Originally Posted by lewdog:
There are NO safe stocks. In a market downturn or correction, even the big company stocks can be cut in half. If this is money you may need in a few years, don't put that on stocks. Example, don't put your emergency savings fund in stocks.
If this is money you may not need for 5+ years, I'd probably choose SPY or some of the big blue chip companies like AAPL, AMZN, V, DIS, MSFT.
Right. I don't want you to think I'm about to throw every dime I've got in stocks.
It won't be a whole nest egg and it's 100% money that will not be needed any time soon (barring some sort of disaster).
Originally Posted by Buehler445:
Couple things, if you're capping out the IRA and still looking to invest, do the 401K. It does not affect your IRA limit and has a 17K cap per year.
The other thing you can do is set up ROTH. That will give you another 6K limit. and Roth is probably smart for the under 50 crowd, which IIRC you are.
Yeah, I talked about it before but I had an old 401k that was rolled over into what I've learned is a traditional IRA. I've been meaning to get on the ROTH thing for a while now.. and, yes, definitely under 50. [Reply]
Originally Posted by lewdog:
Example, don't put your emergency savings fund in stocks.
Out of curiosity, where would you put your emergency fund? I have money set in an HSA to cover any medical emergency, but want to have another 5-10k set aside for any other emergency that might pop up. Would be nice to get some return on it over sitting in a savings account. [Reply]
Originally Posted by myselff77:
Out of curiosity, where would you put your emergency fund? I have money set in an HSA to cover any medical emergency, but want to have another 5-10k set aside for any other emergency that might pop up. Would be nice to get some return on it over sitting in a savings account.
Originally Posted by myselff77:
Out of curiosity, where would you put your emergency fund? I have money set in an HSA to cover any medical emergency, but want to have another 5-10k set aside for any other emergency that might pop up. Would be nice to get some return on it over sitting in a savings account.
Savings Account.
You don't want that kind of thing having stock exposure. If you insist on sticking it in an investment account, I wouldn't go any narrower than SPY.
Potentially you could look into a bond fund. VBTLX is Vanguard's Bond Index Fund. Bonds could potentially be a play, they're not going to get much lower, as interest pretty much cannot get lower, and if interest rates rise, so should it.
Originally Posted by myselff77:
Out of curiosity, where would you put your emergency fund? I have money set in an HSA to cover any medical emergency, but want to have another 5-10k set aside for any other emergency that might pop up. Would be nice to get some return on it over sitting in a savings account.
Originally Posted by Buehler445:
Savings Account.
You don't want that kind of thing having stock exposure. If you insist on sticking it in an investment account, I wouldn't go any narrower than SPY.
Potentially you could look into a bond fund. VBTLX is Vanguard's Bond Index Fund. Bonds could potentially be a play, they're not going to get much lower, as interest pretty much cannot get lower, and if interest rates rise, so should it.
Still, Savings Account.
Yup, same advice you’ll get from me. Needs to be super safe and accessible at ANY time without risk of declining value.
I have 6 months (some say this excessive) of expenses sitting in emergency savings. Came in handy this year when we could pay in cash an unexpected need of getting a new roof and AC units. Working on building it back up now too.
It’s boring in a savings account but it’s for emergencies, play it safe. [Reply]
