What to do savings account

[Mooretitan]

Well the last couple of years we have tried pretty hard to put about 6 months of income into our emergency savings. Finally made it there is month but hate leaving that much cash in a savings account that is not earning any interest and losing money with inflations. For those that have 6+ months of income saved what are you guys doing with it.

Thanks

 

[TN2shot07]

That money’s job isn’t to make more money, it’s to be immediately accessible for an emergency. Find a decent money market account or “high” yield savings account and consider it insurance

 

[JohnCushman]

Hookers and blow, dude

 

[TOGIE]

after our savings account hits its mark i put my savings allocations into the IRA and brokerage accounts. or you could increase workplace retirment contributions too.

but yeah, the savings account just sits there. only in surplus of the savings account gets invested.

 

[longbow51]

What they said.

 

[220yotekiller]

Let it sit, you want it there when you need it. It is your insurance.

 

[BenInMT]

You can put up to 10k per-year in I Bonds which at least you can shelter some money from inflation and you can cash out if you need it.

 

[MarvB]

You can put up to 10k per-year in I Bonds which at least you can shelter some money from inflation and you can cash out if you need it.

Is it still that you can only purch $5k from the treasury dept and have to get the other $5k from a Bank as in the past? Is that $10 per person? I think my brother just purch some and they were at like 7.12% (I’d ask him these questions but he checks his phone about once a month lol)

 

[BenInMT]

Is it still that you can only purch $5k from the treasury dept and have to get the other $5k from a Bank as in the past? Is that $10 per person? I think my brother just purch some and they were at like 7.12% (I’d ask him these questions but he checks his phone about once a month lol)

I think you can buy $15K total per-year, per-person. You can buy 10 electronically and 5 paper, but I am not sure how to buy the paper ones.

 

[Brittany Chukarman]

Is it still that you can only purch $5k from the treasury dept and have to get the other $5k from a Bank as in the past? Is that $10 per person? I think my brother just purch some and they were at like 7.12% (I’d ask him these questions but he checks his phone about once a month lol)

$10,000 per person through Treasury Direct. 7.12% if purchased by 4/22. Also adjusts for inflation. You lose 3 months interest if redeemed before 5 years. Wish I could buy more in these times.

 

[MarvB]

Thanks guys, we want to spread the eggs in a new diff baskets this year.
Had most of our work savings transferred into a 457B the last few years before retirement but that’s paying a whopping 3.5% right now.

 

[The_Jim]

My emergency fund is probably closer to 4-6 months of expenses not income. If you have saved 6 months of income you probably have more than you need. I think you just have to figure a number your comfortable with and just leave it in the savings account. Sounds like that number might be higher than you need right now.

In the big picture your emergency fund is not that much money and its there for an emergency. You want fast access to it! I would keep it in the bank.

 

[nontyp]

You can put up to 10k per-year in I Bonds which at least you can shelter some money from inflation and you can cash out if you need it.

I did this a few months ago. Bought $10k in ibonds with some of our emergency savings. Only kicker is that your money is tied up for a year. I do have other savings, and wouldn’t recommend tying up your entire emergency savings for a year.

 

[pabearhunter]

Watch for guns on sale.

 

[Trial153]

While my wife and I are no longer under threshold for Roth contributions, when we did we managed a to save enough in our Roths that would cover more then enough for emergency income if we needed it. The key is to keep the portion in liquid assets.
Talk to your accountant

 

[Deleted member 18333]

I simply keep my "emergency savings" in a brokerage account and invest like I would anything else. If an emergency comes up, never has, that I needed funds sooner than I could get them from a brokerage account distribution I would simply pay with a CC then access the funds from my brokerage account and pay off the CC in full. I have yet to have someone show me a scenario where I needed cash at a moments notice. Except for the @JohnCushman plan. Which has a good deal of merit to it and should be looked into further.

Half a years income, sitting in a savings account seem awfully high to me. YMMV

 

[SD_Prairie_Goat]

I think you can buy $15K total per-year, per-person. You can buy 10 electronically and 5 paper, but I am not sure how to buy the paper ones.

Just looked into this, as it was the perfect solution for my needs.

The $5k in paper has to be bought when you file your taxes. Its the strangest thing IMO....

Already did my taxes so I'm not going to go back and try to submit it, but for my future reference you basically pay for the paper bonds when you file taxes...


Electronic sure is slick and easy though

 

[Deleted member 18333]

That money’s job isn’t to make more money, it’s to be immediately accessible for an emergency. Find a decent money market account or “high” yield savings account and consider it insurance

All moneys job should be to make more money. Lots of ways to do that and still be able to cover unexpected needs.

 

[TN2shot07]

All moneys job should be to make more money. Lots of ways to do that and still be able to cover unexpected needs.

We can agree to disagree, insurance always costs me money. It’s about transferring some risk and I’m ok with the cost. I have seen people invest that emergency savings during a good market and refuse to take it out to cover an emergency and resort to a credit card. That’s a hard pass for me but to each their own.

 

[Benjamins]

I simply keep my "emergency savings" in a brokerage account and invest like I would anything else. If an emergency comes up, never has, that I needed funds sooner than I could get them from a brokerage account distribution I would simply pay with a CC then access the funds from my brokerage account and pay off the CC in full. I have yet to have someone show me a scenario where I needed cash at a moments notice. Except for the @JohnCushman plan. Which has a good deal of merit to it and should be looked into further.

Half a years income, sitting in a savings account seem awfully high to me. YMMV

Exactly what I do. I can easily access the money before any interest would be charged on a credit card. Being invested for the past 2 years has made me almost an 80% return. I understand that kind of return will never happen again but I hate the idea of sitting on cash with record inflation.