Keep my regular Checking/Savings account?

Investing
#1

Hey everybody:

Wanted some thoughts on saving/emergency fund/investing. I’ve been struggling with the thought of keeping a good chunk of change (20k-25k) in a regular savings account. In my mind, when will I TRULY need $20k immediately.

My initial thoughts are to take at least half of that and keep it in a taxable brokerage account (Fidelity since my Roth IRA is there). I currently do not max out my 457b, but I just hate seeing that money just sitting there in my Chase account knowing it can be invested (even with knowing the risk of going down).

Somebody talk me off the ledge if I’m missing something, but the more I think about it I don’t even want a regular bank account and just keep it all in Fidelity! Thanks!

#2

Hi Marcus,

If you feel comfortable with a smaller emergency fund, I say go for it! Worst case scenario you can take money back out of your taxable brokerage account. Worst worst case scenario, the market drops when you need the money. Some people are fine with a $5k emergency fund, but some prefer $30k. I say do what you feel comfortable with :slight_smile:

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#3

@mbaskin2005 going off of what Vivi says: It’s a comfort zone thing.
I’m married and my husband and I have very different opinions on comfort. He doesn’t feel the need for a big liquid emergency fund. I come to the table with a money scarcity mindset, and I want to hoard all the cash under the bed. We compromise and keep about 2-3 months of EXPENSES (not income) in a money market. I was able to come down in my need to save a ton liquid because we’re both very secure in our careers or very employable so the likelihood of actually needing much liquid quickly isn’t likely.

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#4

Thank you for sharing this Hollie!!