How I learned to love my low yield emergency fund

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BrandonBogle
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Joined: Mon Jan 28, 2013 11:19 pm

Re: How I learned to love my low yield emergency fund

Post by BrandonBogle » Sun Jun 28, 2020 10:41 pm

TechFI wrote:
Sun Jun 28, 2020 8:23 pm
First option, doesn't work for me because all my 401k bonds are in TIAA Trad and I would lose my 3% vintage. I will admit I may reconsider if I ever hold bonds in 401k. But for now, my bonds are going to i-Bonds and maybe EE-bonds.
I would personally be fine with using the TIAA Traditional as holding my emergency funds, if I had access to it. That is a very different beast than most bond funds people can get and I wouldn't hesitate to use it.

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DesertMan
Posts: 239
Joined: Tue Dec 07, 2010 12:54 pm

Re: How I learned to love my low yield emergency fund

Post by DesertMan » Mon Jun 29, 2020 8:01 pm

BrandonBogle wrote:
Sun Jun 28, 2020 8:03 pm
DesertMan wrote:
Sat Jun 27, 2020 8:19 pm
hudson wrote:
Sat Jun 27, 2020 5:16 pm
DesertMan wrote:
Sat Jun 27, 2020 5:03 pm
Attention PenFed credit-card holders: there is currently a promotion now and if you need it you might want to do so ASAP.
DesertMan,

I didn't see anything except $20 off on Turbotax. More information if possible. Many thanks!
I got the PenFed offer by email two months or so ago. It did not appear to be targeted. If you had a PenFed credit card open a couple of months ago check your email for one with the subject line "Increase your Financial Freedom."

Failing that I think they are offering promos on new cards. Now may be the time to grab that.
Isn’t that a balance transfer with a 3% transfer fee and a promo rate of 0% for 12 months? The 3% transfer fee really hurts that offer vs. other credits cards that still occasionally offer me 1% transfer fees for around 12-15 months at 0%.
Yes, but as you can see from the CNBC article I linked to, beggars can't be choosers right now. If you have excellent credit and want to snag a 0% no fee offer you can try applying for a new card... if it's not already too late to do so.

If the 3% is really hurting you, though... maybe you're carrying too much debt going into a recession.

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BrandonBogle
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Re: How I learned to love my low yield emergency fund

Post by BrandonBogle » Mon Jun 29, 2020 8:23 pm

DesertMan wrote:
Mon Jun 29, 2020 8:01 pm
If the 3% is really hurting you, though... maybe you're carrying too much debt going into a recession.
I think you misunderstand me. 3% is overpaying. I regularly get 1% balance transfer fee. Not as good when as when they were capped (I took $100k on BT and put them in high yield CDs for a few years), but still good. I usually stick to 1% with a 0% rate for over 12 months. I've got 0% (on purchases though) until Sept 2021 right now, so about another year and a quarter.

No unreasonable debt here, but not afraid of safe leverage either.

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DesertMan
Posts: 239
Joined: Tue Dec 07, 2010 12:54 pm

Re: How I learned to love my low yield emergency fund

Post by DesertMan » Mon Jun 29, 2020 8:25 pm

BrandonBogle wrote:
Mon Jun 29, 2020 8:23 pm
DesertMan wrote:
Mon Jun 29, 2020 8:01 pm
If the 3% is really hurting you, though... maybe you're carrying too much debt going into a recession.
I think you misunderstand me. 3% is overpaying. I regularly get 1% balance transfer fee. Not as good when as when they were capped (I took $100k on BT and put them in high yield CDs for a few years), but still good. I usually stick to 1% with a 0% rate for over 12 months. I've got 0% (on purchases though) until Sept 2021 right now, so about another year and a quarter.

No unreasonable debt here, but not afraid of safe leverage either.
If you can carry that much debt and still have high enough FICO to get more credit then maybe you don't need my mere-mortal advice about Itty-bitty savings accounts. :happy

Edit: if cheap leverage is what you seek, maybe you should consider an M1 Finance Plus membership. Their margin rate is 2%. (You know what you're doing so no lecture about being careful with using margin...)

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