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Replies: 36
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Oculus Spirit [75780]
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Did the fed lower rates and I some how missed it?
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Apr 4, 2024, 8:30 AM
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I woke up to an email saying my online bank savings rate went down .1%. That's annoying.
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All-In [42976]
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Re: Did the fed lower rates and I some how missed it?
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Apr 4, 2024, 8:40 AM
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Oculus Spirit [97799]
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Lol. Checking account interest.....
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Apr 4, 2024, 8:44 AM
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Oculus Spirit [75780]
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Wait, are you laughing at the rates a checking account will draw or
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Apr 4, 2024, 8:50 AM
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are you saying you checked your rates?
I will admit I don't know the best place to hide my emergency fund.
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Heisman Winner [105702]
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I'm with you. Ally has my emergency fund and it gains a little bit in interest
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Apr 4, 2024, 9:05 AM
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and is easy to put more in or get some out if I ever needed to.
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Heisman Winner [136176]
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Made me look
Apr 4, 2024, 9:08 AM
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So far my Amex hi yield hasn’t changed
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Oculus Spirit [97799]
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Both. About the only draw left for a "savings" account in a bank is the FDIC
Apr 4, 2024, 9:11 AM
[ in reply to Wait, are you laughing at the rates a checking account will draw or ] |
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insurance, and I'm not even sold on that.
I have a savings account with a LOT of money in it, just under the FDIC limit, and it draws $1.50 a month in "interest". It's a freaking joke. Problem is the places to park money with the best returns, are also places where you can't access it easily and are subject to losing it easier. So there's that as well.
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Oculus Spirit [81129]
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Yes, but...
Apr 4, 2024, 9:16 AM
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Those places should be all FDIC insured, right?
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Oculus Spirit [97799]
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My 401K isn't.
Apr 4, 2024, 9:31 AM
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Bitcoin isn't. Gold isn't. Real estate is for the house value, but not the overall property value, or land holdings.
All offer FAR higher returns, with the caveat that the money is less accessible, and NOT insured.
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Oculus Spirit [81129]
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All-In [27184]
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Oculus Spirit [97799]
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Probably because the account is structured for higher returns because your
Apr 4, 2024, 9:33 AM
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4yo kid doesn't need access to the money for many years. You can lock it up in a CD, or a high value account and generate a more interest. But even those accounts in banks underperform inflation since 2022. By miles.
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All-In [40946]
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even a checking account pays like .01%
Apr 4, 2024, 9:40 AM
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which is a couple of hundred dollars a month on 250k
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Hall of Famer [22967]
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Check your math
Apr 4, 2024, 10:16 AM
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$250,000 x .0001 = $2/mo
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All-In [27184]
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Heisman Winner [136176]
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Oculus Spirit [75780]
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I'm not even sure he understands the pool of money I'm
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Apr 4, 2024, 10:01 AM
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even talking about.
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Oculus Spirit [75780]
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Hall of Famer [21978]
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Orange Blooded [2821]
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Re: I'd rethink your strategy
Apr 4, 2024, 10:28 AM
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I don’t understand the whole easy access to money thing. I’ve never needed a huge sum instantly, not payable by credit card. What service/investment structure are people using where you can’t get money in 24 hours, or at most, a couple of business days?
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Hall of Famer [21978]
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i'm sure everyone is different
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Apr 4, 2024, 10:34 AM
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and everything is tied to folks' comfort levels w/ risk...
me being a cocky young guy...I have half my e-fund in an ETF that pays a fat dividend and the other half in a TBTF high-yield savings account.
to get even more cocky, I leverage the monies in that ETF in a margin account to play in options...lol.
so wading through all that, it'd take me probably 2-4 days to get my hands on all of it, if I got in a SERIOUS pinch.
but I did that because, to your point, my CC can cover the balance of that $ and buy me some time to move money around, if needed.
I probably won't be doing this when I'm 55. Unless I've hit my objectives and I have half a stack to burn...then I'll be at the casino errday.
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All-In [27184]
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Banking with Ally has me a little concerned about that because there are no
Apr 4, 2024, 10:35 AM
[ in reply to Re: I'd rethink your strategy ] |
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physical locations, and if you want actual cash, you have to wait for a check to arrive. But at the same time there are other options that could work in a pinch. I also have an account with 5/3rds so if I do need immediate cash, I can grab it, or transfer money from Ally to it and pull it out as soon as it clears.
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Hall of Famer [21978]
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well, ideally
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Apr 4, 2024, 10:37 AM
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you have two month's opex, minus mortgage and bills and online paid shidd, in cash sitting in a safe with your precious metals.
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All-In [27184]
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What type of libertarian would I be if I didn't have a Valcambi bar in my
Apr 4, 2024, 10:43 AM
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bunker safe.
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Hall of Famer [21978]
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Re: What type of libertarian would I be if I didn't have a Valcambi bar in my
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Apr 4, 2024, 10:48 AM
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Heisman Winner [136176]
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110%er [7004]
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I bank with Ally and ran into this problem last week.
Apr 4, 2024, 11:02 AM
[ in reply to Banking with Ally has me a little concerned about that because there are no ] |
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We purchased a car. The down payment had been sitting in our Ally account. The wire from the Ally account took much longer to process than they estimated. That was in part due to an error on their part that I only caught after 1hour+ on the phone with Ally customer service a day after the wire was due to arrive.
It was ultimately nbd because it was just a car, not an emergency, but it did give me pause.
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Hall of Famer [22967]
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Re: Both. About the only draw left for a "savings" account in a bank is the FDIC
Apr 4, 2024, 10:19 AM
[ in reply to Both. About the only draw left for a "savings" account in a bank is the FDIC ] |
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Spread that money around:
$50-75k in an easy access checking account (my Wells Fargo pays pennies in interest)
Put the rest in a high yield savings like Ally or VMFXX (paying 4-5%). You can then swing $50-100k back and forth to your low-yield account when needed
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All-In [40946]
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Put it in a brokerage account
5
5
Apr 4, 2024, 9:16 AM
[ in reply to Wait, are you laughing at the rates a checking account will draw or ] |
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Right now brokerage money market accounts are paying about 5%. Fidelity SPAXX is 4.96%
I get paid once a month. Pay my monthly bills and put the rest in my brokerage account except for a few hundred dollars just in case.
I use credit cards for everything to get 1-3% back and I pay my statement amounts on the due dates out of the brokerage account.
I do similar with my business. All excess cash goes into a brokerage account. I generally buy bonds and ladder them out about 6 months. It only takes a few minutes max once a month. I keep half my reserves in bonds the other half in S&P and short term reserves in a money market fund. Bonus money for me and employees goes into a bond that is due in December.
When I transfer money into my brokerage account it is available instantly. When I transfer back to my checking account it happens in a couple of days max and if I do it early I can pick the day for it to happen.
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CU Medallion [60244]
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mine's in a Schwab money market fund
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Apr 4, 2024, 9:42 AM
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gets 5.2%
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All-In [27184]
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You were on here the other day dunking on retirement savings.
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Apr 4, 2024, 9:05 AM
[ in reply to Lol. Checking account interest..... ] |
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Are you just determined to kill yourself at 65 so you don't have to worry about money generation today?
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Oculus Spirit [81129]
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One days its hot, the next its cold.
Apr 4, 2024, 9:17 AM
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Tiggity, are you a woman?
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Oculus Spirit [97799]
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If I want to generate retirement income, parking money in a
Apr 4, 2024, 9:24 AM
[ in reply to You were on here the other day dunking on retirement savings. ] |
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bank "savings account" will ensure I'm a brokeazz old man. I get a whopping $1.41 interest in a business savings account we have. Now I could lock that money up, and get a whopping 2%. NONE of this matches current inflation, and we've lost thousands to inflation. This is a 6-digit account.
There was a time when banks used inflation to bring IN money, through nice interest returns, concurrent with higher interest rates. Today, they don't need that, they have investment reserves they rely on now, and don't need actual cash like they once did. So they don't NEED to give you 5% or 6% on a savings account, like they did decades ago. They're getting 12-15% on investments already. Most people "saving for retirement" are also leveraged like the banks, in investments anyway. That's why a bank is the LAST place you'd want to park money to "save" for "retirement".
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Heisman Winner [136176]
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Wow! I bet your bank loves you
Apr 4, 2024, 9:47 AM
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My retirement funds are in a professionally managed fund that earned 6.5% last quarter and 18% since inception
That high yield account is for when I need a new car or want to remodel the kitchen or whatever
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Hall of Famer [21978]
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now we're getting somewhere
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Apr 4, 2024, 10:04 AM
[ in reply to If I want to generate retirement income, parking money in a ] |
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business savings account is nowhere near what everyone else here is talking about.
those sorts of savings accounts are like the freezer in the garage. good space to store some extra meat, as a reserve, but in no way shape or form are you planning to live the rest of your life on it.
everyone here (at least what I've gathered) is talking about high yield savings accounts as the best options to park liquidity, typically reserved for +/- 6 months opex and/or parking places for cap needed for big purchases (i.e. car, reno, moonshine still, whatever).
no one - and maybe I'm giving my fellow joungers too much credit here - is parking retirement money in a savings account.
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110%er [7004]
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Bingo.
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Apr 4, 2024, 10:12 AM
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Tiggity is whining about making no interest in his bank account and also seems to miss that he could be making significantly more interest in a high-interest savings account with no downsides based on his stated purpose.
Bizarre.
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Hall of Famer [21978]
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I'll give him the benefit of the doubt
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Apr 4, 2024, 10:31 AM
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in that he's bichin bout a biz savings account (which again...has to be better options, I just don't know). and a man bichin at the banks is a friend of mine ha
surely a man of his stature has an e-fund making more than thousandths of a percent a month on his rainy day fund.
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Replies: 36
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