Am I over complicating my EF?

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BogleMelon
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Am I over complicating my EF?

Post by BogleMelon » Thu Dec 06, 2018 2:10 pm

Below are the list for my EF and checking accounts:
- Charles Schwab checking: Main checking account (around $5K), also like their no ATM fees worldwide and I use it.
- BoA checking: Keeping a minimum balance of $100! Having a small amount of my paycheck directed there to avoid monthly fees. Reasons I keep it to get extra rewards since my first ever CC is linked to it, plus sometimes using their notary service and cash deposits (very rarely for cash deposits)
- Ally Saving: Around 17K "to be increased by another $20K after getting the money back from a Citi account. Citi was opened to only churn their bonus, then will get the money back to Ally and close it
- I bonds: His: $5K - Her: $5K

Total liquid cash: $50K

My Roth IRA's is with Vanguard.

Am I complicated things? (I feel I am)
Advice to where to consolidate?
How about moving everything to Fidelity including my Roth IRA for simplicity?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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willthrill81
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Re: Am I over complicating my EF?

Post by willthrill81 » Thu Dec 06, 2018 2:36 pm

It doesn't seem very complicated at all, but it may be unnecessarily complicated. I think that two 'places' for an EF are fine. We keep 1/3 of our EF in hard cash (i.e. paper bills in a safe location) and 2/3 invested in Vanguard's Wellesley Income fund in a Roth IRA. I think that keeping it all in a high-yield savings account like Ally is fine as well. An advantage of savings accounts is that, as you have done, you can chase after new account bonuses to juice your yield, assuming you have the needed time and inclination.

Our checking account is usually very lean because I just don't see much need for funds there. If you really want money now, I find that a combination of hard cash and a couple of credit cards from different issuers is hard to beat, and the former in particular has come in very handy on several occasions that weren't 'emergencies'. Also, I could sell our stake in VWINX and move the funds into my checking account in under a week. How many instances are there when you need significant funds faster 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

BogleMelon
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Joined: Mon Feb 01, 2016 11:49 am

Re: Am I over complicating my EF?

Post by BogleMelon » Thu Dec 06, 2018 2:49 pm

willthrill81 wrote:
Thu Dec 06, 2018 2:36 pm


Our checking account is usually very lean because I just don't see much need for funds there. If you really want money now, I find that a combination of hard cash and a couple of credit cards from different issuers is hard to beat, and the former in particular has come in very handy on several occasions that weren't 'emergencies'. Also, I could sell our stake in VWINX and move the funds into my checking account in under a week. How many instances are there when you need significant funds faster than that?
So you basically suggesting that I keep my checking account under the current amount? How much balance you would suggest to not go over?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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willthrill81
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Location: USA

Re: Am I over complicating my EF?

Post by willthrill81 » Thu Dec 06, 2018 2:54 pm

BogleMelon wrote:
Thu Dec 06, 2018 2:49 pm
willthrill81 wrote:
Thu Dec 06, 2018 2:36 pm


Our checking account is usually very lean because I just don't see much need for funds there. If you really want money now, I find that a combination of hard cash and a couple of credit cards from different issuers is hard to beat, and the former in particular has come in very handy on several occasions that weren't 'emergencies'. Also, I could sell our stake in VWINX and move the funds into my checking account in under a week. How many instances are there when you need significant funds faster than that?
So you basically suggesting that I keep my checking account under the current amount? How much balance you would suggest to not go over?
It depends on your comfort level. I've heard of people who weren't comfortable having less than $100k in their checking account. We usually have less than $1k. It's your choice, but I don't see what $10k there is doing for you now or what it would ever do for you that either hard cash or a high-yield savings account wouldn't do better.
“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

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