Where to put money? I need some tips!

Provide more details.

Emergency fund in place?
Age?
Homeowner or intend to buy?
Financial goals?
401K? IRAs?

if you're just starting out, The first thing I did was put 3-6 months expenses into a savings account for emergency purposes. If you shop around, there are plenty of online banks that have over 1.1% APY nowadays.

TwoMarksHand said:

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if you're just starting out, The first thing I did was put 3-6 months expenses into a savings account for emergency purposes. If you shop around, there are plenty of online banks that have over 1.1% APY nowadays.

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I look at the emergency account a bit differently. I would put 3-6 months of current income in this account. Thought process being that if you lose your job you begin to replace your previous income with funds from your emergency stash. If married this number would be based on the highest earners income, assuming both partners don't lose their job at the same time. By looking at the emergency account as income replacement you can still maintain your ROTH or other investing inside your budget during this hiccup in life.

Ragoo said:

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TwoMarksHand said:

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if you're just starting out, The first thing I did was put 3-6 months expenses into a savings account for emergency purposes. If you shop around, there are plenty of online banks that have over 1.1% APY nowadays.

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I look at the emergency account a bit differently. I would put 3-6 months of current income in this account. Thought process being that if you lose your job you begin to replace your previous income with funds from your emergency stash. If married this number would be based on the highest earners income, assuming both partners don't lose their job at the same time. By looking at the emergency account as income replacement you can still maintain your ROTH or other investing inside your budget during this hiccup in life.

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That's a very good point. Everyone is different, and the jobs that my wife and I have are not subject to be taken from us. (unless the world is ending). Our e-fund is more in place for unexpected medical, auto, home, ect expenses.

TwoMarksHand said:

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Ragoo said:

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TwoMarksHand said:

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if you're just starting out, The first thing I did was put 3-6 months expenses into a savings account for emergency purposes. If you shop around, there are plenty of online banks that have over 1.1% APY nowadays.

---

I look at the emergency account a bit differently. I would put 3-6 months of current income in this account. Thought process being that if you lose your job you begin to replace your previous income with funds from your emergency stash. If married this number would be based on the highest earners income, assuming both partners don't lose their job at the same time. By looking at the emergency account as income replacement you can still maintain your ROTH or other investing inside your budget during this hiccup in life.

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That's a very good point. Everyone is different, and the jobs that my wife and I have are not subject to be taken from us. (unless the world is ending). Our e-fund is more in place for unexpected medical, auto, home, ect expenses.

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Honest question. Why do you thing this is true ? Even if you own the hog farm there is ALWAYS a possibility of an unknown event killing any job or business..except perhaps for trail lawyers ( unfortunately )

My wife is a teacher, and I am in sales...so yes I could lose my job if our company went under or if demand for automation completely fell off. I should probably revise my thinking of the e-fund, but in the worst times our company has seen (08-09) they never laid off a single person.

TwoMarksHand said:

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My wife is a teacher, and I am in sales...so yes I could lose my job if our company went under or if demand for automation completely fell off. I should probably revise my thinking of the e-fund, but in the worst times our company has seen (08-09) they never laid off a single person.

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you really need to rethink that statement. Yesterday the best sales guy I know was let go from a company he helped start 30 years ago. New management wanted that infamous " different direction" which meant they no longer wanted to pay top dollar to the top salesman. It can ALWAYS happen. Tons of teachers were let go during the budget crisis in 07 and 09 in Texas. NO ONE is immune from a job loss. You do have a reasonably high immunity but NOT absolute. And if you have kids you really need to have a healthy E-fund with at least a year worth of funds.

The Original AG 76 said:

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TwoMarksHand said:

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My wife is a teacher, and I am in sales...so yes I could lose my job if our company went under or if demand for automation completely fell off. I should probably revise my thinking of the e-fund, but in the worst times our company has seen (08-09) they never laid off a single person.

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you really need to rethink that statement. Yesterday the best sales guy I know was let go from a company he helped start 30 years ago. New management wanted that infamous " different direction" which meant they no longer wanted to pay top dollar to the top salesman. It can ALWAYS happen. Tons of teachers were let go during the budget crisis in 07 and 09 in Texas. NO ONE is immune from a job loss. You do have a reasonably high immunity but NOT absolute. And if you have kids you really need to have a healthy E-fund with at least a year worth of funds.

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Why would you need liquid investments more than a year out? Surely six months worth of income in liquid form should be enough to allow you to find a new job or otherwise replace the lost earnings. Also, six months will give you time to cash in most longer term investments if you're really in such dire straits.

GE said:

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The Original AG 76 said:

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TwoMarksHand said:

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My wife is a teacher, and I am in sales...so yes I could lose my job if our company went under or if demand for automation completely fell off. I should probably revise my thinking of the e-fund, but in the worst times our company has seen (08-09) they never laid off a single person.

---

you really need to rethink that statement. Yesterday the best sales guy I know was let go from a company he helped start 30 years ago. New management wanted that infamous " different direction" which meant they no longer wanted to pay top dollar to the top salesman. It can ALWAYS happen. Tons of teachers were let go during the budget crisis in 07 and 09 in Texas. NO ONE is immune from a job loss. You do have a reasonably high immunity but NOT absolute. And if you have kids you really need to have a healthy E-fund with at least a year worth of funds.

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Why would you need liquid investments more than a year out? Surely six months worth of income in liquid form should be enough to allow you to find a new job or otherwise replace the lost earnings. Also, six months will give you time to cash in most longer term investments if you're really in such dire straits.

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I shouldn't speak for Original Ag, but I think you can have a year's worth of income or expenses, but not all of it is in cash or liquid forms. I have a year's worth, but only 6 months is truly liquid. The rest is a mixture of inflation-protected bonds and a balanced mutual fund which are not ear-marked for retirement. I have separate retirement accounts. All in all it comes out to around 9 months of income that is in cash or bonds, and that works for me.

To each their own. I would feel absolutely uncomfortable about having 100% of my e-fund exposed to the market, but others are perfectly fine with it. I have a mixture that allows me to be conservative but not overly so, and it keeps me comfortable with the market exposure I have. If I was 100% or even majority % equities, I would always be stressed out about money.

Pendragon12 said:

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GE said:

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The Original AG 76 said:

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TwoMarksHand said:

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My wife is a teacher, and I am in sales...so yes I could lose my job if our company went under or if demand for automation completely fell off. I should probably revise my thinking of the e-fund, but in the worst times our company has seen (08-09) they never laid off a single person.

---

you really need to rethink that statement. Yesterday the best sales guy I know was let go from a company he helped start 30 years ago. New management wanted that infamous " different direction" which meant they no longer wanted to pay top dollar to the top salesman. It can ALWAYS happen. Tons of teachers were let go during the budget crisis in 07 and 09 in Texas. NO ONE is immune from a job loss. You do have a reasonably high immunity but NOT absolute. And if you have kids you really need to have a healthy E-fund with at least a year worth of funds.

---

Why would you need liquid investments more than a year out? Surely six months worth of income in liquid form should be enough to allow you to find a new job or otherwise replace the lost earnings. Also, six months will give you time to cash in most longer term investments if you're really in such dire straits.

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I shouldn't speak for Original Ag, but I think you can have a year's worth of income or expenses, but not all of it is in cash or liquid forms. I have a year's worth, but only 6 months is truly liquid. The rest is a mixture of inflation-protected bonds and a balanced mutual fund which are not ear-marked for retirement. I have separate retirement accounts.

To each their own. I would feel absolutely uncomfortable about having 100% of my e-fund exposed to the market, but others are perfectly fine with it. I have a mixture that allows me to be conservative but not overly so, and it keeps me comfortable with the market exposure I have. If I was 100% or even majority % equities, I would always be stressed out about money.

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Got it, and that makes perfect sense to me. I was assuming OA meant a completely liquid year's worth of earnings or expenses. Even long-term illiquid investments like rental properties can be exited within six months if something really bad happens.

GE said:

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Pendragon12 said:

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GE said:

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The Original AG 76 said:

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TwoMarksHand said:

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My wife is a teacher, and I am in sales...so yes I could lose my job if our company went under or if demand for automation completely fell off. I should probably revise my thinking of the e-fund, but in the worst times our company has seen (08-09) they never laid off a single person.

---

you really need to rethink that statement. Yesterday the best sales guy I know was let go from a company he helped start 30 years ago. New management wanted that infamous " different direction" which meant they no longer wanted to pay top dollar to the top salesman. It can ALWAYS happen. Tons of teachers were let go during the budget crisis in 07 and 09 in Texas. NO ONE is immune from a job loss. You do have a reasonably high immunity but NOT absolute. And if you have kids you really need to have a healthy E-fund with at least a year worth of funds.

---

Why would you need liquid investments more than a year out? Surely six months worth of income in liquid form should be enough to allow you to find a new job or otherwise replace the lost earnings. Also, six months will give you time to cash in most longer term investments if you're really in such dire straits.

---

I shouldn't speak for Original Ag, but I think you can have a year's worth of income or expenses, but not all of it is in cash or liquid forms. I have a year's worth, but only 6 months is truly liquid. The rest is a mixture of inflation-protected bonds and a balanced mutual fund which are not ear-marked for retirement. I have separate retirement accounts.

To each their own. I would feel absolutely uncomfortable about having 100% of my e-fund exposed to the market, but others are perfectly fine with it. I have a mixture that allows me to be conservative but not overly so, and it keeps me comfortable with the market exposure I have. If I was 100% or even majority % equities, I would always be stressed out about money.

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Got it, and that makes perfect sense to me. I was assuming OA meant a completely liquid year's worth of earnings or expenses. Even long-term illiquid investments like rental properties can be exited within six months if something really bad happens.

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Not really. 6 months of readily liquid with another 6 months or so readily available. There are a LOT of folks in Houston hitting multi-year anniversaries of THAT DAY ..Plus if you are talking about teachers or govt employees it probably mean relocating. That could take longer than 6 months. When I git " retired" a couple of years early I was glad that I had several years in readily available accounts.