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Emergency fund
jecornel
Member Posts: 9,737
How many months do you have set aside if you lost all incoming monies?
Any way to protect emergency funds from inflation? online savings accounts are shit. If you never use it and it just sat there for 15 years you lost a lot of potentials gains by investing.
Ramit Sethi is adamant to build up a year of emergency cash.
Any way to protect emergency funds from inflation? online savings accounts are shit. If you never use it and it just sat there for 15 years you lost a lot of potentials gains by investing.
Ramit Sethi is adamant to build up a year of emergency cash.
Comments
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I think you need to have a minimum of 6 months net household income in cash, even if it's losing a point or two per year due to current savings accounts / CD's not keeping pace with inflation. 12 months is better obviously.
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We're at 4 1/2 months in ours (split the difference between Dave's recommended 3-6).
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We are only about 2 months saved, and are working on expanding that. The IVF treatments ate most of our previous savings.
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Cross the T... Carry the one... Enhance...
Back of the napkin says about negative four months. My plan is to start a fight club that blows up the credit card company if it comes down to it. -
I've tried to follow the rule of a year's gross salary. I was down from that for about 4 years during overlapping college tuitions, but am working my way back up.
I may stay away from that much cash given the concerns you articulated, but I'm conservative and assume that I would not be able to replace my gig within, say, 6 mos. So a year is my paradigm, even though I know it's a bit excessive. -
Also, thanks for posting Little Jimmy Cornel.
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I kept enough for 2 weeks to flatten the curve
As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness
Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice -
Given the volatility and uncertainty of the times, maybe it's not overly conservative to have a year.RaceBannon said:I kept enough for 2 weeks to flatten the curve
As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness
Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice
PS: My fund, which my colleagues and I used to call the "Fuck You" or "Fuck Off" fund, and which is now called the "Oh Shit!" fund, is kept in account that I never look at or think about, and about which my Chief Spending Officer knows nothing. She literally doesn't know it exists. It must be nice to have blonde hair, blue eyes and big tits and go through life wondering why things always just seem to work out for you. Just lucky I guess. -
Fully invested in hog futures, if I need cash I'll tap into my HELOC
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Your wife's name is HELOC?!?BearsWiin said:Fully invested in hog futures, if I need cash I'll tap into my HELOC
C'mon - even in @creepycoug 's gentlemens club I had to jump on that softball.
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Agreed.PurpleThrobber said:
Your wife's name is HELOC?!?BearsWiin said:Fully invested in hog futures, if I need cash I'll tap into my HELOC
C'mon - even in @creepycoug 's gentlemens club I had to jump on that softball.
Re HELOC, this is a little old fashioned, but I try not to think of the primary home as an investment and instead think of it as a basic necessity. For that reason, I like to own it outright and then I know I only ever have to keep the electricity on and pay my property taxes. I can survive for a good long while on that basis no matter how bad it gets. -
I have 4 months of cash. Originally I was going for 6 months but I keep skimming anything over that 4 months to buy stocks and mutual funds. I’m comfortable doing that so, 4 months is my revised goal.
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Heh. Many women have similar accounts that their husbands know nothing about. As my forensics accountant buddy likes to say, “keeps me in business”.creepycoug said:
Given the volatility and uncertainty of the times, maybe it's not overly conservative to have a year.RaceBannon said:I kept enough for 2 weeks to flatten the curve
As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness
Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice
PS: My fund, which my colleagues and I used to call the "Fuck You" or "Fuck Off" fund, and which is now called the "Oh Shit!" fund, is kept in account that I never look at or think about, and about which my Chief Spending Officer knows nothing. She literally doesn't know it exists. It must be nice to have blonde hair, blue eyes and big tits and go through life wondering why things always just seem to work out for you. Just lucky I guess.
RE: the emergency funds, obviously more is better, but speaking as someone who went through two layoffs in her younger years, people should also come up with emergency *contingency plans* along with cash reserves.
What discretionary spending could you cut out immediately (streaming services, gym memberships, etc.)? If push came to shove, what could you sell? Who would be willing to help you out with free child care? What if you had to move temporarily?
Reason I bring this up is you can stretch your emergency fund dollars if you’re smart about it. Most people (pre-COVID) are only out of work about 2-3 months. You probably don’t have to burn as much savings for job loss if you’re smart about it. (Not saying job loss isn’t an emergency, but I am shocked how many people burn through their savings quickly because they didn’t prepare or were willing to make some short term sacrifices.) -
All true. Although knock on wood I haven't had to live on the fund, by whatever name I give it, and so it's also smart to pre-think through all the adjustments you'll make to minimize the bleeding.Doog_de_Jour said:
Heh. Many women have similar accounts that their husbands know nothing about. As my forensics accountant buddy likes to say, “keeps me in business”.creepycoug said:
Given the volatility and uncertainty of the times, maybe it's not overly conservative to have a year.RaceBannon said:I kept enough for 2 weeks to flatten the curve
As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness
Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice
PS: My fund, which my colleagues and I used to call the "Fuck You" or "Fuck Off" fund, and which is now called the "Oh Shit!" fund, is kept in account that I never look at or think about, and about which my Chief Spending Officer knows nothing. She literally doesn't know it exists. It must be nice to have blonde hair, blue eyes and big tits and go through life wondering why things always just seem to work out for you. Just lucky I guess.
RE: the emergency funds, obviously more is better, but speaking as someone who went through two layoffs in her younger years, people should also come up with emergency *contingency plans* along with cash reserves.
What discretionary spending could you cut out immediately (streaming services, gym memberships, etc.)? If push came to shove, what could you sell? Who would be willing to help you out with free child care? What if you had to move temporarily?
Reason I bring this up is you can stretch your emergency fund dollars if you’re smart about it. Most people (pre-COVID) are only out of work about 2-3 months. You probably don’t have to burn as much savings for job loss if you’re smart about it. (Not saying job loss isn’t an emergency, but I am shocked how many people burn through their savings quickly because they didn’t prepare or were willing to make some short term sacrifices.) -
And have some side hustles. Multiple income streams.Doog_de_Jour said:
Heh. Many women have similar accounts that their husbands know nothing about. As my forensics accountant buddy likes to say, “keeps me in business”.creepycoug said:
Given the volatility and uncertainty of the times, maybe it's not overly conservative to have a year.RaceBannon said:I kept enough for 2 weeks to flatten the curve
As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness
Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice
PS: My fund, which my colleagues and I used to call the "Fuck You" or "Fuck Off" fund, and which is now called the "Oh Shit!" fund, is kept in account that I never look at or think about, and about which my Chief Spending Officer knows nothing. She literally doesn't know it exists. It must be nice to have blonde hair, blue eyes and big tits and go through life wondering why things always just seem to work out for you. Just lucky I guess.
RE: the emergency funds, obviously more is better, but speaking as someone who went through two layoffs in her younger years, people should also come up with emergency *contingency plans* along with cash reserves.
What discretionary spending could you cut out immediately (streaming services, gym memberships, etc.)? If push came to shove, what could you sell? Who would be willing to help you out with free child care? What if you had to move temporarily?
Reason I bring this up is you can stretch your emergency fund dollars if you’re smart about it. Most people (pre-COVID) are only out of work about 2-3 months. You probably don’t have to burn as much savings for job loss if you’re smart about it. (Not saying job loss isn’t an emergency, but I am shocked how many people burn through their savings quickly because they didn’t prepare or were willing to make some short term sacrifices.)
Got the corporate downsize/wellbye once and that will never fucking happen again.
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You’re lucky.creepycoug said:
All true. Although knock on wood I haven't had to live on the fund, by whatever name I give it, and so it's also smart to pre-think through all the adjustments you'll make to minimize the bleeding.Doog_de_Jour said:
Heh. Many women have similar accounts that their husbands know nothing about. As my forensics accountant buddy likes to say, “keeps me in business”.creepycoug said:
Given the volatility and uncertainty of the times, maybe it's not overly conservative to have a year.RaceBannon said:I kept enough for 2 weeks to flatten the curve
As proof that God protects idiots I was a the top of my savings last March. Rode out 2020 with some fed checks and UI after the shut down in July of the bidness
Haven't done shit in 2021 except collect UI but I still have at least a year in savings. So I have that going for me which is nice
PS: My fund, which my colleagues and I used to call the "Fuck You" or "Fuck Off" fund, and which is now called the "Oh Shit!" fund, is kept in account that I never look at or think about, and about which my Chief Spending Officer knows nothing. She literally doesn't know it exists. It must be nice to have blonde hair, blue eyes and big tits and go through life wondering why things always just seem to work out for you. Just lucky I guess.
RE: the emergency funds, obviously more is better, but speaking as someone who went through two layoffs in her younger years, people should also come up with emergency *contingency plans* along with cash reserves.
What discretionary spending could you cut out immediately (streaming services, gym memberships, etc.)? If push came to shove, what could you sell? Who would be willing to help you out with free child care? What if you had to move temporarily?
Reason I bring this up is you can stretch your emergency fund dollars if you’re smart about it. Most people (pre-COVID) are only out of work about 2-3 months. You probably don’t have to burn as much savings for job loss if you’re smart about it. (Not saying job loss isn’t an emergency, but I am shocked how many people burn through their savings quickly because they didn’t prepare or were willing to make some short term sacrifices.)
While the most common emergencies for families are major household repairs and car expenses, those can be mitigated somewhat by good maintenance and can be budgeted out/negotiated. It’s the sudden medical issue or change of life stuff (divorce, forced relocation) that I think are the most devastating. I try to think about how to respond to those. -
Investment return >>> HELOC interestcreepycoug said:
Agreed.PurpleThrobber said:
Your wife's name is HELOC?!?BearsWiin said:Fully invested in hog futures, if I need cash I'll tap into my HELOC
C'mon - even in @creepycoug 's gentlemens club I had to jump on that softball.
Re HELOC, this is a little old fashioned, but I try not to think of the primary home as an investment and instead think of it as a basic necessity. For that reason, I like to own it outright and then I know I only ever have to keep the electricity on and pay my property taxes. I can survive for a good long while on that basis no matter how bad it gets. -
Well, yeah, I get that ... I am after all the King of the Finance board. I acknowledge it's a little old school but if my investments go sideways I like to own outright the thing that keeps me out of the rain ... a considerable risk where I live.BearsWiin said:
Investment return >>> HELOC interestcreepycoug said:
Agreed.PurpleThrobber said:
Your wife's name is HELOC?!?BearsWiin said:Fully invested in hog futures, if I need cash I'll tap into my HELOC
C'mon - even in @creepycoug 's gentlemens club I had to jump on that softball.
Re HELOC, this is a little old fashioned, but I try not to think of the primary home as an investment and instead think of it as a basic necessity. For that reason, I like to own it outright and then I know I only ever have to keep the electricity on and pay my property taxes. I can survive for a good long while on that basis no matter how bad it gets. -
Damn, hopefully it workedgreenblood said:We are only about 2 months saved, and are working on expanding that. The IVF treatments ate most of our previous savings.
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I am too cash heavy. Over 12 months is fucking stupid, but I am fucking stupid. Need to just invest my way into something
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Yuge proponent of the Emergency/Fuck You Fund. Especially when you're pour, it affords you the privilege of of evening out the swings as life happens so you're not scrambling life-or-death style in an emergency..
I've kept 2 mos as I work through paying off debt. DR recommends only $1k whilst paying off debt, but fuck that business. It did a lot to ease the mind at the beginning of Covid.
As of today, it's going to come in really fucking handy as the dealership 'recommends' $9k in repairs to the whip. It's looking like the EF/FUF may be a down payment on a new one. Thank real God part of the pay-off-debt early cycle is the depreciating asset, otherwise I'd be upside down and really fucked. Now, it's just super fucking annoying.
Did I mention, I'm still pour. FMFYFE
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So these are all great questions that I've seen in this thread so I'll try to hit on the major highlights (probably going to be a tad long but will hit the points quickly) ...
Before getting to a "what's a good amount to have as part of an emergency fund" question, the first that I think you have to realistically ask yourself are what are your financial goals? Is it to buy a home? A 2nd home? Kids college? Retirement? Retire earlier than 65+? The answer to many of these types of questions will help inform what you're objectives should be. Additionally, how much time you have to reach these goals also matters.
My general rule of thumb would lead toward having the "rainy day fund" to cover a full year of salary. In reality, you can probably get away with 12 months of expenses. When thinking about the expenses it's important to factor in everything ... mortgage, car payments, monthly recurring expenses, any anticipated 1-time expenses to come, etc.
@Doog_de_Jour makes a really good point about having the ability to adjust your spend downward in trying times. I think that's generally good advice to always have in your mind what spend is must have's vs like to have's in spend.
That said, if you ever find yourself in a situation that requires dipping into the savings, your stress levels are already going to be high. Cutting expenses and living effectively bare bones can just add to the stress you're already feeling. Then add to it the stress that you're going to experience trying to go through the job search (which becomes more difficult and niche as you advance in your career), the interviews, and ultimately some rejection, and stress is going to be at a super high level. This is why planning comes into play and making sure that you have enough to cover a rainy day as comfortably as possible.
This is an exact situation that I went through in my career when I left a company due to downsizing after a divestiture with a decent sized severance package. I was expecting that the amount of time to find a new position would be relatively quick, took a month plus from the search to take a vacation and enjoy the summer, and then found that as I entered into the Holiday season, I was finding it really hard to find the right niche. The stress is very real and in the grand scheme of things I had a relatively low stress situation given my personal circumstance. But there's stress. There's doubt. There's pressure. So to the extent that you can eliminate any of that, my recommendation is to do so.
Other elements that really matter in terms of what you're goals and objectives are include what your 401k looks like (how much is one contributing), are there any stock or ownership rights tied into your current job? Vesting horizons? How liquid are those interests? Where the mortgage is at on the horizon? Is the real estate if sold today at a profit or under water? Are you planning on retiring where you currently live or in a different location with a lower cost of living? All of these things you'll want to consider.
One of the other things that you'll want to consider within the rainy day fund is how much are you willing to draw down on it? In other words, what % of that are you willing to consider to be dry powder to use as opportunities arise whether it's through the market dropping substantially (like it did 12 months ago), a great real estate opportunity, etc. One of the benefits of being conservative in the RDF is that it increases liquidity and ability to act when you can. That said, if you draw down it probably makes sense to prioritize the ability to rebuild back to desired levels. Think of this fund really as your own insurance policy to cover you in a disaster environment.
Finally, what I think everybody should think about are retirement goals. Everybody should be thinking about what kind of number and/or annual expenses that they want to spend as they move into retirement. And let's be really honest, retiring is really the reward for all of the hard work that you've put in in life. It's the time to enjoy the fruits of your labor. So to the extent that you can retire early and enjoy life, that's a goal that at least to me is worth pursuing. Not only that, but having a goal of what you want gives you the ending point of what you need to be comfortable with that retirement. Taking where you are today and comparing it to where you want to be effectively lays out the blueprint for what you need to get there.
Just as a simple example, let's say that you determine that you need roughly $100K a year in income to cover expenses, travel, etc. A really simple path forward is to assume that all of your liquid assets going forward is invested in tax free muni bonds. Over a long term horizon, it's not uncommon for high quality tax free muni bonds will pay out between 3-5% per year. So even at 3%, if your liquid asset base at retirement is $3M, you'll really have no problem not only covering your spending goals, but maintaining that $3M principal going forward. That overall lump sum really should be viewed as your rainy day fund at that point because your ability to add to that going forward isn't super clear without adding risk. If it goes to $0 then ???
The last thing that I'd add is that as you approach retirement, I think it also really makes sense to think about what alternative things you could do to create income other than what you do. What happens if you get shown the door and for a lot of "wink wink" illegal reasons tied to age bias, etc. that you can't realistically find a new role. What can you do either as your own consultant or business owner, another skill set that you have that you can monetize, etc. to make sure that you stay on track for retirement. Really important to keep that in mind.
A lot of the above is pretty high level stuff but hopefully it makes some sense about all the different considerations that you need to think about when it comes to retirement planning. It's something that I'd recommend everybody taking a look at every 12-24 months about where they are and how they're proceeding in relation to their goals and objectives.
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I've pretty much lived my entire life without an emergency fund. Once I bought a house I considered my Heloc to be my emergency fund.jecornel said:How many months do you have set aside if you lost all incoming monies?
Any way to protect emergency funds from inflation? online savings accounts are shit. If you never use it and it just sat there for 15 years you lost a lot of potentials gains by investing.
Ramit Sethi is adamant to build up a year of emergency cash.
But if I was forced to have one (with a gun to my head) I would take 18 months of salary and put it all into blue chip stocks or ETFs. Less is more here. The fewer you hold the better you can screen and the fewer companies that you have to continue researching.
I've done this several times with money I was holding for short term use.
Set trailing stop losses (10 %) on each security and review the holdings once per month.
Never, ever reinvest proceeds from a sale triggered by a stop loss order the same month.
Also, if the market ever loses 10% (or more) in a day - review your holdings that night.
If the fund ever is less than 75% of the starting investment ( or its high point )- then sell everything. Hold the cash which will be more than 12 months of salary even if you are the worst market timer in the history of the US stock market.
You can tell that I loathe unproductive capital. And, I am willing to risk a little of it to ensure that none of it is idle.
Bottom line is that the US stock market almost always bounces back fast. And, it has really done little but trend up for its entire life with a couple of blips along the way. Even the 20% Black Monday (1987) one day drop was recovered in just a couple of years.
Idle cash is like an empty airline seat. Once the door is shut that potential revenue (for an unfilled seat) is gone forever.
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All I’m hearing is stock and cash.
I’ve got 6 months set aside of which half is precious metals and a quarter is physical cash in a safe. Seems like inflation is inevitable, and zero interest savings/checking feels like negative 3%.
Anyone else have inflation resistant ideas? -
You are seeing stocks and cash because those are the only serious options.LoneStarDawg said:All I’m hearing is stock and cash.
I’ve got 6 months set aside of which half is precious metals and a quarter is physical cash in a safe. Seems like inflation is inevitable, and zero interest savings/checking feels like negative 3%.
Anyone else have inflation resistant ideas?
My wife got a mid six figure payout from her mom's estate about half a year ago. I did some extensive research and found nothing at all offered by any financial institution/brokerage/etc that I contacted.
We have plans for that money but very little immediately.
If any one has other ideas I would love to hear them. -
Great post.EwaDawg said:
I've pretty much lived my entire life without an emergency fund. Once I bought a house I considered my Heloc to be my emergency fund.jecornel said:How many months do you have set aside if you lost all incoming monies?
Any way to protect emergency funds from inflation? online savings accounts are shit. If you never use it and it just sat there for 15 years you lost a lot of potentials gains by investing.
Ramit Sethi is adamant to build up a year of emergency cash.
But if I was forced to have one (with a gun to my head) I would take 18 months of salary and put it all into blue chip stocks or ETFs. Less is more here. The fewer you hold the better you can screen and the fewer companies that you have to continue researching.
I've done this several times with money I was holding for short term use.
Set trailing stop losses (10 %) on each security and review the holdings once per month.
Never, ever reinvest proceeds from a sale triggered by a stop loss order the same month.
Also, if the market ever loses 10% (or more) in a day - review your holdings that night.
If the fund ever is less than 75% of the starting investment ( or its high point )- then sell everything. Hold the cash which will be more than 12 months of salary even if you are the worst market timer in the history of the US stock market.
You can tell that I loathe unproductive capital. And, I am willing to risk a little of it to ensure that none of it is idle.
Bottom line is that the US stock market almost always bounces back fast. And, it has really done little but trend up for its entire life with a couple of blips along the way. Even the 20% Black Monday (1987) one day drop was recovered in just a couple of years.
Idle cash is like an empty airline seat. Once the door is shut that potential revenue (for an unfilled seat) is gone forever. -
7.62 commie ammoLoneStarDawg said:All I’m hearing is stock and cash.
I’ve got 6 months set aside of which half is precious metals and a quarter is physical cash in a safe. Seems like inflation is inevitable, and zero interest savings/checking feels like negative 3%.
Anyone else have inflation resistant ideas? -
I forgot to say you need discipline. In spades.creepycoug said:
Great post.EwaDawg said:
I've pretty much lived my entire life without an emergency fund. Once I bought a house I considered my Heloc to be my emergency fund.jecornel said:How many months do you have set aside if you lost all incoming monies?
Any way to protect emergency funds from inflation? online savings accounts are shit. If you never use it and it just sat there for 15 years you lost a lot of potentials gains by investing.
Ramit Sethi is adamant to build up a year of emergency cash.
But if I was forced to have one (with a gun to my head) I would take 18 months of salary and put it all into blue chip stocks or ETFs. Less is more here. The fewer you hold the better you can screen and the fewer companies that you have to continue researching.
I've done this several times with money I was holding for short term use.
Set trailing stop losses (10 %) on each security and review the holdings once per month.
Never, ever reinvest proceeds from a sale triggered by a stop loss order the same month.
Also, if the market ever loses 10% (or more) in a day - review your holdings that night.
If the fund ever is less than 75% of the starting investment ( or its high point )- then sell everything. Hold the cash which will be more than 12 months of salary even if you are the worst market timer in the history of the US stock market.
You can tell that I loathe unproductive capital. And, I am willing to risk a little of it to ensure that none of it is idle.
Bottom line is that the US stock market almost always bounces back fast. And, it has really done little but trend up for its entire life with a couple of blips along the way. Even the 20% Black Monday (1987) one day drop was recovered in just a couple of years.
Idle cash is like an empty airline seat. Once the door is shut that potential revenue (for an unfilled seat) is gone forever. -
Also a great post @Tequilla . There are a few things in there we should unpack. Especially your thoughts on retirement.
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The idea of an emergency fund is good, but the idea you need to have a year’s worth of cash around I view as an out-of-date concept. 50 years ago when interest rates were high and credit/cash was hard to come by that was one thing, but in this day and age when cash is easy and most assets are somewhat liquid
Agree with much of this...a lot of the hold cash assumptions were set for a different time when the Fed wasn’t pumping money and banks weren’t looking for any reason to lend. If you have decent assets...significant 401k, retirement savings, house equity, etc...why keep cash on the side when you have a million and one ways to access cash to live if you need it for a year or more? Especially if you aren’t over aggressive on your investments (ie have 100% of your life savings in GME).EwaDawg said:
I've pretty much lived my entire life without an emergency fund. Once I bought a house I considered my Heloc to be my emergency fund.jecornel said:How many months do you have set aside if you lost all incoming monies?
Any way to protect emergency funds from inflation? online savings accounts are shit. If you never use it and it just sat there for 15 years you lost a lot of potentials gains by investing.
Ramit Sethi is adamant to build up a year of emergency cash.
But if I was forced to have one (with a gun to my head) I would take 18 months of salary and put it all into blue chip stocks or ETFs. Less is more here. The fewer you hold the better you can screen and the fewer companies that you have to continue researching.
I've done this several times with money I was holding for short term use.
Set trailing stop losses (10 %) on each security and review the holdings once per month.
Never, ever reinvest proceeds from a sale triggered by a stop loss order the same month.
Also, if the market ever loses 10% (or more) in a day - review your holdings that night.
If the fund ever is less than 75% of the starting investment ( or its high point )- then sell everything. Hold the cash which will be more than 12 months of salary even if you are the worst market timer in the history of the US stock market.
You can tell that I loathe unproductive capital. And, I am willing to risk a little of it to ensure that none of it is idle.
Bottom line is that the US stock market almost always bounces back fast. And, it has really done little but trend up for its entire life with a couple of blips along the way. Even the 20% Black Monday (1987) one day drop was recovered in just a couple of years.
Idle cash is like an empty airline seat. Once the door is shut that potential revenue (for an unfilled seat) is gone forever.
Back when you had a broker who had a paper trail to sell stocks and it took time to transfer money and people cared about credit for a home mortgage much less a frowned upon cash out refinance sure...keep a good chunk of change in case you need it. Now if you have assets everyone is tripping over themselves to lend/give you more money...it’s kinda nuts but it’s the current reality and it can’t change on a dime. I’m not saying live month to month but holding a year’s worth of living expenses in cash getting 0% seems way too conservative.
Now watch everything crash tomorrow just to show this is a bad take...
