Where are you storing your emergency fund money?

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nix4me
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Re: Where are you storing your emergency fund money?

Post by nix4me »

in VTI in my Brokerage account
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anon_investor
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Re: Where are you storing your emergency fund money?

Post by anon_investor »

armeliusc wrote: Fri Dec 18, 2020 11:27 am Series I Saving Bond: inflation protected.
+1.
Charon
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Re: Where are you storing your emergency fund money?

Post by Charon »

pseudoiterative wrote: Fri Dec 18, 2020 4:49 pm some emergencies to consider are less individual and more exotic systemic risks.
For those of us who don't live in a Jason Bourne movie... our emergency funds are in high-yield savings accounts, CDs, I-bonds, etc. If I've lost all ID, everyone I know has died, and the US government has collapsed, I'll have concerns that are unlikely to be addressed by Yen under my mattress. That said, I'll keep a few Yapese Rai stones buried in my yard just in case :wink:
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Cheez-It Guy
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Re: Where are you storing your emergency fund money?

Post by Cheez-It Guy »

Marseille07 wrote: Fri Dec 18, 2020 6:28 pm
Cheez-It Guy wrote: Fri Dec 18, 2020 6:15 pm
Marseille07 wrote: Fri Dec 18, 2020 11:26 am Really depends on how much EF and your liquidity needs. Can you pay your CC from savings? Might be possible but I haven't really explored it as I've always paid off from checking.
You can. I do. Marcus Savings auto draft.
Thank you. That's good to know. Savings are quite useful, esp. without that 6-times-a-month ACH thing that's not enforced currently due to covid.
Indeed. I have three Chase cards auto paid each month from savings and have had it set this way for several months with no issues. Marcus imposes no limit on number of withdrawals.
Marseille07
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Re: Where are you storing your emergency fund money?

Post by Marseille07 »

Cheez-It Guy wrote: Fri Dec 18, 2020 8:41 pm
Marseille07 wrote: Fri Dec 18, 2020 6:28 pm
Cheez-It Guy wrote: Fri Dec 18, 2020 6:15 pm
Marseille07 wrote: Fri Dec 18, 2020 11:26 am Really depends on how much EF and your liquidity needs. Can you pay your CC from savings? Might be possible but I haven't really explored it as I've always paid off from checking.
You can. I do. Marcus Savings auto draft.
Thank you. That's good to know. Savings are quite useful, esp. without that 6-times-a-month ACH thing that's not enforced currently due to covid.
Indeed. I have three Chase cards auto paid each month from savings and have had it set this way for several months with no issues. Marcus imposes no limit on number of withdrawals.
Marcus is the best. I'm actually looking at their checking offering as well, supposedly coming sometime 2021.
mark39
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Re: Where are you storing your emergency fund money?

Post by mark39 »

I went through an "emergency" this year with unemployment for 8 months Most of what pessimistic bogleheads have said over the years turns out to be true. I was and am one of this pessimists but I do recognize everyone's situation can be different. I'm single, no children, rent my apartment, am in good health, and had little job security over the years. Never made good money. Couple things to keep in mind:

1. Nearly every article talks about having enough of an EF to cover bare bones expenses in the case of job loss and the first thing you should do is cut unnecessary expenses. Great advice but once you cancel any subscriptions, cable and stuff like that it is really hard to cut the budget much more. If your unemployment period is extended you WILL NOT be able to stay inside your home and not spend money on anything but rice and beans. There can be expenses with job hunting as well. I think it's prudent to add at least 5% (probably more) to to your monthly expenses when figuring out the amount in your EF.

2. Is it likely the perfect storm can hit you specifically? Say a major medical expense and job loss in the same year? Nobody knows for sure but don't rule out the possibility because it certainly isn't unheard of.

3. The larger your assets, the less cash and equivalents you probably need. But as has been pointed out here many times, job loss and market downturns often happen in the same periods for obvious reasons. As for medical expenses, we all get sick and many have accidents. Medical bills can be huge even for the insured. Houses need major work every so often.

I wrestle with my EF all the time because my income is low and I really would like to have as much money as possible working for me. Right now I conservatively have two years worth of living (I prefer that term to expenses) in my EF. Although, I'm not happy about.
quadog
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Re: Where are you storing your emergency fund money?

Post by quadog »

Sigh. No good options. I keep 6 months in Schwab MM (SWVXX). I'm sure Schwab is thrilled I'm giving them a loan that is virtually free.
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bengal22
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Re: Where are you storing your emergency fund money?

Post by bengal22 »

Marseille07 wrote: Fri Dec 18, 2020 6:01 pm
bengal22 wrote: Fri Dec 18, 2020 5:34 pm My whole portfolio can be used as an emergency fund. I can have cash within a day. Plus I have a credit card. Don't get emergency funds.
Using CCs would be a given. But those CCs have to be paid back, that's where EF is used.
There is a cost to having low yielding cash sitting around waiting on an emergency. I choose to sell funds if I need to pay an unexpected bill.
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley
cutterinnj
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Re: Where are you storing your emergency fund money?

Post by cutterinnj »

I am keeping a bunch completely liquid in checking, making virtually nothing.

In this current market, it’s not worth the possible few hundred $$$ chasing rates.

I have significant fixed expenses for the next few years (Ie alimony, mortgage, nanny costs, etc...) and like having it available and visible at all times.
kelvan80
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Re: Where are you storing your emergency fund money?

Post by kelvan80 »

Some in Money Market Savings or AMEX earning .5% but most of it is in CD's at NFCU earning 2-2.75% that we got before rates dropped so tremendously. It's mostly our house fund for in a year and new car purchase, tuition for the oldest so none of it can really be in the market without taking risk and we don't need that for this pile of money.
kevdude
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Re: Where are you storing your emergency fund money?

Post by kevdude »

We don't really have an emergency fund, but we do have $125k split 60/40 between Vanguard Short-Term Federal Fund (VSGDX), currently yielding about .74%, and Vanguard Wellesley (VWIAX). This represents a very small portion of our total portfolio. A portion of it will probably be used for small home improvements and some may end up in DD's (sophomore in HS) 529, depending on where she ends up going.

ETA: These funds were previously in Vanguard Prime Money Market, which appears to no longer be available or was merged into another fund.
roth evangelist
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Re: Where are you storing your emergency fund money?

Post by roth evangelist »

Savings account with .5% (last I checked) interest. Have it linked to one of my credit cards for easy payment of expenses in case of emergency.
pseudoiterative
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Re: Where are you storing your emergency fund money?

Post by pseudoiterative »

Charon wrote: Fri Dec 18, 2020 8:13 pm I'll keep a few Yapese Rai stones buried in my yard just in case :wink:
As someone sadly ignorant of Yapese Rai stones and their utility as a means of storing value, that got a chuckle out of me.
The monetary system of Yap relies on an oral history of ownership. In the case of stones that are too large to move, buying an item with one simply involves agreeing that the ownership has changed. As long as the transaction is recorded in the oral history, it will now be owned by the person to whom it is passed and no physical movement of the stone is required.
-- wiki/Rai_stones

This poses a complication but also affords an opportunity. You also need a way to preserve the oral history that records your claim of ownership. But supposing that problem can be solved, since physical movement of the stone is not required when ownership changes hands, perhaps you could offer a service to others where you allow them to store some of their asset value in the Rai stones you carefully keep securely buried in your yard, by buying or borrowing fractional shares in a stone.

Perhaps the 2020 version of this could be upgrading the transaction ledger from oral history to blockchain. Then you could divvy up your Rai stones into fractional shares and lend these Rai stone shares to other investors -- that would be win-win as it would allow both parties to better diversify their asset allocations and moderate their exposure to Rai stone volatility. There might also be an angle where you could securitise the Rai-stone obligations that you originated, and package it into a bond that could be sold to institutional investors.

If we were to compare to bitcoin, similarly to how bitcoin fundamentally has built-in limits that restrict how quickly new bitcoin can be manufactured, the storage capacity of your yard for Rai stones is also limited, which can give prospective Rai stone investors confidence of a guard against Rai stone inflation. Unlike bitcoin however, a Rai stone clearly has nonzero fundamental asset value in addition to its speculative value - leaving aside its role as currency, it has utility as a piece of limestone that could be repurposed as building material or function as a paperweight.
000
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Re: Where are you storing your emergency fund money?

Post by 000 »

willthrill81 wrote: Fri Dec 18, 2020 6:12 pm Personally, this is an area where I think that many BHs are simply overly pessimistic. Yes, it's possible that both you and your spouse will lose your jobs on the same day that your house burns down, you have a big out-of-pocket medical bill, stocks are down -50% from their all-time highs, etc., but how likely is such a perfect storm to happen to you? Some argue that any likelihood of that happening warrants a 24 month EF, but that ignores the reality that there is no guarantee that any amount of funds will be enough to cover everything that could ever happen. Like it or not, we're all playing the odds to some extent.
You forgot a zombie outbreak. :P
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willthrill81
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Re: Where are you storing your emergency fund money?

Post by willthrill81 »

000 wrote: Sat Dec 19, 2020 12:02 am
willthrill81 wrote: Fri Dec 18, 2020 6:12 pm Personally, this is an area where I think that many BHs are simply overly pessimistic. Yes, it's possible that both you and your spouse will lose your jobs on the same day that your house burns down, you have a big out-of-pocket medical bill, stocks are down -50% from their all-time highs, etc., but how likely is such a perfect storm to happen to you? Some argue that any likelihood of that happening warrants a 24 month EF, but that ignores the reality that there is no guarantee that any amount of funds will be enough to cover everything that could ever happen. Like it or not, we're all playing the odds to some extent.
You forgot a zombie outbreak. :P
I was actually writing the lyrics to a new country song! Hmm.... What rhymes with zombie? :?:
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
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Nicolas
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Re: Where are you storing your emergency fund money?

Post by Nicolas »

willthrill81 wrote: Sat Dec 19, 2020 12:25 am I was actually writing the lyrics to a new country song! Hmm.... What rhymes with zombie?
Abercrombie?
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willthrill81
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Re: Where are you storing your emergency fund money?

Post by willthrill81 »

Nicolas wrote: Sat Dec 19, 2020 12:31 am
willthrill81 wrote: Sat Dec 19, 2020 12:25 am I was actually writing the lyrics to a new country song! Hmm.... What rhymes with zombie?
Abercrombie?
"I lost my job at Abercrombie,
then my car got totaled when I hit a zombie."

Pardon me while I call Nashville.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
ThaiFriedRice
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Re: Where are you storing your emergency fund money?

Post by ThaiFriedRice »

I'm a little outside the box and use Yotta Savings. The APR ranges on how much you win but for me its been near 2-3% I've been using it a couple months, seems pretty safe and you can get your money in / out pretty quickly. Learned about it through Graham Stephan https://www.youtube.com/watch?v=Fe1uWBSnzLw
Robert20
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Re: Where are you storing your emergency fund money?

Post by Robert20 »

My EF:

1. 30% in Checking Account Yield 1.3%
2. 20% in online Savings Account Yield 1.25%
3. 30% in VTEB
4. 20% in VTIP
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LadyGeek
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Re: Where are you storing your emergency fund money?

Post by LadyGeek »

ThaiFriedRice wrote: Sat Dec 19, 2020 1:33 pm I'm a little outside the box and use Yotta Savings. The APR ranges on how much you win but for me its been near 2-3% I've been using it a couple months, seems pretty safe and you can get your money in / out pretty quickly. Learned about it through Graham Stephan https://www.youtube.com/watch?v=Fe1uWBSnzLw
Welcome! You may not be getting the 2-3% that you think.

Here's a counter-point: YOTTA SAVINGS REVIEW: The Truth On The Bank Graham Stephan Invested In

The negative points start at 4:00 minutes.

- Online banks have higher rates
- Up to 10 days to transfer money
- Limits on transfer amounts
- Don't count on winning anything
- The actual interest may end up being close to the market average
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Fortune
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Re: Where are you storing your emergency fund money?

Post by Fortune »

Robert20 wrote: Sat Dec 19, 2020 1:33 pm My EF:

1. 30% in Checking Account Yield 1.3%
2. 20% in online Savings Account Yield 1.25%
3. 30% in VTEB
4. 20% in VTIP
Where are you getting 1.25-1.3% for Checking and Savings accounts. Thx
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avenger
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Re: Where are you storing your emergency fund money?

Post by avenger »

No emergency savings per se.
I have a 70/30 portfolio with a large component in non-retirement accounts.
My entire portfolio is my emergency fund.
I keep a couple months expenses in a checking account though.
cheers ... -Mark | "Our life is frittered away with detail. Simplify. Simplify." -Henry David Thoreau | [VTI, VXUS, VWITX, SV fund]
ChinchillaWhiplash
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Re: Where are you storing your emergency fund money?

Post by ChinchillaWhiplash »

Tax free muni bond fund, short term treasuries ETF, and total stock index ETFs (US and International). All in taxable. Over $50k in muni. $5k STT. $50+K in stock funds. Also have a ton of available CC that can quickly be paid off with funds in taxable. Would use STT 1st. Then muni. Then stocks. Also have a few thousand in cash (standard checking account).
Shallowpockets
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Re: Where are you storing your emergency fund money?

Post by Shallowpockets »

nolesrule wrote: Fri Dec 18, 2020 5:08 pm I don't know where I keep my Emergency Fund. I have various checking, savings, CDs, I Bonds, brokerage holding stocks. When an emergency arises I'll pick from the best withdrawal option at the time.

I agree with this. Why not keep emergency funds in the usual three fund portfolio? Most emergencies can be dealt with by credit card. Then you have time to sell and transfer what you need to cash.

K
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Ice-9
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Re: Where are you storing your emergency fund money?

Post by Ice-9 »

Approximately 2/3 of it in a Presidential Advantage Checking account, earning 2.25% on the first $25k and then a still-advantageous over online savings accounts rate beyond that amount (currently 0.65%).

The other approximately 1/3 is in I-Bonds, most of which are past the one-year mark and thus could be tapped immediately.
james865
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Re: Where are you storing your emergency fund money?

Post by james865 »

Capital One 360 MMDA

Easy, always available, and better interest than my linked account to Vanguard MMDAs. In the long run it makes little difference at current rates.
Robert20
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Re: Where are you storing your emergency fund money?

Post by Robert20 »

Fortune wrote: Sun Dec 20, 2020 10:25 am
Robert20 wrote: Sat Dec 19, 2020 1:33 pm My EF:

1. 30% in Checking Account Yield 1.3%
2. 20% in online Savings Account Yield 1.25%
3. 30% in VTEB
4. 20% in VTIP
Where are you getting 1.25-1.3% for Checking and Savings accounts. Thx
First Tech Credit Union (checking and savings account)

Also discover bank online also - earlier they had 2% and now reduced to 0.5%..
livelovelaugh00
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Re: Where are you storing your emergency fund money?

Post by livelovelaugh00 »

98k in HM Bradley that has 3%. Highly recommended. Very fast to transfer money out even in the big chunk.
50k in Presidential bank that has 2.25%. Great return.
10k in I bond. I started late. Sigh.
80k in PNC at 0.8%. Hope it did not get lowered again.
10k in VWITX.
20k in VMATX. They both have good return.
30k tired up waiting for bank bonus.
80k in Merrill Edge standing by.
18k cash equivalent sitting around not producing anything. Need to let them work.

Plan to front load 401k in 2021 to reduce some cash reserve.

Kid will be a college junior next fall. 90k of cash is my half share of the junior year and senior year expenses. It can't be touched whatsoever. Tuition, room and board is very high. Luckily kid is extremely frugal and invest almost everything.

This is a great year for saving with nowhere to go. Our total spending excluding sophomore year Tuition is less than 30k! My company just announced last week that we won't consider to open until next July. Saved a lot of gas for sure. Working from home means work longer hours for sure too.

Blessed for the good market. The total investment return on paper is over 200k ytd. Amen.

Hope to retire when kid is out of college.
Stick5vw
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Re: Where are you storing your emergency fund money?

Post by Stick5vw »

Keep around $20k in checking account for wife and I, earning nothing, but is meant to be liquid to pay all bills and expenses etc (and frankly keep above $10k minimum balance to avoid a monthly fee from our bank). This is basically our emergency fund.

$150k in AMEX online high yield savings (now currently about 0.5%) - cash stockpiled for a down payment at some stage. No lockup and cash can be accessed anytime. Have had the account for a few years now and been happy.

Everything else goes into 401K, Roth, 529 etc and then if there’s leftover, to a brokerage account (usually as per asset allocation - but these days mostly into ITOT)
Last edited by Stick5vw on Mon Dec 21, 2020 9:37 am, edited 1 time in total.
SpaghettiMonster
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Re: Where are you storing your emergency fund money?

Post by SpaghettiMonster »

I’m using a CD ladder with a year’s worth of expenses and certificates renewing quarterly and about another quarter’s worth of expenses in a HYSA.
index2max
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Re: Where are you storing your emergency fund money?

Post by index2max »

1. Lake Michigan Credit Union's "max checking" account (3% up to $15,0000)

2. Evansville Teachers Credit Union's "vertical checking" account (3.3% up to $20,000)

3. Altra Credit Union's "A+ platinum" checking account (2.75% up to $15,000). It was 3.5% annually until mid-2020 after the federal reserve cut interest rates. So I wouldn't recommend this one over the first two credit unions I listed
DJZ
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Re: Where are you storing your emergency fund money?

Post by DJZ »

armeliusc wrote: Fri Dec 18, 2020 11:27 am Series I Saving Bond: inflation protected.
+1. Seriously look at this!
manatee2005
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Re: Where are you storing your emergency fund money?

Post by manatee2005 »

My emergency fund money is my credit cards.
Everything else is 100% in stocks.
Outer Marker
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Re: Where are you storing your emergency fund money?

Post by Outer Marker »

Mine is a Merrill earning a $1,000 sign-up bonus. When that is up in 90 days, will move it over to Chase for the same.
tomsense76
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Re: Where are you storing your emergency fund money?

Post by tomsense76 »

Have fixed income in a few forms:

* 6mos HYSA
* 6mos Stable Value Fund in 401k
* 6mos Dodge & Cox Income in 401k
* 6mos Vanguard Intermediate-Term Tax-Exempt
* 1yr in I & EE Savings Bonds

Funds in 401k can be liquidated using this strategy in the wiki.

Beyond that my whole portfolio can be tapped if needed.
BlueCable
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Re: Where are you storing your emergency fund money?

Post by BlueCable »

1.5 months in checking, and the rest in savings bonds. The savings bonds double as the bond portion of my investment portfolio.
Blue456
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Re: Where are you storing your emergency fund money?

Post by Blue456 »

TheQuestionGuy wrote: Fri Dec 18, 2020 11:15 am Have been keeping the emergency funds in standard savings account primarily to ensure its readily available but looking back at the $100 interest it has earned in the past 5 years, and now thinking there has got to be a better place.

Have checked CDs, but for what little interest they earn, it didn't seem beneficial to have that money "locked up".
Possibly doing a ladder configuration with the CDs could work by leaving some money availalbe, but still the potential of having the money "locked up".

What is the general consensus on where to keep ones emergency cash knowing it needs to be readily available in well.....an emergency?
I have been going back and forth on this. Currently I have 100% emergency fund as CDs. I do keep my emergency fund as portion of my fixed income allocation in taxable so my equity allocation will help keep up with inflation.
dcabler
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Re: Where are you storing your emergency fund money?

Post by dcabler »

Nowhere specifically. I keep more than I should in my checking account, but that's mainly because we're doing some home improvement projects.

Anyway, there have been threads on this in the past, but having a true, dedicated emergency fund really depends on personal circumstances. When my daughter graduates college in a couple of years and starts to work, I'll encourage her to build up a true emergency fund first before anything else. Then we'll discuss investing.

In our current circumstance, it's tough to imagine a case where a true emergency can't be handled either via a credit card for an absolute immediate need or waiting a couple of days to sell something in our taxable investment account and have it transferred to checking.
JDSwim3
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Re: Where are you storing your emergency fund money?

Post by JDSwim3 »

Retired. My EF doubles as a down-market withdrawal source (don’t sell losers for living expenses).

I keep 2 years of living expenses in a high yield savings account at SFGIDirect. Was 1.25% last summer, now down to 0.56%, but as an earlier response noted, not looking to make a killing with EF.

It’s a very conservative approach, but it helps me sleep at night within my overall AA strategy.
Dominic
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Re: Where are you storing your emergency fund money?

Post by Dominic »

Currently, I have 8 months of expenses in a high yield savings account, and 1 month in EE Bonds.

My goal is to move most of the fund to I Bonds. Between purchase limits and the 1-year lock-in, this won't be a quick process.
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