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Replies: 62
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Oculus Spirit [75717]
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More advice needed...emergency fund.
Jan 24, 2022, 12:18 PM
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What types of places do y'all use to hide money from yourself that isn't a retirement account?
I've got different stuff in various places but too much just sits in a bank hardly growing at all.
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All-In [46825]
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equity***
Jan 24, 2022, 12:19 PM
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All-In [40656]
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You just cashed out 90% of yours to build a wall***
Jan 24, 2022, 1:41 PM
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All-In [46825]
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100% for 3 walls***
Jan 24, 2022, 1:44 PM
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Orange Blooded [3123]
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I have a lot in crypto
Jan 24, 2022, 12:21 PM
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Has worked out well so far, but not for the faint of heart. Mostly DOT and use it at auction to get additional coins as a reward. Have never sold, just held and have been happy with the return. If you hold for more than 1 year you only pay capital gains, if you has the dumb and use American apps and report it.
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All-In [31891]
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What happens if it crashes the day before you have...
Jan 24, 2022, 12:24 PM
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an emergency?
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Orange Blooded [3123]
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Far more likely that the dollar crashes
Jan 24, 2022, 12:29 PM
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There are more people committed to crypto than any business or any currency. There are very risky coins, I just choose to put money into stable coins that I don’t believe have any risk of crashing.
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All-In [31891]
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You can't honestly really believe that's true***
Jan 24, 2022, 12:31 PM
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Orange Blooded [3123]
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Which part?
Jan 24, 2022, 12:37 PM
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I think Bitcoin will always outperform and outlast the dollar. For sure. The dollar has lost value every single year since we left the gold standard. Bitcoin has gained every year. Yes, there are some swings up and down, but you can’t really believe we can sustain this insane debt. At some point inflation is going to ruin the dollar. It’s a ticking time bomb.
The dollar is only the reserve currency around the world because we have a strong military and it’s assumed we will pay our debt. Well, we got our butts kicked in Afghanistan and China has a better military than us now, and at some point we will have to choose between paying debt and having Monopoly money or defaulting.
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All-In [31891]
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The dollar has lost value very year since we left....
Jan 24, 2022, 12:44 PM
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the gold standard?
Against what has the dollar lost value?
Frankly, thinking bitcoin will outlast the US Dollar is a hard opinion to respect. And yes, I think debt level is insane...but doesn't change my opinion that the US Dollar is much more stable than crypto. If for no other reason, than when one is in an emergency financial situation, there is very little that can be purchase in cypto that can be useful to get out of the emergency.
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Orange Blooded [3123]
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the dollar is just a tool used to get stuff
Jan 24, 2022, 12:48 PM
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So when we talk about the value of a dollar we mean, what can it buy? Over the last 10 years… less than 75% of what it could buy previously (has, bread, milk, etc). With inflation going through the roof, the 10,000 you have in a money market account today will buy a fraction of of what it could buy today in just a few years. The idea with investments is to beat inflation. Now with inflation growing to double digits… that becomes a more challenging task.
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Heisman Winner [135867]
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Inflation through the roof?
Jan 24, 2022, 12:53 PM
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Lulz, the Carter Administration says hold my beer
Call me when it hits 17%
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All-In [31891]
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Inflation is high now, but has been extremely....
Jan 24, 2022, 12:54 PM
[ in reply to the dollar is just a tool used to get stuff ] |
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low over last 15 yrs or so.
To judge the stability of a currency as a function of inflation vs the volatility of crypto as a function of that same currency makes no sense to me.
On one hand, you're saying the currency isn't dependable and on the other you're valuing your crypto based on that same currency.
When you need a new roof put on your house...can you easily use DOT to pay for that? And even if you could (which you can't) you're going to value the transaction on the US$ to the contractor.
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Orange Blooded [3123]
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I don’t view cryptocurrency as currency.
Jan 24, 2022, 12:59 PM
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I view it as an investment. While the dollar continues to lose value every year, and it has lost between 2 and 17% a year since before most of us were born, I want as few dollars sitting around as possible. If I can buy some crypto one day for x dollars and sell it 10 years later for 400% more, unless inflation over the 10 years was more than 400%, I win.
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Hall of Famer [24051]
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Re: the dollar is just a tool used to get stuff
Jan 24, 2022, 12:57 PM
[ in reply to the dollar is just a tool used to get stuff ] |
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What happens to cryptocurrency if governments actually believe it is a threat to their own currency, and then make it illegal to accept cryptocurrency for the purchase of goods and services?
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Orange Blooded [3123]
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It’s not a currency.
Jan 24, 2022, 1:06 PM
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I can’t go buy a cup of coffee at Dunkin for ETH. It’s almost impossible for a government to regulate anyway. Unless they somehow ban trading it, which anyone could just use a VPN to get around, there’s no stopping it. And there’s no reason to ban trading it, other than “it’s a threat to our currency we just print whenever we want.”
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Hall of Famer [24051]
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Re: It’s not a currency.
Jan 24, 2022, 1:31 PM
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If governments make it illegal to use then companies will not accept it for payment. The only value is its utility as a currency.
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Orange Blooded [3123]
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It actually has a lot of other uses
Jan 24, 2022, 2:34 PM
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There are chitcoins like DOGE that have no meaning or real value other than currency, but for example MANA helps develop VR technology and OCEAN helps create ways to stay private on the web. Plus, if nothing else even when it’s illegal it’ll still be great for buying and selling other things that are illegal.
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All-In [42151]
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But you better believe...
Jan 24, 2022, 2:27 PM
[ in reply to It’s not a currency. ] |
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If the United States government has a problem with it and isn't getting its cut, they're going to find a way to #### this up.
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Oculus Spirit [79429]
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They're going to try to push everyone into their own CBDC
Jan 24, 2022, 2:33 PM
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coin like China has attempted with the digital Yuan. It will go about as well as it has there with almost nobody wanting to use it.
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Orange Blooded [3123]
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Right? Like the whole concept
Jan 24, 2022, 3:04 PM
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Is for it to be easy to move in a very private way, avoiding taxes, fees, legal problems, etc. a country making its own coin defeats the purpose.
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Oculus Spirit [79429]
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I think that's why many will want to try to kill it
Jan 24, 2022, 3:25 PM
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They'll attempt to get rid of cash for those same reasons. Fortunately, most of the people making policy on this can't even work a smart phone, so I suspect their efforts will be in vain. Hopefully, anyway.
I bet they'll try to ban cold wallets in an effort to keep everything on the exchanges so they've got better oversight, combined with an FDIC insured stable coin.
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All-In [42151]
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Re: Which part?
Jan 24, 2022, 2:26 PM
[ in reply to Which part? ] |
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I can't disagree that there are plenty of shaky signs to point to with the dollar, but in the spirit of this thread and emergency funds, all this crypto stuff seems to be just one hacker or world crisis wiping you clean... or, as flow has already stated, when you really need it in an emergency.
Someone is going to get left holding their ##### when this crypto stuff bottoms out. Cheers to those who are profiting now and letting someone else set up for that fall.
I mean, we literally have one of these things named after a dog meme. I don't trust our government but I trust em a lot more than THAT.
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Orange Blooded [3974]
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I’m not sure if you are defining emergency fund in the way that most people do.
Jan 24, 2022, 4:31 PM
[ in reply to Which part? ] |
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Emergency fund and most financial people’s terms would be money that you might need to spend in the near future if something comes up. You don’t want it in something that might lose value in the short term because you might need it in the short term. Bitcoin is down 20% since the beginning of January. How is that a good idea for him to use as an emergency fund?
The dollar has definitely outperformed that so far this year.
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All-In [31891]
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Wait...I looked up Polkadot. It's been around less than....
Jan 24, 2022, 12:38 PM
[ in reply to Far more likely that the dollar crashes ] |
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1 year and it's lost about 50% of it's value over the period.
In December it lost 30% and YTD in Jan it's down 36%.
Sounds like a perfect place to park an emergency fund.
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Orange Blooded [3123]
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I bought at 12
Jan 24, 2022, 12:45 PM
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It’s now around 16 or 17. Got up over 50 at one point. But I use it at auction and get coins as a reward, like I said. I’ve gotten a lot of MOVR and GLMR from auction and paid zero for it so whatever I end up selling it for is all profit, along with anything the DOT sells for over 12.
Like I said, there are massive swings, it’s not for the faint of heart. But it’ll go back up. It always does. Look at the 10 year chart for Bitcoin and tell me you think it’s done for. It’s just in a dip.
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All-In [31891]
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But again...the question was about an emergency fund....
Jan 24, 2022, 12:50 PM
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which is long-term savings needing to be fairly liquid to use when an emergency hits to refrain from going into debt.
Anyways...you do you. In my opinion, any investment, let alone crypto, isn't the place for an emergency fund.
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Orange Blooded [3123]
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Yea… that’s why I like it
Jan 24, 2022, 12:55 PM
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My plan is to hold until I retire, but if I needed to could sell today and have it hit my bank by Wednesday.
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All-In [31891]
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And if you bought $20k worth when it opened....
Jan 24, 2022, 12:56 PM
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you would have about $10k worth now.
Of course, if you're strategy is to time buying only at the bottoms and selling only at the peaks, I'm sure you can do much better. Market timing is super easy and a very reliable strategy.
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Orange Blooded [3123]
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It opened at $2.90
Jan 24, 2022, 1:10 PM
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If you bought 20k at opening, you’d have $117,241.
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All-In [40656]
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Don't do this
Jan 24, 2022, 1:42 PM
[ in reply to I have a lot in crypto ] |
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Its all fake money with no actual real world value.
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All-In [31891]
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I agree, but you can see how passionately many...
Jan 24, 2022, 2:13 PM
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feel about it.
It just makes no sense to me.
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Oculus Spirit [79429]
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You don't see how smart contracts can streamline
Jan 24, 2022, 2:45 PM
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business transactions, eliminate fees/costs, all with greater efficiency and security?
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Oculus Spirit [79429]
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lol, someone recently moved like $2 billion worth of Bitcoin
Jan 24, 2022, 2:25 PM
[ in reply to Don't do this ] |
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for under $1 in transaction fees. You don't get that with banks. I do get a chortle out of the boomer takes though, there's a ton of real world utility in many different projects. Smart contracts will be able to eliminate tons of fees and headaches associated with all sorts of transactions.
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CU Medallion [60043]
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All-In [31891]
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If you're strictly talking about an emergency fund, then....
Jan 24, 2022, 12:24 PM
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I just stick that in a separate savings account/money market account.
The only way to make any kind of real return is to either risk the money or tie it up for some extended period. Neither of those options is the right fit for an emergency fund.
If you really need to make it hard for yourself to spend it easily, then put it with a different bank than your normal checking account so it at least takes a little work (check) to transfer it.
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CU Medallion [60043]
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yup. we bank with Chase, but our savings
Jan 24, 2022, 12:25 PM
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is with Fidelity. Its not that easy to transfer and it makes you think about your decision when you do go to transfer. Works great for us.
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All-In [46825]
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This is why I bury my extra equity 2 feet deep
Jan 24, 2022, 12:28 PM
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in my yard.
Moving that dirt really makes you reassess if you need that extra pack of mountain dew
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Hall of Famer [21935]
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Marcus by Goldman
Jan 24, 2022, 2:01 PM
[ in reply to If you're strictly talking about an emergency fund, then.... ] |
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has a good on-line high interest savings account. We park our emergency fund there.
Although, I have been reducing the allocation of doll hairs here relative to equities. I'm mid-way through my re-allocation and may speed that up once we find bottom.
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All-In [34486]
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Just a brokerage account
Jan 24, 2022, 12:34 PM
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It's a 3 day transfer so if'n I really need the money I have to wait 3 days
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All-In [46825]
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I also have a lot of money tied up in beanie babies
Jan 24, 2022, 12:36 PM
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and collectable nascar plates
HTH
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Oculus Spirit [79201]
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Deep in my rectum
Jan 24, 2022, 12:40 PM
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You really gotta want it if you're going to use it.
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Orange Blooded [3123]
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110%er [7004]
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Ours is in an Ally "high interest" savings account.
Jan 24, 2022, 12:40 PM
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Lol at high interest. I think it's currently .5%. However, that's better than the 0% offered by Wells Fargo.
IMO, you need an emergency fund to be stable and easily accessible. I can have Ally transfer money to my main account in 2 days. That's enough to cover any emergencies but separate enough that its really separate.
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CU Medallion [55747]
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Money market. Not easy to get to either.
Jan 24, 2022, 12:41 PM
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It doesn't earn any interest, but I can't just get to it easily either. It's just there.
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Heisman Winner [135867]
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I opened a savings account with
Jan 24, 2022, 12:45 PM
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American Express back when they were giving 2% interest and have it set to put some in every month.
I think 19B® mentioned it in here.
I hardly remember I have it and you have to transfer the money to your regular account so it at least makes you think before you spend it.
The best thing ever was back when I had a normal full time job, I could put money directly into an account at the credit union before it hit my pay check. It was a line item deduction on the stub but it was like it wasn't there since it didn't show up in my check. Every time I got a raise I upped my deposit by 1/2 of it so I still felt like I got a raise and was increasing savings.
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CU Medallion [73569]
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stocks and crypto***
Jan 24, 2022, 1:03 PM
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CU Medallion [60228]
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there's little available that's legal and legit
Jan 24, 2022, 1:04 PM
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but if you have a little moral flexibility, doors open.
Human Trafficking, for instance.
Drug muling.
Those sorts of things.
And most transact in cash money. ">
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Lot o points [163012]
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How much you need in your emergency fund?
Jan 24, 2022, 1:42 PM
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Let's say you decide six months of expense - so compute that.
Now how important is that money to you as an investment vs. being a true backup for lack of income? or other catastrophe?
The advice here is put it somewhere where it is a little of an effort to get to, but it needs to be pretty liquid and stable.
That is the conservative accountant speaking, btw.
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All-In [46825]
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So go all in on a new truck. Got it.***
Jan 24, 2022, 1:45 PM
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All-In [40656]
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This is a problem I currently have
Jan 24, 2022, 1:44 PM
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I have a house fund and a savings fund, both sitting in a bank collecting pennies each month. I do not want to risk losing it, so I refuse to put any of it in the stock market. Maybe I need to move it over to a money market account, or buy bonds of some sort. Another option that I have heard is to buy CD's or invest in stocks with dividend payouts.
We purge into these accounts very rarely, but I still like having the access to the funds immediately if I ever need it.
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Heisman Winner [105551]
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CD's
Jan 24, 2022, 1:48 PM
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EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEZZZZZZZZZZZZZZZZZZZZZZZZZZZZ NNNNNNNNNNNNUUUUUUUUUUUUUUUTTTTTTTTTTTTTTTTTTZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ!!!
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Lot o points [163012]
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CD's with rolling maturity dates work. Just takes a while
Jan 24, 2022, 1:49 PM
[ in reply to This is a problem I currently have ] |
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to build up the stream of maturities.
So let's say you can get a 5 year CD at 3%. You do that and wait three months and get another. or six months or a year. Whatever works for you. But eventually you will have CD's maturing every three/six/year so they are more liquid.
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CU Medallion [73569]
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put them in an EFT.
Jan 24, 2022, 2:03 PM
[ in reply to This is a problem I currently have ] |
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unless you need that money within a yr, especially with the mkt plummeting. you are guaranteed at least 10% within a yr, depending on which eft you pick.
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All-In [40656]
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lol no
Jan 24, 2022, 2:17 PM
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That #### is a ponzi scheme.
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110%er [7004]
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Really? My understanding is that those were one of the safer
Jan 24, 2022, 2:53 PM
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investment vehicles. Why don't you like them? (I assume he meant ETF/Exchange Traded Funds)
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All-In [40656]
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I see the confusion now
Jan 24, 2022, 2:59 PM
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I assumed he meant NFT. I believe he meant ETF.
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110%er [7004]
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Orange Blooded [2818]
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Re: More advice needed...emergency fund.
Jan 24, 2022, 2:17 PM
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Vanguard Index funds, and I have 3 credit cards. Each card is used for specific things, but If it’s truly an emergency the credit cards will cover it and require a small payment each month. That buys time to take money out of investments/funds.
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Oculus Spirit [75717]
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Just don't use more than like 33% of
Jan 24, 2022, 3:02 PM
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any one card or your utilization will be too high and hurt your credit score.
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All-In [40929]
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I use short term bond etfs
Jan 24, 2022, 3:00 PM
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not good the last couple of years, but they generally earn about 2% per year.
Blackrock icsh is one. It's mostly treasury bonds. There are a lot of municipal funds too.
igsb is a short corporate bond etf
I'd rather lose a dollar then watch a savings account with 10 grand earn 3 cents.
ETFs are traded like stocks and you can get your money in a day or so.
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All-In [26968]
TigerPulse: 96%
Posts: 44823
Joined: 7/6/10
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Emergency fund? That's what a credit card is for.
Jan 24, 2022, 3:39 PM
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Then if you have enough in your checking account at the end of the month, you pay it down some.
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All-TigerNet [11207]
TigerPulse: 100%
Posts: 14767
Joined: 6/29/01
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A few that come immediately to mind...
Jan 24, 2022, 5:17 PM
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For any of the RSU's that I've gotten as bonuses at work, I just let 'em sit there when they mature. Yes, I have a #### ton of stock in my own company, but it's my "I'm having the deck on my house replaced and want to pay cash" or "we're having the basement finished and I need to bridge a down payment until my refi-with-cash-out comes thru" money (both recent, real scenarios). It just sits there doing whatever the stock is doing and I don't worry about it at all.
Since I've maxed my 401k contributions and the wife and I make too much for alot of the IRA options, we're over-seeding permanent life insurance. Simply put (and probably wrong) we're paying more up front so it can grow with the account then be able to draw on it during retirement without affecting the death benefits.
And I guess you could count the kids' education funds?
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