Thread: Savings vs Investing

How much for an emergency fund?

At todays inflation about 10K min. In very liquid assets. MM, savings, etc.

Aslan had a good place at 3.5. Also see http://www.capitalone.com Savings at 3.45, plus CDs etc.

TSP is a tax deferred retirement savings plan. I chose to also go with a tax paid savings plan of my own. At one time it was with a mutual fund company, but have since switched to an online broker. So my retirement savings went 50/50.

This has worked out quite well.

If the TSP L funds work out. I may not roll the money into a traditional IRA. Will have to wait and see.

TSP is a good thing. I just don't like having all my funds there.

When you consider emergencies. Remember as you get older they can come in series. And, if you have kids, what about them? If one of them looses a job! Guess who they will call!

Rgds! Spaf

Edit: It also depends on the number of kids!!!:u

Mike wrote:

Clearly, we both saw how cool the people are who are constantly arguing on here, and we had to give it a try. :l

Hey, I love a good argument if its productive and it makes you think. Exchanging thoughts, opinions, and ideas is a good things.

See ya! Nap time. Got get up at 0500.:zz

I don't need much savings as a young single renter- just two months rent and my monthly credit card payment sits in the local bank. Everything else is off chasing after interest and capital gains for me.

neirbod wrote:

As government workers we have a huge perk that significantly affects my personal savings/investment strategy - job security!

I used to think that until, several years ago,another government worker couldn't fix my pay problems...went without pay for one month and for three months, I was only getting every other paycheck. A lesson learned the hard way.

Mike wrote:

I have two weeks' pay in my money market account. I don't want to put that much more in there - for one thing, I don't need that much sitting in a money market account earning the paltry 3% return.

I suppose it also helps that I'm rarely in a situation where I'm spending all of my paycheck. There always seems to be something left over - which is why I've already maxed my Roth contribution for the year. After that, I funneled some into my brokerage account, and from here 'til December, I'll probably just split the excess 50/50 between the money market / brokerage until my MM hits 4 weeks' pay, at which point everything will go to the brokerage account.

Exactly!

Level 1 reserves: MMA, 3.2%, not more than $2K, have debit card and checkbook
Level 2 reserves: Scottrade, have debit card and checkbook
Level 3 reserves: Roth contributions...if I need this, I gots big prollems.

Credit cards are pretty liquid...charge the emergency, and I have ~25 days to liquify my assets to pay off the cards.