Best Place for Cash?

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  #31  
Old 04-03-2020, 01:19 PM
retiredguy123 retiredguy123 is online now
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Originally Posted by champion6 View Post
After some research, I found this to be very interesting.
I would check out the Vanguard municipal bond and corporate bond funds. Both types have lost money year-to-date. They are good investments, but not really a substitute for cash, especially during a volatile financial time period.
  #32  
Old 04-03-2020, 04:15 PM
maryanna630 maryanna630 is offline
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Could you give the name of the bank?
  #33  
Old 04-03-2020, 05:01 PM
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Originally Posted by champion6 View Post
Good to know. Thanks! that's 0.2% better than I get at Capital One.

Besides this and mattresses, what else are investors doing with cash?
I just got notification today that Am Ex Bank is now paying 1.6%. Just downgraded.
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  #34  
Old 04-05-2020, 06:31 PM
ALadysMom ALadysMom is offline
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Originally Posted by diamond2005 View Post
Triple A rated tax free Municipals; if, it is for IRA, which cannot have tax free items, high rated Corporate Bonds, with early termination dates.
The question was where to keep cash so advice about where to invest in non-cash investments like bonds or stocks is off-topic.
  #35  
Old 04-05-2020, 07:46 PM
ALadysMom ALadysMom is offline
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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!
  #36  
Old 04-05-2020, 08:15 PM
ALadysMom ALadysMom is offline
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Originally Posted by OhioBuckeye View Post
I worry more about every bodies money that’s in bank. Will the govt. step in & start taking money from the banks? Will somebody warn us if the govt. steps in & starts using our Sav.? I always thought if the govt. had their fingers in banks anyway shape or form, they could take it or keep you from getting any of our own money. This is just a thought, but I really don’t think it’ll get that bad. Does anybody have any thoughts about that?
Please see my earlier post. I am sorry you feel so anxious and vulnerable. My parents were children of the depression so I get it but your banking fears are not well-founded in today’s reality. The US is literally the world’s “bank.” Our currency is like gold compared to most others We had been the top-performing economy In the world for quite awhile before this virus hit just a few weeks ago. The US banking system will be the last one to go bust. Think of it this way: if you keep your cash “stuffed in your mattress” it is far more vulnerable to loss than it would be in any FDIC or other insured institution (credit unions & some others have their own insurance) Our Federal Reserve Bank’s function is to back-stop our banking system.

As I posted earlier, I strongly recommend having more than one account at one bank—just in case of a local disaster/emergency or a hacker or account breach. “Don’t put all your eggs 🥚 in one basket” 🧺 (See my other post above) I hope you take some actions to gain some sense of control over your money to reduce your fears.
  #37  
Old 04-05-2020, 10:22 PM
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twoplanekid twoplanekid is offline
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Quote:
Originally Posted by ALadysMom View Post
Please see my earlier post. I am sorry you feel so anxious and vulnerable. My parents were children of the depression so I get it but your banking fears are not well-founded in today’s reality. The US is literally the world’s “bank.” Our currency is like gold compared to most others We had been the top-performing economy In the world for quite awhile before this virus hit just a few weeks ago. The US banking system will be the last one to go bust. Think of it this way: if you keep your cash “stuffed in your mattress” it is far more vulnerable to loss than it would be in any FDIC or other insured institution (credit unions & some others have their own insurance) Our Federal Reserve Bank’s function is to back-stop our banking system.

As I posted earlier, I strongly recommend having more than one account at one bank—just in case of a local disaster/emergency or a hacker or account breach. “Don’t put all your eggs in one basket” (See my other post above) I hope you take some actions to gain some sense of control over your money to reduce your fears.
It is my understanding that the Chinese are working hard to change that. It is our one great advantage at the moment. I hope the Chinese currency doesn't replace our currency to have them as the world's Bank.
  #38  
Old 04-05-2020, 10:57 PM
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I deleted this because it somehow was only a draft that went to print. My intended post is below. I keep getting caught in the quirks of the new version of TOTV.

Last edited by Boomer; 04-05-2020 at 11:17 PM.
  #39  
Old 04-05-2020, 11:04 PM
Boomer Boomer is offline
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Quote:
Originally Posted by ALadysMom View Post
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!

Hello, ALadysMom, your post is excellent. Thank you for taking the time to write it.

Your advice on the POD/TOD/Totten Trust is an important reminder of the availability of that option with bank accounts.

Also good — your advice on the issues that can happen with passwords and the simple idea of keeping a hard copy in a file.

The whole thing was good.

Boomer
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