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To all those with $150k+.. what are you thinking?? Having that much liquid seems foolish!
by lolwutf 13y ago
To all those with $150k+.. what are you thinking?? Having that much liquid seems foolish!
- sukuriant 13y agoThey might be including their money in the stock market / mutual bonds / etc?
- foldor 13y agoMine is liquid at the moment because I will be buying a house this year. I'd rather not lock it in to anything that makes it difficult to retrieve. This includes an RRSP mind you. That's liquid for house buying in Canada.
- stephencanon 13y agoWhen we were renovating our house, we kept about an order of magnitude more liquid than usual. Writing checks for $O(15k) on a weekly basis will cause you to do that.
- ChuckMcM 13y agoWell one of the interesting things could be house buying. A number of people during the dot com meltdown were buying houses and waiting to exercise their options at the last minute because they wanted the price to be as high as possible. Except that when it came time to buy their stock value had plummeted. Forcing them to either sell more than they intended, or abandon the house purchase, or restructure the purchase. People with that experience might sell their assets, hold the money in their account until everything has settled, and then move forward. Also folks who sell stock options often have big tax bills to pay. But rather than slosh that money into and out of something that pays .5% interest they are just leaving it in their account until sending it to the IRS on 4/15. The bottom line is it is that the answers look different from two sides of the bank balance :-) I don't think I have ever left that much money in my account for any length of time, but I do recall the CEO of a company I helped get started put the $1.5M series A check into their account while waiting to transfer it over to the newly established corporate accounts. He joked the bank staff treated him very well after that :-).
- jack-r-abbit 13y agoyep. It took a couple months to assemble the funds for the down payment on my house. You also need to figure in that a lot of lenders will look unfavorably on you if the down payment money was just recently deposited into your account. They'll want to know where it came from. So it would not be unheard of for a person to have $150K in their checking for a few months as they house shop and seek a loan. And while mine wasn't anywhere near $1.5M, I did notice a slight glimmer in the eye of the teller that brought up my account balance. Before we could even begin the transaction I came in to do, she asked me if I'd thought about switching to a different account type because of that balance. I had to cut her off and tell her that today's transaction would be a large cashiers check because I had just bought a house. :)
- joebo 13y agoAs someone who is averse to risk and wants 1-2 years of equivalent salary reserves, what are some other options?
- sliverstorm 13y agoCDs, low-risk/diversified mutual funds, money market funds. Bonds. T-Bills.
- matt-attack 13y agoI have maybe $80k in cash savings. I feel w/ $900k in index funds, it's reasonable to keep ~10% in cash. ps. I'm old.