Results 326 to 350 of 625
Thread: Where to Invest Money Right Now?
-
11-22-2022, 09:57 AM #326
This was the point I made earlier. There are plenty of liquid options (liquid in that it can be accessed within a few days) that earn way more than a money market and are stable/conservative enough that they won't completely shit the bed in a 2008 downturn (and if you had the money earning over a long time period, to the extent it does dive in a 2008 downturn, the money lost is probably your previous gains).
"fuck off you asshat gaper shit for brains fucktard wanker." - Jesus Christ
"She was tossing her bean salad with the vigor of a Drunken Pop princess so I walked out of the corner and said.... "need a hand?"" - Odin
"everybody's got their hooks into you, fuck em....forge on motherfuckers, drag all those bitches across the goal line with you." - (not so) ill-advised strategy
-
11-22-2022, 10:01 AM #327
Remember, 40% of the country doesn't have cash on hand to cover an unexpected $400 bill. If you're in an either/or situation where you have to choose between building an EF or stashing some money into a 401k/IRA/etc., you're probably better off going long-term and gambling on things being OK short-term. Or, start learning to like cat food now.
That said, an EF can be useful for a lot more than genuine "emergencies." My truck got totaled late last fall. Insurance takes time, but I needed a new truck ASAP. I was able to loan myself the payout and buy a truck, then pay myself back two weeks later when the insurance co. actually cut the check. Those two weeks would have been a minor nightmare otherwise.
-
11-22-2022, 10:07 AM #328Registered User
- Join Date
- Oct 2007
- Posts
- 12,662
-
11-22-2022, 10:23 AM #329Rope->Dope
- Join Date
- Nov 2012
- Location
- I-70 West
- Posts
- 4,684
Where to Invest Money Right Now?
-
11-22-2022, 10:29 AM #330Registered User
- Join Date
- Oct 2007
- Posts
- 12,662
-
11-22-2022, 10:35 AM #331Registered User
- Join Date
- Jan 2022
- Posts
- 1,623
I can walk and chew gum.
1-2% interest difference over the life of a 6-12 month EF established prior to investing for retirement is not huge (so 20-30 years) but is not irrelevant either.
-
11-22-2022, 10:43 AM #332Registered User
- Join Date
- Jan 2010
- Location
- your vacation
- Posts
- 4,735
18k in cash and rifle under the bed
pretty secure
-
11-22-2022, 10:45 AM #333
FTT!!!
-
11-22-2022, 10:47 AM #334
Saving up $50k is a huge amount of money for most people, even $20k. If saving that EF takes you two years and delays your entry into a 401k, then has your initial two years of investments handicapped at making less than inflation that becomes a significant difference.
If you lose your job there’s unemployment, if you’re that worried about an injury there’s Aflac.
-
11-22-2022, 10:48 AM #335Registered User
- Join Date
- Oct 2007
- Posts
- 12,662
But you aren’t even getting 1-2% over the life. You are just looking at todays conditions. There’s a reason that nobody invested in IBonds and Tbills until recently. CDs are the only one that you mentioned that are consistently higher and they aren’t even liquid w/o penalty.
-
11-22-2022, 10:59 AM #336
For my EF I put 3 months in a savings account, and then another 3 month in a Wealthfront investment account. If shit really hit the fan and we both lost our jobs during a major downturn we could take a hit selling from the investment account, but it seemed worth the risk given the probabilities.
So far the investment account has more than doubled. The savings account has not.
-
11-22-2022, 10:59 AM #337Registered User
- Join Date
- Oct 2007
- Posts
- 12,662
Why does this “most people” thing keep coming up. Most people are shitty with money, that’s not news. Most people can’t come up with cash to cover $400 emergency? Yeah, that’s not a reason for other people to not have an EF. It is just the reason for “most people” to be in debt up to their eyeballs for many years after what could have been a minor hurdle.
-
11-22-2022, 11:02 AM #338Registered User
- Join Date
- Jan 2022
- Posts
- 1,623
-
11-22-2022, 11:07 AM #339
OK, so ya'll talking about some marginal return plus loss of liquidity as being preferred to cash better not be financing anything other that your house. People love to act real smart with their investing and act real dumb with their borrowing. Payments suck.
-
11-22-2022, 11:12 AM #340
I'm no dentist. My retirement is mostly pension, and a 401K that I am trying to grow but isn't that big. So for a non-baller like me, the EF is not some minor amount of my available (ie non-retirement acct) money. So giving up any significant return on that money is not "pocket change"; it's actually quite the opposite. Maybe it is for you, but not for me.
Disagree with the "no matter your timeline." Because you're looking at this with a small time window, which is the wrong window IMO (or at least, the wrong window to evaluate what I am talking about). Sure, having to withdraw during a market downturn is not great. But if that money has been earning me 5% for the previous ten years, and your MM has been earning 1%, then even if my money crashes by 15% during a downturn at year 10, and yours doesn't budge, I still have WAY more than you, even though you're not withdrawing after your money has taken a downturn and I am. To put hard dollars on it, if we each started with $10k, I would have ~$14k (AFTER that 15% downturn) and you would have ~$11k."fuck off you asshat gaper shit for brains fucktard wanker." - Jesus Christ
"She was tossing her bean salad with the vigor of a Drunken Pop princess so I walked out of the corner and said.... "need a hand?"" - Odin
"everybody's got their hooks into you, fuck em....forge on motherfuckers, drag all those bitches across the goal line with you." - (not so) ill-advised strategy
-
11-22-2022, 11:24 AM #341
Danno, what's this hypothetical investment that outperforms cash by 4% with no principal or liquidity risk? Because that's what your example assumes.
Home repairs
Medical bills
Family emergencies
Strategic opportunities
Vehicle Repairs
Too much cash has an opportunity cost but it's usually less than having to finance the realities of life.
-
11-22-2022, 11:25 AM #342Registered User
- Join Date
- Oct 2007
- Posts
- 12,662
Yeah, you set the parameters and you can make the math work great for you. Must be nice to only have emergencies after 10+ years of exceptional market conditions. Man, I don’t think I’d invest in an account that earned 1% either.
Once again, if your other investments are 10-20x your EF, then who cares about earning a few grand extra return over 10 years on your EF? And yeah, I was able to invest more of my paycheck more consistently over the years because I have the comfort of knowing that I have a healthy EF.
Pensions are not the norm these days either but if you have one, that’s great, you have different circumstances. Hopefully it is being invested well too and doesn’t disappear in a downturn.
-
11-22-2022, 11:28 AM #343Registered User
- Join Date
- Oct 2007
- Posts
- 12,662
-
11-22-2022, 11:33 AM #344
I'm guessing Danno has PERA which is only about $32billion underfunded. Its all really just mental accounting of the personal balance sheet and income statement. Someone with more liquid lower risk investments probably needs less cash and so on.
-
11-22-2022, 11:34 AM #345Registered User
- Join Date
- Jan 2022
- Posts
- 1,623
It’s almost like different people are comfortable with different levels of risk and return. Crazy.
I bet someone here is “right” though.
-
11-22-2022, 11:38 AM #346
True, my point was more about optimization and avoiding the trap where one is illiquid and has to borrow though inefficient means like car loans and credit cards. Its really more about scenario analysis than cherry picking the conditions under which one's choice wins.
-
11-22-2022, 11:42 AM #347Rod9301
- Join Date
- Jan 2009
- Location
- Squaw valley
- Posts
- 4,667
In addition to an emergency fund, i would keep at least 10 percent of your investable assets in either cash or some very liquid stuff.
Then when the market or a favorite stock goes down, you can invest
Sent from my moto g 5G using Tapatalk
-
11-22-2022, 11:43 AM #348
-
11-22-2022, 11:45 AM #349
-
11-22-2022, 11:45 AM #350Hucked to flat once
- Join Date
- Oct 2005
- Location
- Idaho
- Posts
- 11,000
Without entering the how much cash to have on hand for emergencies conversation, there may be other options. If you own a home with some equity, how about setting up a HELOC and not touching it unless you have an emergency or find a great investment that will outrun the HELOC interest? If you have a 401K, many of those have loan options out of the 401k funds so something to review for emergency needs prior to having an emergency. A lot of people get rich on interest and a lot of people get poorer. An emergency isn't a time to be thinking about rich and poor. It's an emergency...you just want to get through it and get back to normal life where you can make good or bad long term financial decisions.
Signed-an idiot with too much cash sitting in a non-interest bearing account waiting for building permits.
Bookmarks