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Old 10-03-2014, 08:45 AM
 
Location: NJ
395 posts, read 467,697 times
Reputation: 178

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May I ask a dumb question? I see where some of you recommend an IRA but I thought you really shouldn't touch those accounts until at least 59 years of age? (penalties, taxes, etc)
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Old 10-03-2014, 10:21 AM
 
8,822 posts, read 5,121,165 times
Reputation: 10086
Quote:
Originally Posted by cm5878 View Post
May I ask a dumb question? I see where some of you recommend an IRA but I thought you really shouldn't touch those accounts until at least 59 years of age? (penalties, taxes, etc)
You can access traditional IRA monies before age 59.5 with no penalty if you follow 72t rules. You still pay tax, of course. Not helpful in an emergency, but helpful if you want to retire before age 59.5.

You can access Roth contributions (not earnings) at any time for any reason, no tax or penalty. You can never replace the contributions, so it isn't something you should do without good reason.
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Old 10-04-2014, 10:49 AM
 
24,843 posts, read 32,384,569 times
Reputation: 11453
Quote:
Originally Posted by DaveinMtAiry View Post
So there are still people out there essentially keep their money under the mattress. Wow.
Sure.....the government does not need to know all of my business.
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Old 02-19-2018, 04:55 AM
 
476 posts, read 254,583 times
Reputation: 633
I know this is an old thread, but I just wanted to add one experience of mine from when superstorm Sandy hit NY, in that sometimes even a safe deposit box in a vault is vulnerable to natural disaster.

I had a safe deposit box in a bank in lower Manhattan, and the bank branch there itself was flooded including the safe room on the ground floor. Most of the safe deposit boxes were flooded too! I was lucky that my little box was up high in the room so my box did not get wet. It took the bank months to recover the boxes and move them to another branch for people to come and inspect the contents and secure them in new boxes.
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Old 02-19-2018, 07:35 AM
 
Location: Key West
140 posts, read 103,398 times
Reputation: 347
Emergency fund and car replacement fund are in online savings account with Barclays earning 1.5%. We have additional taxable investments at Vanguard.

I don't pull out any cash unless we are predicted to have a hurricane come our way, and then I'll pull about $1000 out of the bank to have on hand for that.
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Old 02-19-2018, 10:50 AM
 
1,199 posts, read 435,162 times
Reputation: 3722
Quote:
Originally Posted by cakecakecake View Post
Yeah I mean I currently have about $14K at home in the same and that would DEFINITELY blow if someone stole that safe. Damn I feel so dumb compared to you guys on here.
I was JUST ABOUT to counter with a post describing how I know several folks, relatively well-off in retirement, living well below their means and receiving anywhere from $5k to $12k per mo income who keep a few grand in cash-on-hand 'just in case', when I read the bolded above.

Get thee to a bank, ..yesterday!

YIKES!! It WAS yesterday.. Don'cha hate it when you reply to a very old thread?

Last edited by PamelaIamela; 02-19-2018 at 11:00 AM..
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Old 02-19-2018, 02:36 PM
 
Location: Limbo
6,475 posts, read 6,183,304 times
Reputation: 6239
I don't have a dollar of US currency on me or in my condo. Everything non-retirement is in checking, savings, money market, or brokerages. I haven't used an ATM in months as all spending is either on credit or auto-deducted from various accounts.

I may have $.50 laying around somewhere.
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Old 02-19-2018, 09:20 PM
 
Location: North West Arkansas (zone 6b)
2,672 posts, read 2,009,077 times
Reputation: 3670
I've been letting my pension check accumulate in a checking account. I have that account linked to a high yielding savings account but I don't bother moving it because I want to keep that money seperate and liquid in case I want to use it.

Automatic deposit to a saving account is the best way to automatically save money. At some point I'll setup a automated sweep of cash to a high yield or investment account.

I think I may have setup too many places to put my money. I guess it could come in handy when I start maxing out the FDA covered maximum, but I'm not in that situation yet.
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Old 02-20-2018, 04:45 AM
 
18,382 posts, read 20,110,894 times
Reputation: 26891
Quote:
Originally Posted by cakecakecake View Post
I get paid ever 2 weeks. I use to take out a few hundred bucks from each paycheck and save it in my own personal safe at my apartment. But now I have it set up in my account so whenever I get paid, it automatically puts the money in my savings account in the bank. So I never really see it in cash anymore. Are there any advantages/disadvantages to doing one or the other?

The reason I use to take it out and keep it with me in cash is because I like to see it grow and know that I can physically hold it. Something about putting it in some savings account made me nervous for some reason. But I'm coming around I suppose.
The problem with cash sitting in a safe is it loses value every year. You’re technically losing money. You need to start looking into other avenues to grow your money. A savings account (and I’m assuming you are talking about a typical savings account attached to your checking account) simply doesn’t give enough returns to make it worthwhile. However the banks appreciate having your money to use. What’s the percentage rate on your accounts. My checking and savings account pays .01%. But that’s why I only have my day to day money in those accounts and direct deposit stuff. Neither of these cash or savings account strategies are beneficial to you. There are some really good investment guys on here who can point you in some better yield options.

I usually keep a few thousand as a cushion in my acco7nts then a few thousand as a day to day. The cushion makes it so I never bounce anything. Not that I ever did.
I keep some cash in a safe for a emergency like earthquake if everything is down. But most of the money is in retirement, stocks, bonds, real estate etc.
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Old 02-20-2018, 11:39 AM
 
Location: Tennessee
23,560 posts, read 17,535,380 times
Reputation: 27613
My household savings account is with a local B&M credit union. I keep a small amount of petty cash at the house ($100-$200) for things like the barber and other small businesses that don't accept credit cards, or if it's a small transaction and I don't want them to pay a transaction fee.
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