Have you ever listened to podcasts or read books by Dave Ramsey or Suze Orman? They are my favorite financial advisors, besides my Dear Old Dad. Both give very practical, common sense advice for average people in plain language.
I believe both of them would advise that you consider separating your cash into two accounts, if you have enough.
Please don’t make yourself a target for crime by hoarding cash in your home! Natural disasters like fires, hurricanes & tornadoes can make your mattress a very bad choice, too. If you had to go to the hospital or long-term care your mattress would be the first place any thief would look (and some thieves are those you love & trust)
Account # (1) “emergency” account kept accessible to you in a local physical building (Brick-and-mortar). You will sleep better if you have 3 to 6 months of living expenses in a local brick-and-mortar institution. You can use the BankRate website to locate one if you don’t have one you like. Citizens Bank in TV might be a good choice for this. I also like Credit Unions. Insured balance (FDIC or others) only.
Account # (2) an FDIC insured account for the remainder of your cash nest egg. This account could be in the same institution as the emergency account but a separate account which might be a CD, Savings account, or a Money Market Interest bearing checking account. Whatever you choose with some interest. BankRate is a good resource to guide you to “higher” interest (nothing is really earning high interest these days but remember higher returns usually come with higher risk)
Why have the second account? Because it serves as your reserved “nest egg” It is not as likely that both accounts would be hacked. And you are less likely to carelessly spend the reserved funds. #2 may not be quite as readily available for you to use in case of an emergency—especially if it’s invested in a Certificate of Deposit (CD) which could have penalties for early withdrawal. The account may or may not be local
but I would set up electronic transfers from account #2 to #1 just in case you ever need to do that.
Oh and a bit of fantastic advice from my Wise Old Dad...when opening any new individually-owned accounts, always name a beneficiary (some financial institutions allow up to 3) on each new account. If you don’t have any beneficiaries already named on a pre-existing account, be sure to add them. That way when you die, (& we are all going to die) each account’s beneficiary(s) are entitled to get their portion of the remaining balance of your account by simply presenting your death certificate and their drivers license & SSN. Easy-peasy, no red tape, no waiting, free of taxes & without IRS reporting requirements. (For surviving spouses who had joint accounts, the survivor is the beneficiary who gets the balance.)
One last point: if you have signed up for electronic statements from your banks, IRAs, 401Ks, 403Bs or other investment accounts please keep at least one recently printed paper statement in your important belongings & make sure it is accessible to your heirs. Many people are unaware that electronic statements for online accounts are password-protected so they can be VERY difficult for your heirs to locate and/or claim. Most heirs only know about your affairs based on the paper trail you leave behind. I suspect that unclaimed accounts due to electronic-only statements will be a huge issue in the future. Grief & depression can make it exceptionally difficult for heirs to follow the breadcrumbs anyway.
Stay safe Villagers! I pray that very soon we will be enjoying “the lifestyle” again with a fresh burst of gratitude!
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