Let talk $$$

pkrfctr

Registered User
Location
Spanish Fork, UT
#1
Lets talk about money. What does everyone prefer to do with their liquid and semi-liquid funds? high yield savings, CD's, which banks do you like? Anyone using Ally, Aspiration, etc.... Where are you seeing the best saving rates?
While we're at it we might as well talk long term non-liquid funds too.
 

Homefryy

Premium Member
Premium Member
Location
Salt Lake City
#2
I am currently saving for a house down payment and have been putting all that money in an Ally savings account that has a 2% interest rate which is pretty nice. I have heard their customer service is good although I have never had to use it (the best customer service is the one you never need). I like how easy it is to open multiple savings accounts if you want to easily separate money that is set aside for different purposes.

I am young and have lots of student loans to pay between my wife and I so the only non-liquid funds are just what I have in my 401k.
 

pkrfctr

Registered User
Location
Spanish Fork, UT
#4
Please tell me what you define as short and long term?

Do you want 100% security or are you willing to take risk?
Didn't really mention short vs long term as much as liquid vs non-liquid. Although it isn't a stretch to say liquid = short term. For me I'd say short term is probably 12 months or so.
As far as risk, I'm a business owner with almost everything I have sunk into my current venture so I'm not exactly risk adverse ;). However for this discussion I was more thinking low risk, easy access savings/emergency type funds.
 
Location
Ogden, UT
#5
I've set aside an emergency fund in the form of a online savings account with MySavingsDirect.com, my experience with them has been great. APY tends to fluctuate throughout the years but it by far outperforms my Wells Fargo accounts. Currently My Savings Direct APY = 2.4%.
 

jeeper

Currently without Jeep
Location
So Jo, Ut
#8
I really like money. A lot. It makes me happy. I don't make a lot of it, but with careful management I live an decent life.
I am also self employed, so money and jobs are not consistent.
We keep it pretty simple.
For short term, keep a stash in a credit union account for emergencies, car trouble, groceries in time of income shortage, etc.
For long term, find a trusted investment adviser and give them my money to do their magic. Being a professional in a field is something to give value to, and is worth paying for at times. The amount of time and effort it takes to study, lean about, check up on, manage, and change between investments is well outside of my ability.
 

spaggyroe

Man Flu Survivor
Location
Lehi
#9
For me, liquid funds = monthly living expenses, as well as emergency funds. Living expenses are in a normal checking account earning hardly anything. Emergency funds are in a money market account earning barely more than that, but it is pretty accessible if needed (which is the point). For years now, I haven't really seen any great options to park short term investments, so I keep those buckets to a minimum. I've paid down debt which I feel has been a better option. I chuckle a little at the term "high yield savings", as really only the very best savings account options that are currently available meet or beat the inflation rate.

For long term investments, I'm an index fund guy (at least at this point in my life).
 
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glockman

I hate Jeeps
Location
Pleasant Grove
#11
I have my emergency fund in an Ally savings account. I think I'm earning 2.5% right now. Not great but way better than >1% in a CU or standard savings account. I can transfer it to my credit union checking account in under a week so it's pretty liquid.

I like this account because it is easy for me to hide money from myself there.
 

Caleb

Super Moderator
Super Moderator
Supporting Vendor
Location
Riverton
#12
I'm similar to @glockman and use Ally too. Great rates and very easy access to my money when needed. You can get a debit card through them too so if you need immediate access to your money for some reason, you can transfer from the high interest savings account to checking immediately. Or, as mentioned, very easily (and all online) transfer to your local bank/cu.
 

Noahfecks

El Destructo!
Premium Member
#13
Brokered CD's will pay higher interest but in the current interest rate environment you could take a bath if you needed liquidity before the maturity. Unlike traditional bank CD's, brokered CD's have a risk of loss. if you have to sell one of these off before maturity you are going to get what someone is willing to pay you for it in a commodities market, meaning if interest rates have risen since you bought in you are going to sell at a discount to your cost basis. of course the inverse is true if interest rates fall, you could sell for a profit. i repeat, you could take a major loss if you have to sell ahead of a maturity.
I would buy different maturities at the beginning setting yourself up so that a good portion of yours funds are maturing every 3 months so you are never too far out from a liquidity event.
 

pkrfctr

Registered User
Location
Spanish Fork, UT
#14
Brokered CD's will pay higher interest but in the current interest rate environment you could take a bath if you needed liquidity before the maturity. Unlike traditional bank CD's, brokered CD's have a risk of loss. if you have to sell one of these off before maturity you are going to get what someone is willing to pay you for it in a commodities market, meaning if interest rates have risen since you bought in you are going to sell at a discount to your cost basis. of course the inverse is true if interest rates fall, you could sell for a profit. i repeat, you could take a major loss if you have to sell ahead of a maturity.
I would buy different maturities at the beginning setting yourself up so that a good portion of yours funds are maturing every 3 months so you are never too far out from a liquidity event.
All the CD's I've seen are doing about the same as the higher savings accounts at 2.5%ish. Are brokered higher than that?
 
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