Reply to How much do you keep in your checking account?

Forum Index » Money and Finances

Reply to "How much do you keep in your checking account?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]Currently have $1.2m in there.[/quote]
In [i]checking[/i]?

[quote=Anonymous]And we’ve been expecting a crash for about five years so it always seems like a bad time to put money in the markets which is why I always dither. [/quote]
Oof.  The S&P 500 is up 87% over the past five years.  If you'd put $1.2 million in an S&P index fund five years ago, it would be worth $2.2 million today.  But with inflation, that $1.2 million buys about 23% less than it did five years ago.

In other words, your fear of investing has cost you a lot of money.  You should really find someone who can help you put that money somewhere that will earn a reasonable return at a risk level you can tolerate.

[/quote]

I'm the PP you're responding to. I eventually move money over to our financial planner. Maybe every 6 months or so.  Of the $1.2m in there right now, $1m is from our bonuses this year.  It's not like it's been there for years.  So i'll probably move that over in the next couple months.  But then within 6 months, our salary checks accumulate to another $600k or whatever.  And even when i send said cash to my financial planner, he is also fairly conservative and isn't going to be dumb enough to drop $1m in the market on the first day. He spreads it out.  Granted, he can make me more money in a cash account than BOA, but it's still not huge dollars.  And i'm not going to set up an auto transfer to him. I want to discuss each time before sending.

Also, for those who think it's weird to keep in checking account but savings account is fine, I have a savings account that's been sitting idle for 20 years with something like $8k in it.  Every year BOA sends me my tax interest statement, and it's usually around $1.23 interest per year.  It's not like a savings account is going to net me enough interest in a year to make it worth my while to move stuff around.  I earn around $1500/hr, so spending an hour to save $25 doesn't make sense for me.  [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics