What Savings Vehicle Is Best for One’s Emergency Funds?

[azanon]

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Because of this, havingsomeone's emergency funds in a tcd or money market account that one can easily access (ex. just by writing a check) is just another recipe for disaster.

I dont have that problem. As for how to structure one's money for individual with psychological issues, i'll admit that's not my field of expertise. My guidelines were strictly for normal people who typically make good decisions. However, i suspect someone who cant restrain themselve from buying more things than they should are hardly going to be cured by self-imposed investsment that are only slightly harder to get to.

Personally, i dont like the hassle come tax time of calculating capital gains for a run-of-the-mill emergency (selling bonds is a capital gains event where you get to calculate cost basis, read fun!!!). For me, those happen quite a bit more frequently that I personally desire them. Just a couple months ago, my ac compressor rusted out, and the repair was several hundred dollars. I cut a check from the emergency money market fund. It was easy, quick, and i could pay him the exact amount owed when handed the bill.

WW, You are lucky that I am happily married or else, I'd flirt back.

Live a little ;-)

 

[Guest]

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azanon wrote:

I dont have that problem.
Live a little ;-)

Now I've got to get started on my taxes and stop this hilarity!!

 

[pyriel]

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azanon wrote:

Because of this, havingsomeone's emergency funds in a tcd or money market account that one can easily access (ex. just by writing a check) is just another recipe for disaster.

I dont have that problem. As for how to structure one's money for individual with psychological issues, i'll admit that's not my field of expertise. My guidelines were strictly for normal people who typically make good decisions. However, i suspect someone who cant restrain themselve from buying more things than they should are hardly going to be cured by self-imposed investsment that are only slightly harder to get to.

Personally, i dont like the hassle come tax time of calculating capital gains for a run-of-the-mill emergency (selling bonds is a capital gains event where you get to calculate cost basis, read fun!!!). For me, those happen quite a bit more frequently that I personally desire them. Just a couple months ago, my ac compressor rusted out, and the repair was several hundred dollars. I cut a check from the emergency money market fund. It was easy, quick, and i could pay him the exact amount owed when handed the bill.

WW, You are lucky that I am happily married or else, I'd flirt back.

Live a little ;-)

Az, You have to understand, you are not normal. We posters are not normal. The reason why I say this is because we are more knowledgeable than majority of our counterparts. So for you, it is no problem (just like me). However, majority are not as financially savvy as us. My wife and I learned this the hard way and became a reformist by accident (by accidentally reading Robert Kiyosaki's book). Reading your recent post, I believe that you and I also look at emergency funds differently. My emergency funds are for all of my morgage payments and bills required to sustain me for a year. Nice to have things like ac or water heater is not part of my emergency funds. I put them in a separate funds I call maintenance which I take out every month from my rental. My expense ratio that I allocate is 10% and it gets taken out whether monthly whether I have to make a repair or not.

WW, I would also like to add Azanon as my other flirt representative. ;-) Bye for now, boarding time for LA.

 

[Guest]

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pyriel wrote:

Az, You have to understand, you are not normal...... So for you, it is no problem (just like me). However, majority are not as financially savvy as us..... Reading your recent post, I believe that you and I also look at emergency funds differently.

So Pyriel since your advice was in response to my post, are you saying I'm not normal?

 

[cowboy]

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Wonder Woman wrote:

pyriel wrote:

Az, You have to understand, you are not normal...... So for you, it is no problem (just like me). However, majority are not as financially savvy as us..... Reading your recent post, I believe that you and I also look at emergency funds differently.

So Pyriel since your advice was in response to my post, are you saying I'm not normal?

LOL! With the rack that you have shown me in the posts WW. Your far from normal!! Sorry I couldn't resist!!

 

[Guest]

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cowboy wrote:

LOL! With the rack that you have shown me in the posts WW. Your far from normal!! Sorry I couldn't resist!!

And I thought you were kool!!!

 

[cowboy]

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To make you feel better WWread my post on Cowboy talk when I post it, Maybe you'll feel better and maybe I will be kool again!

 

[pyriel]

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WW, I meant that in a good way. :*My choice of words are sometimes obscured.