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Market funds are a very bad place to keep money that might be needed soon. Ibonds provide a safer place to keep funds you might need in an emergency. You should
by orev 5y ago
Market funds are a very bad place to keep money that might be needed soon. Ibonds provide a safer place to keep funds you might need in an emergency. You should never have emergency funds in the market.
Also, assuming a government bailout will come to the rescue is a pretty risky strategy.
- lotsofpulp 5y agoI bonds are also not for funds needed soon. I see some utility for them for funds that might be needed after 12 months, but before whenever one feels comfortable that public equity markets will be bailed out. They do sound like a good option for those that want to be prepared for emergencies 12 months into the future. >Also, assuming a government bailout will come to the rescue is a pretty risky strategy. Of course, this is just my opinion, but I feel like it is risky to not assume a government bailout. As far as I can see, the options are bailout of public markets, or revolution.
- mint2 5y agoI’d really hope people are planning in advance for emergencies. It’s not an emergency if one knows it’s coming next month. Everyone should have some emergency plan or fund if at all feasible.