I agree. I think I had too much of my emergency fund in cash over the years. Today I am increasingly using short term bond funds or equity funds to park my money. I keep enough cash for convenience in paying bills. Comments on negatives of paying taxes out of brokerage accounts??? I sort of view that as if I'm paying more taxes out of those vs a savings account I probably made more money that way plus decent chance I'm saving on capital gains rates vs rates on interest from a bank. Putting money under your pillow will certainly save on taxes and lowers one's capital risk, but inflation is a cost/risk too. My Ally account (to pay bills and aforementioned convenience) is yielding 0.5% and inflation is greater than that - so it loses money.
Comments
I agree. I think I had too much of my emergency fund in cash over the years. Today I am increasingly using short term bond funds or equity funds to park my money. I keep enough cash for convenience in paying bills. Comments on negatives of paying taxes out of brokerage accounts??? I sort of view that as if I'm paying more taxes out of those vs a savings account I probably made more money that way plus decent chance I'm saving on capital gains rates vs rates on interest from a bank. Putting money under your pillow will certainly save on taxes and lowers one's capital risk, but inflation is a cost/risk too. My Ally account (to pay bills and aforementioned convenience) is yielding 0.5% and inflation is greater than that - so it loses money.
Post: Padding the Mattress
Link to comment from August 21, 2021