reasonable amount of money to keep in the bank...

[Michigan Planner]

Originally Posted by Piobaire

Strictly my opinion and keep in mind my PoV was shaped by a very poor childhood:

One year of living expenses. Divide by 12 and use laddered CDs.

People will give you a million reasons why this is wrong and that doesn't bother me. I sleep very soundly though.

This is the exact setup that my wife and I use along with the addition of another 3 to 6 months worth of pay in a regular plain old savings account.

We used to have a bunch of money in money market accounts, but when interest rates began to tank, we switched it over to the CD ladders. Not quite as liquid, but the way ours is set up, there is one maturing every 6 months so if something were to happen in the interim, we can always dip into the savings account.

 

[bigbris1]

Not much. Life is short. Spend it while you can.

 

[Hombre Secreto]

Originally Posted by bigbris1

Not much. Life is short. Spend it while you can.

^^^^^^^^^^^^^^^^^^^

Words of wisdom.

 

[rach2jlc]

Originally Posted by jefe

Suze Orman is a marsupialed whore. With a bad tan. She is the financial equivalent of Fox News.

I'd be happy to loan you my all-purpose slam: "XXX is the Bobcat Goldthwait of YYY."

So, "She is the financial equivalent of Bobcat Goldthwait."

 

[w.mj]

Originally Posted by Explosivo

This is damn solid advice if you can afford to implement it. Good show.

How exactly is that good advice? Even a 12-month CD earns 35 basis points right now. At that point, why not just keep a stack of cash buried in your back yard?

 

[smruss]

Originally Posted by jefe

Suze Orman is a marsupialed whore. With a bad tan. She is the financial equivalent of Fox News.

 

[Reevolving]

Originally Posted by 1969

There are better places to earn a buck and still go liquid in 3-4 days.

What takes 3-4 days to get liquid?
Clearly you're not referring to a bond fund/ETF...

 

[Piobaire]

Originally Posted by Reevolving

What takes 3-4 days to get liquid?
Clearly you're not referring to a bond fund/ETF...

Horse and blow.

 

[Master-Classter]

Originally Posted by Piobaire

Horse and blow.

 

[Joffrey]

Originally Posted by bigbris1

Not much. Life is short. Spend it while you can.

You just made me feel better about my self.

 

[bigbris1]

 

[SkinnyGoomba]

Tough to say, I think it really depends on the person in the hot seat.

If its someone who is self employed and has no possibility of opening an unemployment case than they're going to need more money (probably something in line with PIO's figure).

If it's someone risky like they work under the table for cash or have a head full of steam and often just up and quit their job than they'll need more money.

If it's someone in a normal job that only stands the risk of being 'let go' and would be able to apply for UI and possibly receive a buy-out package than that person would only need the amount required above an beyond what UI would pay.

Right now I think it would be safe to say that you could be unemployed for a year or more depending on your field and your abilities, but I think you could make a financial model for it in any case that would give you a reasonable number. I believe this since I dont think it's reasonable to hoard tons of cash in lieu of the alternatives. I do like Pios Laddered CD strategy for this which would prevent eating away at your nest egg too quickly.


And stay away from the shoe damage threak!!!

 

[chronoaug]

reasonable amount to keep in mattress?

 

[johnapril]

Enough for a cup of fear.

 

[RSS]

Originally Posted by thekunk07

...at all times? opinions, thoughts, etc.?
It depends very much on your financial requirements.

I try to keep on hand cash equal to a year's expenses.