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I advise everyone to talk to a licensed financial advisor. Do you really foresee needing 6-months expenses in cash? In my case, I keep 1-months expenses in cash
by yardie 5y ago
I advise everyone to talk to a licensed financial advisor. Do you really foresee needing 6-months expenses in cash? In my case, I keep 1-months expenses in cash. And everything else is shoveled into funds, stocks, and securities. Then I have 30 days to figure out how to balance my expenses and converting stocks to cash (~2-3 days).
A .1% APY is losing money everyday in a 6% inflation economy.
- toolz 5y agoI do the same, losing out on 5 months of savings gaining interest is likely to be a very significant amount of lost potential. Compared to a doomsday scenario where I might lose half of my investments and job at the same time, which would mean most of the world is suffering from the same and I would just have to buckle up for the ride, leaving as much of my investments alone as humanly possible and wait for _maybe_ a year or two for the market to recover, as a somewhat realistic worst case scenario.
- 88913527 5y agoIf you have an unexpected large expense, like some needed home repair, it can easily be a few months of ordinary expenses. The fact that I normally live off of $3.5k/month is untethered from the cost of a roof replacement. You do pay a price for keeping the additional months of liquidity, but to some it's still worth it.
- yardie 5y agoI'm trying to imagine a large unexpected home repair >$3000 that isn't covered by typical planning or insurance and nothing comes to mind. Emergency roof replacement is managed by insurance (you're paying for it). And a scheduled, expensive, non-emergency, usually involves months of planning and permit pulling. Except for a bail money, how many high-ticket items aren't covered by insurance?