my dad who is a farmer. He has a line of credit that functions like a giant credit card so he could pay me back and switch to another form of credit quickly if we needed him to. Basically he is paying us less interest than he would pay the bank.

I don't feel the need to have much in cash type investments because both my wife and I have jobs that cover our expenses on there own. If one of us lost our job we would simply have to stop most retirement contributions while one of us was unemployed.

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abuss368
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Re: Where do you keep your Emergency Fund?

Post by abuss368 » Fri Mar 08, 2019 11:43 pm

We hold cash in a Vanguard Prime Money Market Fund and it does the job. The rate has improved over the past couple of years.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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abuss368
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Re: Where do you keep your Emergency Fund?

Post by abuss368 » Fri Mar 08, 2019 11:44 pm

Some finance recommendations will tell you that an emergency fund is not necessarily if one can raise or get access to cash when needed.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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aspirit
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Re: Where do you keep your Emergency Fund?

Post by aspirit » Mon Mar 11, 2019 8:05 pm

What ERF? Bonds? :happy
Time & tides wait for no one. A man has to know his limitations. | "Give me control of a nation's money and I care not who makes it's laws" | — Mayer Amschel Bauer Rothschild ~

cheath
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Re: Where do you keep your Emergency Fund?

Post by cheath » Mon Mar 11, 2019 8:24 pm

American Express High Yield Personal Savings account. Currently at 2.08%. Transfers to checking within a day or so if needed.

I see lots of folks using money markets, lower % accounts, CDs that tie up funds, etc. No way I believe I’ve done better than anyone on this forum, so what am I missing?

TPS_Reports77
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Re: Where do you keep your Emergency Fund?

Post by TPS_Reports77 » Mon Mar 11, 2019 9:05 pm

Our credit union rewards checking currently pays 3% up to $25k. (with a direct deposit / enough debit transactions) (First Community Credit Union)
The rest is in a Citi Accelerate Savings account that currently is paying 2.34%.

atdharris
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Re: Where do you keep your Emergency Fund?

Post by atdharris » Mon Mar 11, 2019 10:27 pm

cheath wrote:
Mon Mar 11, 2019 8:24 pm
American Express High Yield Personal Savings account. Currently at 2.08%. Transfers to checking within a day or so if needed.

I see lots of folks using money markets, lower % accounts, CDs that tie up funds, etc. No way I believe I’ve done better than anyone on this forum, so what am I missing?
I ask the same thing. If the point of an emergency fund is to keep it liquid, why would someone bother buying long term CDs or putting it in a mutual fund that pays relatively the same as a high yield account but often takes several days to liquidate? What am I missing?

I keep my savings at Amex as well, and I've looked at CDs, money market accounts at Vanguard, etc, but all of those seemed more complicated as a means to store cash when Amex earns me 2.1% and I can cash it out within a day if need be. I also keep about $6k in my taxable brokerage account at Merrill, but I usually just buy t-bills with that and can call and liquidate in 15 minutes or so if I need to sell one early.

yeahman
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Re: Where do you keep your Emergency Fund?

Post by yeahman » Mon Mar 11, 2019 10:58 pm

This has been discussed many times. We all have credit cards. We don't need access to savings on demand.

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TheAccountant
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Re: Where do you keep your Emergency Fund?

Post by TheAccountant » Mon Mar 11, 2019 11:01 pm

In a money market account at a separate bank from your checking account.

http://chrisleoonline.com/use-a-money-m ... ency-fund/
Making cents out of every dollar.

stocknoob4111
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Re: Where do you keep your Emergency Fund?

Post by stocknoob4111 » Mon Mar 11, 2019 11:23 pm

yeahman wrote:
Mon Mar 11, 2019 10:58 pm
This has been discussed many times. We all have credit cards. We don't need access to savings on demand.
many of us don't care to potentially go into debt. And there are some things that you can't pay with a credit card like the mortgage or rent. So in my view a credit card is not a substitute for a EF.

cheath
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Re: Where do you keep your Emergency Fund?

Post by cheath » Tue Mar 12, 2019 2:13 am

I was shocked to see that my American Express High Yield Savings at 2.X% is about as good as many other people here, considering no risk and very quick liquidity.

While my investment knowledge certainly pale’s in comparison to everyone else’s, when it comes to emergency funds, I think I’m actually keeping up with you guys! Again, shocked, but I’ll take a win where I can get one! :D

cheath
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Re: Where do you keep your Emergency Fund?

Post by cheath » Tue Mar 12, 2019 2:22 am

Jack FFR1846 wrote:
Tue Jul 10, 2018 1:57 pm
$4k in 4 savings accounts at DCU at 5.12%.
Want to look into this. If that’s a regular ol savings account that any schmoe can get, without a ridiculous minimum, that interest rate is KILLER! DCU stands for what?

yeahman
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Re: Where do you keep your Emergency Fund?

Post by yeahman » Mon Mar 18, 2019 12:50 am

stocknoob4111 wrote:
Mon Mar 11, 2019 11:23 pm
yeahman wrote:
Mon Mar 11, 2019 10:58 pm
This has been discussed many times. We all have credit cards. We don't need access to savings on demand.
many of us don't care to potentially go into debt. And there are some things that you can't pay with a credit card like the mortgage or rent. So in my view a credit card is not a substitute for a EF.
Credit cards allow cash advances. There is no potential for debt lasting more than a couple days. A credit card is not a substitute for an EF. A credit card is a substitute for an on-demand EF. You don't need a savings account.

Abarn
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Re: Where do you keep your Emergency Fund?

Post by Abarn » Mon Mar 18, 2019 11:10 am

Marcus Goldman Sachs online savings account. Currently at 2.25%

monsterid
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Re: Where do you keep your Emergency Fund?

Post by monsterid » Mon Mar 18, 2019 11:15 am

Check out Rising Bank, currently 2.45% better than Marcus / Ally etc on pure rate at least.
Last edited by monsterid on Mon Mar 18, 2019 11:34 am, edited 1 time in total.

Tdubs
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Re: Where do you keep your Emergency Fund?

Post by Tdubs » Mon Mar 18, 2019 11:33 am

monsterid wrote:
Mon Mar 18, 2019 11:15 am
Check our Rising Bank, currently 2.45% better than Marcus / Ally etc on pure rate at least.
If you don't want a checking and savings account all in once place, this looks like the winner!

monsterid
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Re: Where do you keep your Emergency Fund?

Post by monsterid » Mon Mar 18, 2019 11:35 am

Been using it for about a month, it's solid.

I kept my checking at the big bank, just easier.

yogesh
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Re: Where do you keep your Emergency Fund?

Post by yogesh » Mon Mar 18, 2019 11:55 am

Withdrawal in following order!
CMA: FDIC (0.37%) 2 months expenses
CMA: MM (2.38%) 6 months expenses
Taxable: VTMFX
Retirement: TR2040
Emergency: FDIC | Taxable: VTMFX | Retirement: TR2040

Garfieldthecat
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Re: Where do you keep your Emergency Fund?

Post by Garfieldthecat » Mon Mar 18, 2019 12:44 pm

VUSXX , Vanguards Treasury Money Market fund. With state income taxes it worked out a little better then their other MM funds.

Broken Man 1999
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Re: Where do you keep your Emergency Fund?

Post by Broken Man 1999 » Mon Mar 18, 2019 1:19 pm

We have never had an emergency fund. We had fairly stable careers, except for my wife near the end of her working days.

We are fortunate we never had a need for an emergency fund. If we had an emergency, we have many ways to collect up sizable amounts of near-cash. This lackadaisical attention to an emergency fund need has worked for us for nearly 48 years.

Still, if we had a true emergency, we could count on many ways to address the need:
1. We have a bunch of I-Bonds, all held over five years. This would involve some pain as all our I-Bonds have fixed rates over 3%.
2. We have credit cards with ridiculous credit limits (totally not needed, but, there they are).
3. I have check-writing established on my Vanguard Federal Money Market fund. Normally it has a very low balance, but I'm thinking of establishing an alternate fund to draw on. Probably be Vanguard Short-term Treasury Index fund. Well, I just did. Very easy to do online!
4. We could borrow from DDs, as I know they keep a lot of cash in very low interest accounts, against my repeated counsel. :( : All I have to do is to continue being a great father and grandfather. :D

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

chazas
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Re: Where do you keep your Emergency Fund?

Post by chazas » Mon Mar 18, 2019 8:09 pm

Like some others, it’s in layers.

I keep 5000 above projected monthly bills in our checking account.

I transfer anything leftover at the end of the month to an associated savings account that yields 1.8%.

When I accumulate enough extra cash in the savings account, I buy CDs under 2 years at the highest rate I can find either at a well-regarded internet bank or somewhere local where I can walk into a branch and deal with them, so I have a CD ladder that goes out about 18 months currently.

Finally I keep 100K in no-penalty CDs at Purepoint, currently at 2.6%,

It’s a lot of cash, but we’re saving to build a house - done the construction loab/mortgage thing before and not too keen to do it again.

radeon962
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Re: Where do you keep your Emergency Fund?

Post by radeon962 » Mon Mar 18, 2019 9:24 pm

Amex savings @ 2.1%. 6 months is kept here.

dalmatiandan
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Re: Where do you keep your Emergency Fund?

Post by dalmatiandan » Mon Mar 18, 2019 10:57 pm

cheath wrote:
Tue Mar 12, 2019 2:22 am
Jack FFR1846 wrote:
Tue Jul 10, 2018 1:57 pm
$4k in 4 savings accounts at DCU at 5.12%.
Want to look into this. If that’s a regular ol savings account that any schmoe can get, without a ridiculous minimum, that interest rate is KILLER! DCU stands for what?
Digital Federal Credit Union in Worcester, MA.

Some small donation to join the credit union, then it’s all pretty easy. Every person gets one primary savings account, and it’s actually 6% on first $1,000 with a $5 minimum. We’ve been there a few years now and both the rate and the maximum have crept up steadily. Perfect spot for a portion of our emergency fund.

Dan

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ruralavalon
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Re: Where do you keep your Emergency Fund?

Post by ruralavalon » Tue Mar 19, 2019 7:04 am

We are age 73, retired, and have no pension or annuity, no savings account or CDs, no cash allocation in our portfolio, and we have no designated emergency fund.

We have:
1) a couple months worth of expenses in a joint checking account;
2) high limit credit cards;
3) a significant taxable account;
4) Roth IRAs; and
5) the ability to quickly access our entire portfolio at any time for any reason without penalty.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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