Author Topic: Shuffling funds around - emergency stash, FU money, investments, etc...  (Read 1234 times)

jeromedawg

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Hey all,

So I'm trying to rearrange where some funds are. Currently between checking and savings, there's close to $60k. I just moved most of it to the checking in anticipation of moving it out to Fidelity for investing but wanted to get some second opinions as to what to do... I left $3k in the savings because I have Mango Money ACH setup and just for extra "cushion" for a quick emergency stash. I'm not sure how much I should leave in the checking but I'm thinking about $15k - I use the checking to make payments for utilities, rent to my dad, etc and also have this setup as my direct deposit account. That said, I'd be looking to move roughly $40k into my Fidelity, where I would just increase my current investments in the S&P500 fund or what not.

Should I leave more in the checking/savings? Or perhaps consider elsewhere to stash whatever money I want to move out? Either way, I know there's currently too much stagnant cash sitting in those accounts now and that I should probably move it out.

Any suggestions?

Sibley

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Depends on how you use your accounts.

for me:
Checking - money that can be spent. Extra $ is transferred to savings.
Savings - My emergency fund, I determine the level I want, and once I'm there I don't touch it.
Online savings - downpayment savings fund. Right now, all extra transferred from checking goes here.
I don't have a taxable investment account, but in future if needed it would be the dumping ground of choice (after tax advantaged accts of course).

Personally, I get antsy if my checking balance is over $4k. It doesn't work with how I budget/emotions.

Don't forget to max out your tax advantaged accounts though.

slugline

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This all depends on what's going on in your life.

My personal rule-of-thumb -- Money I don't think I'll be tapping within seven years definitely gets invested in stock funds. Money I think I'll be tapping within two years definitely stays liquid in a bank account. If I have a time horizon in-between, I'll need to make a judgment call on how much volatility I think I can stand.

jeromedawg

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Depends on how you use your accounts.

for me:
Checking - money that can be spent. Extra $ is transferred to savings.
Savings - My emergency fund, I determine the level I want, and once I'm there I don't touch it.
Online savings - downpayment savings fund. Right now, all extra transferred from checking goes here.
I don't have a taxable investment account, but in future if needed it would be the dumping ground of choice (after tax advantaged accts of course).

Personally, I get antsy if my checking balance is over $4k. It doesn't work with how I budget/emotions.

Don't forget to max out your tax advantaged accounts though.

There's no real benefit I have with the savings account I have through Chase - interest rates are very low so I'm getting a few cents for keeping my money there. Perhaps I should consider moving it to an account with higher interest rates and yields, like Discover or something... as far as tax advantaged accounts, it's really just the Roth IRA that I have any control over maxing out and now perhaps the UTMA account for our son (btw: is there a limit on how much can be contributed to the UTMA)? 401k is already set for coming out of my paycheck, and I'm maxing it out pretty much. So right now, it's really just a matter of figuring out how to shuffle the post-tax monies.