Originally Posted by MTG#10:
Inflation is too high for your money to wither away in a savings account. Emergencies are what credit cards are for. You can always liquidate and pay the card off before interest hits.
Liquidate from a stock that’s declined in value?
Yeah, that’s 2 holes you’ve dug. No guarantee the stock you buy is in profit when your emergency arises. [Reply]
Originally Posted by MTG#10:
Inflation is too high for your money to wither away in a savings account. Emergencies are what credit cards are for. You can always liquidate and pay the card off before interest hits.
Originally Posted by lewdog:
Liquidate from a stock that’s declined in value?
Yeah, that’s 2 holes you’ve dug. No guarantee the stock you buy is in profit when your emergency arises.
I'd rather take a chance keeping all of my money in SPY than letting it wither away in a savings account. My credit cards are for emergencies only. I'm obviously more aggressive with my money than you guys though. [Reply]
If it were me, I'd convert it all to the Crypto dollar (USDT) and put it up for lend. You won't lose a penny and your loans will be picked up and paid back at 7, 14, or 28 day intervals. The blockchain guarantees it and it's insured up to 97% anyway. Right at Lewdog's loss limit. Margin traders love to borrow money.
10K loaned out at .05/day is 150/month generated through savings. And your loan pool just gets bigger and you get paid more. I've had loans out for .085 many times (but they tend to repay faster).
The money is, at most, 8 days away if you hit that emergency. [Reply]
You don't want that kind of thing having stock exposure. If you insist on sticking it in an investment account, I wouldn't go any narrower than SPY.
Potentially you could look into a bond fund. VBTLX is Vanguard's Bond Index Fund. Bonds could potentially be a play, they're not going to get much lower, as interest pretty much cannot get lower, and if interest rates rise, so should it.
Still, Savings Account.
I agree w/ the savings account. Bond funds will go down if interest rates rise. If I have 10k in 7 year treasuries paying 1.0% and the Fed raises to 1.5%. Nobodies going to buy my bonds for 10k anymore. I'll have to sell below par to make up for the half point.
The longer the maturity, the more the pain. So, typically you'd want to be hiding in short/ultra short treasuries. They pay nothing though because rates are so low. Funds have to trade to rebalance. As a person you could buy an individual bond and just hold it to maturity. Though that person wants to be potentially liquid. [Reply]
Originally Posted by eDave:
If it were me, I'd convert it all to the Crypto dollar (USDT) and put it up for lend. You won't lose a penny and your loans will be picked up and paid back at 7, 14, or 28 day intervals. The blockchain guarantees it and it's insured up to 97% anyway. Well within Lewdog's loss limit. Margin traders love to borrow money.
10K loaned out at .05/day is 150/month generated through savings. And your loan pool just gets bigger and you get paid more. I've had loans out for .085 many times (but they tend to repay faster).
The money is a day away at most if you hit that emergency.
Haven't looked into to it but if this is legit this is hands down the best idea yet. [Reply]
I just don't get why people want to play it safe. Too many easy money plays out there. Hell , you can go buy one share each of the FAANG stocks and rake in 30%
Edit: Ok so I made a watch list 1/1/2018 for the FAANG's Since then (3 years 9 months)
FB 113%
AAPL 253%
Amzn 195%
NFLX 207%
GOOG 170%
Right now it takes $7420 to buy a total of 1 share of each [Reply]
Feeling like euphoria in here. People not realizing stocks can get cut down quickly in a downturn. Don’t put cash you may need in an asset that can depreciate. Finances 101.
Do you guys have an emergency savings fund? [Reply]
Originally Posted by lewdog:
Feeling like euphoria in here. People not realizing stocks can get cut down quickly in a downturn. Don’t put cash you may need in an asset that can depreciate. Finances 101.
Do you guys have an emergency savings fund?
No, those are a waste of an appreciable asset. When credit is so easily available as well as access to liquidating a stock portfolio it makes ZERO sense. [Reply]
I have probably like three year's worth of my current bills sitting in savings. I'm a super safe kind of guy, but even I can recognize that that's not doing me much good. I think my money market account gains something abysmal like .00025% interest. [Reply]
If you can make 25% on your stocks and not need the money for 2 years you can take a 50% market crash and still be even. People hold these emergency funds for years and it's a waste. There's basically no emergency you can't use a credit card for to buy time until you liquidate an investment. [Reply]
Originally Posted by ChiliConCarnage:
I agree w/ the savings account. Bond funds will go down if interest rates rise. If I have 10k in 7 year treasuries paying 1.0% and the Fed raises to 1.5%. Nobodies going to buy my bonds for 10k anymore. I'll have to sell below par to make up for the half point.
The longer the maturity, the more the pain. So, typically you'd want to be hiding in short/ultra short treasuries. They pay nothing though because rates are so low. Funds have to trade to rebalance. As a person you could buy an individual bond and just hold it to maturity. Though that person wants to be potentially liquid.
Well I fucked that up, didn't I. Don't listen to me. Listen to CCC.
I probably fucked that up on the test in school too.
My bad. Disregard the bond fund shit.
EDIT: Obviously I'm not doing the bond fund shit. [Reply]
Originally Posted by ThaVirus:
I have probably like three year's worth of my current bills sitting in savings. I'm a super safe kind of guy, but even I can recognize that that's not doing me much good. I think my money market account gains something abysmal like .00025% interest.
Jesus :-). I had 8~10 months worth and I thought I was overdoing it. I lowered it to probably 3 months worth and bought into some ETFs with the rest. [Reply]
Originally Posted by ThaVirus:
I have probably like three year's worth of my current bills sitting in savings. I'm a super safe kind of guy, but even I can recognize that that's not doing me much good. I think my money market account gains something abysmal like .00025% interest.
That's too much. 6 months is the most you probably need.
I could probably do less too given my career stability is very good. If I got laid off tomorrow I could find a job the same day. If you won't lose your source of income for long, you can get away with less in emergency savings.
I also believe in keeping an standard emergency fund, not in stocks, because I don't believe in short term disability and will never pay for it. It's a waste of money for people who have a standard emergency savings plan.
Originally Posted by Hog's Gone Fishin:
If you can make 25% on your stocks and not need the money for 2 years you can take a 50% market crash and still be even. People hold these emergency funds for years and it's a waste. There's basically no emergency you can't use a credit card for to buy time until you liquidate an investment.
Having an emergency take you into debt is the reason for an emergency savings plan. Job layoff, injured on the job, or a huge home maintenance issue isn't something I want to take on interest debt for if I didn't have the funds to cover it.
Are you really suggesting that you can easily get 25% gains on your stocks every year? Many new investors who started in 2021 are currently negative YTD with risky stock plays. [Reply]
