Emergency Fund question

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ever since we married, we have tried to keep 3 months of expenses in cash in a savings account. We also could float another two months through credit and selling some property if needed.

Would you put any of your emergency fund in a MM account?

Instead of a savings account, move it into a brokerage and invest in a MM fund. MM funds pay better interest than most banks and don't lose value. Once you save beyond your emergency fund goal (3 or 6 months), you could just invest in the market (e.g. VOO) from the same account.

My HYSA has a higher interest rate than MM.

Great! Make sure its not a promotional rate and stick to it..

[Anonymous]

No, I keep quite a lot in savings and know the minute I put it in a cd or mm -I’ll need it.
Murphy’s law.

[Anonymous]

I buy a re-occurring ladder of Treasury Bills with each monthly rung equal to my monthly paychecks. No state tax and an interest rate equal to or better than most HYSA promos.

[Anonymous]

Anonymous wrote:No, I keep quite a lot in savings and know the minute I put it in a cd or mm -I’ll need it.
Murphy’s law.

CD I get (although there are some you can break without penalty, lower rate of course)

But money market? We can get our money out in 2 business days. What emergency is such that you couldn't keep say $20k in savings and the rest of your fund in a money market? The idea of an emergency fund is say you need $10k to fix your roof. Yes that may be needed quickly, but you don't have to cut the full check in 2 days.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ever since we married, we have tried to keep 3 months of expenses in cash in a savings account. We also could float another two months through credit and selling some property if needed.

Would you put any of your emergency fund in a MM account?

Instead of a savings account, move it into a brokerage and invest in a MM fund. MM funds pay better interest than most banks and don't lose value. Once you save beyond your emergency fund goal (3 or 6 months), you could just invest in the market (e.g. VOO) from the same account.

My HYSA has a higher interest rate than MM.

Which HYSA is beating (net of state taxes) Vanguard's Treasury MM at 4.22%?

https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx

There are some that pay more if you agree to a certain number of debit transactions plus direct deposit, etc…but far less if you fail to do it.

Seems like a pain just to earn an extra 0.2%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ever since we married, we have tried to keep 3 months of expenses in cash in a savings account. We also could float another two months through credit and selling some property if needed.

Would you put any of your emergency fund in a MM account?

Instead of a savings account, move it into a brokerage and invest in a MM fund. MM funds pay better interest than most banks and don't lose value. Once you save beyond your emergency fund goal (3 or 6 months), you could just invest in the market (e.g. VOO) from the same account.

My HYSA has a higher interest rate than MM.

Which HYSA is beating (net of state taxes) Vanguard's Treasury MM at 4.22%?

https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx

Live Oak Bank is giving me 4.10% and I got a $300 bonus after the first 60 days of opening.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ever since we married, we have tried to keep 3 months of expenses in cash in a savings account. We also could float another two months through credit and selling some property if needed.

Would you put any of your emergency fund in a MM account?

Instead of a savings account, move it into a brokerage and invest in a MM fund. MM funds pay better interest than most banks and don't lose value. Once you save beyond your emergency fund goal (3 or 6 months), you could just invest in the market (e.g. VOO) from the same account.

My HYSA has a higher interest rate than MM.

Which HYSA is beating (net of state taxes) Vanguard's Treasury MM at 4.22%?

https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx

Live Oak Bank is giving me 4.10% and I got a $300 bonus after the first 60 days of opening.

I mean, if we are talking about bank bonuses, those are really a whole different thing.

https://www.doctorofcredit.com/best-bank-account-bonuses/