Emergency accounts — all cash?

[Anonymous]

I’ve been prioritizing saving in cash accounts this year knowing that it is highly likely I’ll be laid off ((government contractor in a non-favored field). So far I’ve been lucky and it looks like I’ll be safe at least through the end of the year. I finally reached ~$70K in cash savings (which is about 8 months of expenses). All is in a HYSA. I’m debating whether I should move some of it into investments or just leave it be especially with the threat of recession. How much do you have in pure cash vs. investments when facing a personal cliff?

[Anonymous]

I don't think 8 months is overly conservative in your situation

[Anonymous]

How do you define “cash” and how do you define “investments”?

Our emergency funds are those we can get to quickly like: checking, savings, CDs, HYSA, MMF. All funds that cannot lose value.

[Anonymous]

We have $300K in a MMA earning 4.15%.

My spouse became unemployed at 59.5, and we have one DC in college, and one a HS senior. I want to retire next year, so we need a large cash buffer.

IMO, it's better to have 1 yr worth of expenses due to the roller coaster ride of the current economy.

Also, if you read through the jobs forum, there are a lot of people who have been unemployed for 1+yr.

[Anonymous]

We have 1 year of expenses in cash right now.

[Anonymous]

Anonymous wrote:We have $300K in a MMA earning 4.15%.

My spouse became unemployed at 59.5, and we have one DC in college, and one a HS senior. I want to retire next year, so we need a large cash buffer.

IMO, it's better to have 1 yr worth of expenses due to the roller coaster ride of the current economy.

Also, if you read through the jobs forum, there are a lot of people who have been unemployed for 1+yr.

Who gives 4.15?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have $300K in a MMA earning 4.15%.

My spouse became unemployed at 59.5, and we have one DC in college, and one a HS senior. I want to retire next year, so we need a large cash buffer.

IMO, it's better to have 1 yr worth of expenses due to the roller coaster ride of the current economy.

Also, if you read through the jobs forum, there are a lot of people who have been unemployed for 1+yr.

Who gives 4.15?

https://www.schwab.com/money-market-funds

[Anonymous]

Trump is going to crash the dollar
Run on banks in January prepare now

[Anonymous]

Anonymous wrote:Trump is going to crash the dollar
Run on banks in January prepare now

How? Move funds to euros?

[Anonymous]

We have a years’ worth of living expenses in a HYSA (Betterment, current promo rate is 4.65%).

[Anonymous]

I would leave it in cash and keep building it. Spouse and I are both experiencing uncertainty with federally funded employment and a saturated job market and currently have two years in cash split between a HYSA and money market fund.

[Anonymous]

I would try to get to a year's worth of expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have $300K in a MMA earning 4.15%.

My spouse became unemployed at 59.5, and we have one DC in college, and one a HS senior. I want to retire next year, so we need a large cash buffer.

IMO, it's better to have 1 yr worth of expenses due to the roller coaster ride of the current economy.

Also, if you read through the jobs forum, there are a lot of people who have been unemployed for 1+yr.

Who gives 4.15?

https://www.schwab.com/money-market-funds

Just making sure people understand these types of accounts also carry fees. So the net is not 4.15 percent.

[Anonymous]

Interest rates for HYSA are slow to rise and quick to fall. What about keeping 3 months in a HYSA and laddering the rest? So an additional 3 months worth of expenses in a 3 month CD and the remainder in a 6 month CD. The you can access money if you need it, but you guarantee a 4+% interest rate, at least for the next 6 months.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have $300K in a MMA earning 4.15%.

My spouse became unemployed at 59.5, and we have one DC in college, and one a HS senior. I want to retire next year, so we need a large cash buffer.

IMO, it's better to have 1 yr worth of expenses due to the roller coaster ride of the current economy.

Also, if you read through the jobs forum, there are a lot of people who have been unemployed for 1+yr.

Who gives 4.15?

https://www.schwab.com/money-market-funds

Just making sure people understand these types of accounts also carry fees. So the net is not 4.15 percent.

And understand what they invest in. MMFs although not FDIC insured are generally safe though treasury MMF will be safer than retail MMF. Just don't invest in something for the interest rate but understand what it is.