Current Events > I have 10k in emergency funds shoukd i invest it or leave it?

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Hello i need some advice I got 10k sitting in a "high intrest" account of 1.2% but I think I'd rather invest it in the market. I have a separate account I'm using for investment but I'm wondering if I should just say fuck it and invest everything.

I wont need the 10k anytime soon this is strictly a emergency fund

(Also I've been waiting for some sort of market crash/correction to happen for some time now so I've been buying already but I'm wondering if I should just throw this in as well)

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grape jelly and cats

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buy bitcoin

or go buy all the toilet paper you can

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1.2% interest is pretty damn high nowadays.

The market is in shambles right now and its hard to tell when its gonna bottom out. Its a big risk to invest but there is a big payoff possible if you buy super low and sell in several months/years when its high again.

If you have a stable job that is unlikely to be lost even in this situation and you can comfortably pay your expenses...I say go for it(but leave at least a couple thousand in the fund).

If your situation is even a little uncertain just leave it there.

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If I had 10k I didnt know what to do with, I would keep it in a high interest savings that I'd pretend wasnt there.I would also set up an auto draft that puts say $100 in a month.Then throw in large amounts when I could, at 20k I'd invest 10k of that.Rinse and repeat.

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pikachupwnage posted...

1.2% interest is pretty damn high nowadays.

The market is in shambles right now and its hard to tell when its gonna bottom out. Its a big risk to invest but there is a big payoff possible if you buy super low and sell in several months/years when its high again.

If you have a stable job that is unlikely to be lost even in this situation and you can comfortably pay your expenses...I say go for it(but leave at least a couple thousand in the fund).

If your situation is even a little uncertain just leave it there.

I have a steady full time job that pays decent and a part time job that's stable, my income isnt a problem right now my job isn't effected to much by this I'll get paid out if I were ever to get let go so I'm ok there.

Yea my worry is if I should wait longer for things to bottom out I already spent my spare money on stocks throughout the weeks I'm just tempted to go all in right now.


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How much of your emergency funds do you have physically? I'd have a portion of it on hand. I was listening to a podcast earlier yesterday and the podcaster (a former hedgefund trader) said that had the stock market dropped too far down, the banks would no longer have any money to fund people's accounts. I assume this is because they're busy betting on stocks, longing (betting the price will go up) with high margins (high risk high returns by multiplying the amount by some multiple. If you're doing x5, you get 5x the gains but get liquidated if the stock goes down by the percentage of 1/5 or 20%. There x700 options available in certain outlets, at least in crypto ). Essentially, they could have gotten liquidated.

Do note that the market has been highly vulnerable for sometime, the federal reserve has been injecting over a trillion dollars since September via Repo operations. The coronavirus is just accelerating the inevitable.

dj1200 posted...

buy bitcoin

The bitcoin was designed SPECIFICALLY to prevent these kinds of crises. What's troublesome is that the price is going down with the stock market and the pulling the rest of crypto down with it. Personally I don't own bitcoin and REFUSE to get shaken out of my chainlink stack. I don't care what happens. Not. ****ing. Selling.

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modena posted...

If I had 10k I didnt know what to do with, I would keep it in a high interest savings that I'd pretend wasnt there.I would also set up an auto draft that puts say $100 in a month.Then throw in large amounts when I could, at 20k I'd invest 10k of that.Rinse and repeat.

I sort of been doing that in the past 3 years most of my money has been going onto a 401k company match and a savings account I'm just now getting started in investing the savings I've built up.

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I'd keep what you need for a couple months of expenses and put the rest into some kind of investment account. Unless you want to spend a significant amount of your free time checking up on companies/stocks, I would avoid picking specific stocks and just put your money in some index funds. With things being so volatile you might want to spread out whatever you put in over a couple of months.

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Sad_Face posted...

How much of your emergency funds do you have physically? I'd have a portion of it on hand. I was listening to a podcast earlier yesterday and the podcaster (a former hedgefund trader) said that had the stock market dropped too far down, the banks would no longer have any money to fund people's accounts. I assume this is because they're busy betting on stocks, longing (betting the price will go up) with high margins (high risk high returns by multiplying the amount by some multiple. If you're doing x5, you get 5x the gains but get liquidated if the stock goes down by the percentage of 1/5 or 20%. There x700 options available in certain outlets, at least in crypto ). Essentially, they could have gotten liquidated.

Do note that the market has been highly vulnerable for sometime, the federal reserve has been injecting over a trillion dollars since September via Repo operations. The coronavirus is just accelerating the inevitable.

The bitcoin was designed SPECIFICALLY to prevent these kinds of crises. What's troublesome is that the price is going down with the stock market and the pulling the rest of crypto down with it. Personally I don't own bitcoin and REFUSE to get shaken out of my chainlink stack. I don't care what happens. Not. ****ing. Selling.

Yea I'm afraid of that as well I have everything with my bank I could withdraw it if I wanted but ud have to close the intrest account.

Worst case scenario I loose my jobs and investments and live off the emergency fund and what I have left in my 401k but that's a extreme "if" I'm reading all sorts of things about the economy from various sources and the general consensus is to ride it out things will go back up. Not trying to short anything most of what I bought is from large companies. Although I feel buying into Exxon was a waste of my money so far.

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Jabodie posted...

I'd keep what you need for a couple months of expenses and put the rest into some kind of investment account. Unless you want to spend a significant amount of your free time checking up on companies/stocks, I would avoid picking specific stocks and just put your money in some index funds. With things being so volatile you might want to spread out whatever you put in over a couple of months.

Yea I'm looking into all my options do you know any good index funds?

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apocalyptic_4 posted...

I sort of been doing that in the past 3 years most of my money has been going onto a 401k company match and a savings account I'm just now getting started in investing the savings I've built up.

That's great.My situation though I would always want the 10k in savings as a minimum since I got there.3 more years to double that isnt too bad at all so I'd just keep doing what your doing until 20k in savings.But anytime during that if you see a good deal I wouldn't invest no more than 85% of savings.

Just love having a buffer as comfortable as 10k or more not touched.Great deal though TC,seems like you know what your doing.

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The big questions are...

• How hurt will you be if you end up in a situation where you need cash? Because the market keeps going down, so if you invest $10k now, you are basically guaranteed to lose some of that value almost instantly for the foreseeable future.
• How long do you plan on investing? Kind of ties in to the first question - if you're hoping for some big return in a couple of months, you're possibly going to be out of luck there.

I would personally not invest $10k in savings. I don't know if I read your message wrong but it looks like it took you a few years to get to that point? If that's the case you might consider only investing a few thousand of it, not the full amount, and keep some cushion there for emergency.

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invest 3K save the rest. Honestly if you have enough money reserved for expenses and emergencies there's no point in keeping your money sitting in a bank instead of making smart investments.

Having $10,000 in some prime stocks is way more lucrative than just collecting weak ass interest.

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apocalyptic_4 posted...

Yea I'm afraid of that as well I have everything with my bank I could withdraw it if I wanted but ud have to close the intrest account.

Worst case scenario I loose my jobs and investments and live off the emergency fund and what I have left in my 401k but that's a extreme "if" I'm reading all sorts of things about the economy from various sources and the general consensus is to ride it out things will go back up. Not trying to short anything most of what I bought is from large companies. Although I feel buying into Exxon was a waste of my money so far.

At the very least (and because I can't tell if my message got through), I'll reiterate that you should cash out $2000 out of the bank and keep at home. If the banks crash, we'll have a case of Lebanon and Venezuela on our hands where we can't get our money.

And my condolences to your 401K.

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apocalyptic_4 posted...

I wont need the 10k anytime soon this is strictly a emergency fund

Isn't the point of an emergency fund that you might need it sometime soon in case of an emergency? I'd say keep it in some low interest account that you can quickly convert to cash.


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Sad_Face posted...

At the very least (and because I can't tell if my message got through), I'll reiterate that you should cash out $2000 out of the bank and keep at home. If the banks crash, we'll have a case of Lebanon and Venezuela on our hands where we can't get our money.

And my condolences to your 401K.

I feel like it's good to have cash on hand, but on the other hand if the banks are crashing to the point where you can't access your money, we'll probably have bigger issues than not having physical money.

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I'd love to have that much

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Sad_Face posted...

At the very least (and because I can't tell if my message got through), I'll reiterate that you should cash out $2000 out of the bank and keep at home. If the banks crash, we'll have a case of Lebanon and Venezuela on our hands where we can't get our money.

And my condolences to your 401K.

I understand I think that's a pretty extreme situation but i get what your saying I'm just paranoid about having cash at home. My situation is i have 10k in emergency funds and over 30k in investments so far including the 401k.


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Hexenherz posted...

I feel like it's good to have cash on hand, but on the other hand if the banks are crashing to the point where you can't access your money, we'll probably have bigger issues than not having physical money.

Oh yeah definitely. I expect feel hyperinflation is a real possibility. It happened to a number of South American countries, most notably Venezuela and Argentina. The economy is horribly at risk because the Coronavirus has halted it.

http://archive.ph/xwAGz

And honestly, all of this is bullish for crypto tbqh. The whole point of the bitcoin is to create an alternative banking system that can't be so manipulated and propped up. For the bitcoin to thrive, our current banking system must fall.

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apocalyptic_4 posted...

Yea I'm looking into all my options do you know any good index funds?

Fidelity currently offers zero charge index funds. Of course, it's still privately owned vs. Vanguard which isn't, and tbh it doesn't really matter which specific one you take.

Just go for anything called a total market stock/ bond/ foreign stock and proportion your investments to your risk tolerance. Fidelity and Vanguard both offer low cost index funds which are probably your best bet.

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EndOfDiscOne posted...

Isn't the point of an emergency fund that you might need it sometime soon in case of an emergency? I'd say keep it in some low interest account that you can quickly convert to cash.

Yeah this you're supposed to keep an emergency fund liquid in case you need it.

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Ideally, your emergency fund should be entirely liquid. If you don't feel you need that much... now might be a decent time to invest.

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Now is a good time to invest if you can find the right investment.

That said, I wouldn't clear the bank account out completely because life likes to give us emergencies

If you can afford to drop money into a share or a few of TVIX Id highly recommend that instead of crypto/Bitcoin. Its gone up 4x in the past 2 weeks alone and will only continue to garner a decent return if COVID-19 fever continues and the overall market continues to tank.

Its not a permanent buy-and-hold but as long as shit is super volatile, itll make you decent money in the near term.

Read up on it and understand what its used for if you have any interest. Think of it as a hedge for rocky market times.

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Invest that

CE_gonna_CE posted...

If you can afford to drop money into a share or a few of TVIX Id highly recommend that instead of crypto/Bitcoin. Its gone up 4x in the past 2 weeks alone and will only continue to garner a decent return if COVID-19 fever continues and the overall market continues to tank.

Its not a permanent buy-and-hold but as long as shit is super volatile, itll make you decent money in the near term.

Read up on it and understand what its used for if you have any interest. Think of it as a hedge for rocky market times.

Huh, I might as well buy a couple of these. Hopefully my deposit clears soon.

In other news RIP my portfolio lol, down 33.5% ($6,718 - I only started investing in stocks individually last year). It's just funny that I was up about 8% and that was this really tall peak, but now I look at the graph and it's virtually just a blip compared to this.

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Dumb question since I normally trade during hours - if I enter a Market Buy order after hours for something that's likely to increase in value during after/before market hours, will my order just process at the opening price or will it cancel because the value's higher than what it was when I put the order in?

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Hexenherz posted...

Dumb question since I normally trade during hours - if I enter a Market Buy order after hours for something that's likely to increase in value during after/before market hours, will my order just process at the opening price or will it cancel because the value's higher than what it was when I put the order in?

The former. A market buy will purchase at opening price at the start of the trading day.

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Keep it in a high yield account