Where do you save your "emergency fund"?

[Anonymous]

Anonymous wrote:Money in the bank is not an "emergency fund". When shit gets real, fiat money ain't no good. I keep a chest of 125 Spanish Doubloons in the safe in my bedroom - and you better believe I keep my blunderbuss handy in case I need to defend them.

I have gold, guns, and ammo. The gold is less important than the other two, however. I also don't keep coins, but gold bars.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have my HELOC available as emergency funding source.

So you don't have any emergency savings. Got it.

I have plenty of net worth and a very healthy income. However, just like I don't have a budget, I don't have the irrational need to keep cash or cash equivalents in a low/no yield account for "emergencies".

A HELOC provides instant access to large amounts of money at a very low cost, allowing me to take the time to wait for incoming funds, or liquidate my other assets if needed.

And for this priveledge you pay, what $500-600/year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have my HELOC available as emergency funding source.

So you don't have any emergency savings. Got it.

I have plenty of net worth and a very healthy income. However, just like I don't have a budget, I don't have the irrational need to keep cash or cash equivalents in a low/no yield account for "emergencies".

A HELOC provides instant access to large amounts of money at a very low cost, allowing me to take the time to wait for incoming funds, or liquidate my other assets if needed.

And for this priveledge you pay, what $500-600/year?

Some HELOCs charge a fee after the first year - find ones that don't. Max fee I've seen is $75 per year. Our HELOC has no fee. There is a early closure fee if the HELOC is closed within 36 months, no fee if kept open for longer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Savings in a Capitol One 360 (used to be ING) account.

Same...only earning about .75, but we don't keep a lot in there either (50k or so).

Same here. It's a pretty good option - no fee ACH transfers to/from other accounts. The only hiccup with it is if you need cash NOW (as in TODAY) - they don't do wire transfers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I have my HELOC available as emergency funding source.

So you don't have any emergency savings. Got it.

I have plenty of net worth and a very healthy income. However, just like I don't have a budget, I don't have the irrational need to keep cash or cash equivalents in a low/no yield account for "emergencies".

A HELOC provides instant access to large amounts of money at a very low cost, allowing me to take the time to wait for incoming funds, or liquidate my other assets if needed.

And for this priveledge you pay, what $500-600/year?

Not OP, but my HELOC is fee-free...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Savings in a Capitol One 360 (used to be ING) account.

Same...only earning about .75, but we don't keep a lot in there either (50k or so).

Same here. It's a pretty good option - no fee ACH transfers to/from other accounts. The only hiccup with it is if you need cash NOW (as in TODAY) - they don't do wire transfers.

As in TODAY - checks from HELOC deposited into regular checking via smartphone app work like magic (tested up to $10K)

[Anonymous]

I also have a HELOC as my emergency fund. No annual fees and instant access to a lot of money.

I like to keep the majority of my money invested, not sitting in a money market earning next to nothing.

[Anonymous]

Anonymous wrote:I like to keep the majority of my money invested, not sitting in a money market earning next to nothing.

Same here. That's why we only keep 50-100k in the emergency fund.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I like to keep the majority of my money invested, not sitting in a money market earning next to nothing.

Same here. That's why we only keep 50-100k in the emergency fund.

Same here. That's why we only keep $250k - $500k in the emergency fund.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I like to keep the majority of my money invested, not sitting in a money market earning next to nothing.

Same here. That's why we only keep 50-100k in the emergency fund.

Same here. That's why we only keep $250k - $500k in the emergency fund.

+1 - our rule of thumb is no more than 1% of holdings in an emergency fund so we won't allow it to go over 1MM.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I like to keep the majority of my money invested, not sitting in a money market earning next to nothing.

Same here. That's why we only keep 50-100k in the emergency fund.

Same here. That's why we only keep $250k - $500k in the emergency fund.

+1 - our rule of thumb is no more than 1% of holdings in an emergency fund so we won't allow it to go over 1MM.

Is that your way of saying that you have more than 100M in holdings?

Frankly, there are very few emergencies that requires more than about $100k in quick cash. People who want more than that amount from you are usually willing to wait a bit. With 100M assets in play, your house can likely support two open HELOCs of 500k each. I know 5-8% return on $1MM is chump change to someone with that kind of net worth, but it does pay for a nice weekend in NY.

Unless you are of course not talking about emergencies, but opportunities. "Hey Joe from NOVA Equity Partners just called. One of their other commitments bailed on the cash call due next Tuesday. Yea I know, that guy will never get invited to another fund. Joe said they can move forward as is because they are already over subscribed, but we can fill in the $1M, what do you think?"

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I like to keep the majority of my money invested, not sitting in a money market earning next to nothing.

Same here. That's why we only keep 50-100k in the emergency fund.

Same here. That's why we only keep $250k - $500k in the emergency fund.

+1 - our rule of thumb is no more than 1% of holdings in an emergency fund so we won't allow it to go over 1MM.

Is that your way of saying that you have more than 100M in holdings?

Frankly, there are very few emergencies that requires more than about $100k in quick cash. People who want more than that amount from you are usually willing to wait a bit. With 100M assets in play, your house can likely support two open HELOCs of 500k each. I know 5-8% return on $1MM is chump change to someone with that kind of net worth, but it does pay for a nice weekend in NY.

Unless you are of course not talking about emergencies, but opportunities. "Hey Joe from NOVA Equity Partners just called. One of their other commitments bailed on the cash call due next Tuesday. Yea I know, that guy will never get invited to another fund. Joe said they can move forward as is because they are already over subscribed, but we can fill in the $1M, what do you think?"

yes, but we're just middle class in this area so we don't have the extra money to engage in spur of the moment investments like you mention.