Question for my Cash guysm?

YellowSnow

The Snow family tries to maintain a year's worth of net take home pay in the rainy day fund protected by the FDIC. I just got an email from our High Yield Savings account that the interest rate is down to .80%. I guess I can't complain too much since we just got a 30 year fixed at 2.95% but still it's annoying.

Is there any other relatively save haven for savings besides CD, money markets, etc? I'm not like @swaye and don't have the balls to just keep it in guns and Rolex watches.

Swaye

I don't know man, Rolex watches are a pretty good appreciating asset class.

greenblood

Go to a local bar after 12am and make a bet with the local drunk on the ESPN NBA bubble playoff game that is playing on replay.

YellowSnow

Swaye said:

I don't know man, Rolex watches are a pretty good appreciating asset class.

We put a small amount into Rolex as you know.

greenblood

Start a Cannabis business

UW_Doog_Bot

80% lowers and ammo until after the election.

godawgst

If you have a 10 year time, precious metals could be a place to go. Not today after the run silver has had, but when you can only get 2% yield tops in the bank and it has to be there for 10 years, the bar to beat that is really low.

doogie

Have you thought about putting it all into the Robinhood IPO?

BleachedAnusDawg

The only problem with cash is it's vulnerable to becoming worthless if there's a big jump in inflation. The rate at which the Fed is making free money appear out of nowhere has me a little worried about that. How much liquidity do you need?

MikeDamone

Ladder municipal bonds.

YellowSnow

BleachedAnusDawg said:

The only problem with cash is it's vulnerable to becoming worthless if there's a big jump in inflation. The rate at which the Fed is making free money appear out of nowhere has me a little worried about that. How much liquidity do you need?

I want to have a year's worth of household expenses not exposed to any short term downturns in the markets.

Inflation is tricky to predict and since 2009 everyone says it's coming but hasn't materialized. Doesn't there have to be higher demand chasing a limited number of goods to really get inflation going?

greenblood

Ideally collecting interest shouldn't be the primary goal here. Like you said, this is a rainy day fund. Even if it doesn't collect any interest, it's serving it's purpose. I kind of think an entire year is a little much considering you can cut back expenses and make 6 months last close to a year if you had to. But really, just don't touch it, and any additional funds you have dump them into credit card, car, trailer, or school debt. The interest you are saving by paying these off will at least keep up with the market all day long.

YellowSnow

greenblood said:

Ideally collecting interest shouldn't be the primary goal here. Like you said, this is a rainy day fund. Even if it doesn't collect any interest, it's serving it's purpose. I kind of think an entire year is a little much considering you can cut back expenses and make 6 months last close to a year if you had to. But really, just don't touch it, and any additional funds you have dump them into credit card, car, trailer, or school debt. The interest you are saving by paying these off will at least keep up with the market all day long.

Good points. We have no debt other than a mortgage and intend to keep it that way.

FireCohen

Banks run various promotions for deposits. Citi is giving out $700 for 50k deposit - currently moved my cash there. Also Marcus has no penalty cd that will get you 10 bps more just moving it there