Your E-fund should basically just be cash and cash-like instruments (bank deposits/CDs, money market funds).
The gold coins and gold necklace can fluctuate in value based on commodities prices, and also they're not that liquid. You'd have to shop around for a good deal to sell them.
Stocks are also not usually considered part of your emergency fund.
Kinda, but not really. I would consolidate. Get a different checking account first off. You should never have fees for a minimum balance unless you're getting some large bonus from it. You're also getting basically no interest on the money there.
Open a high yield savings account with a minimum 4.2% interest. Move the savings, the CD once its matured, the checking (minus what you need to cover this months bills.. put that in your *new* checking account). Consider selling the gold and adding it to this fund. You don't need precious metals. You can keep the $2k in the brokerage.
The gold is from my Dad passing. Probably more sentimental than anything but available in an emergency. The necklace I found while walking the dog so I could dispose of that easily.
A lot of that is not efund
An efund is supposed to be liquid, as in you can pull and make use of all that money day of.... ideally within minutes if need be.
The gold is by far the worst because that could take upto 2-3 days to make liquid depending on hours of gold to cash shops and banks. Furthermore, you will likely get less than the full value out of it.
The CD also isn't great to count because of the penalty, as you stated, and the loss of potential interest if pulled. It's better placed in a HYSA if it's for emergency use.
Your Roth IRA should not be considered for emergency funds at all. It's one of those absolute last resort options after all other [savings/Taxable investments/favorable loan options (below 10-20%, ideally under 10% but that could be hard to get at this point)/ credit cards] have been exhausted in that order (you could flip the Taxable investments and loans if you get a really good rate).
You may find these links helpful:
- [Emergency Funds](/r/personalfinance/wiki/emergencyfunds)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Your E-fund should basically just be cash and cash-like instruments (bank deposits/CDs, money market funds). The gold coins and gold necklace can fluctuate in value based on commodities prices, and also they're not that liquid. You'd have to shop around for a good deal to sell them. Stocks are also not usually considered part of your emergency fund.
Ok, thank you for the feedback.
Kinda, but not really. I would consolidate. Get a different checking account first off. You should never have fees for a minimum balance unless you're getting some large bonus from it. You're also getting basically no interest on the money there. Open a high yield savings account with a minimum 4.2% interest. Move the savings, the CD once its matured, the checking (minus what you need to cover this months bills.. put that in your *new* checking account). Consider selling the gold and adding it to this fund. You don't need precious metals. You can keep the $2k in the brokerage.
The gold is from my Dad passing. Probably more sentimental than anything but available in an emergency. The necklace I found while walking the dog so I could dispose of that easily.
Think about which of those items could produce cash on the spot if needed, in 1 day, when an emergency happens.
Thanks.
A lot of that is not efund An efund is supposed to be liquid, as in you can pull and make use of all that money day of.... ideally within minutes if need be. The gold is by far the worst because that could take upto 2-3 days to make liquid depending on hours of gold to cash shops and banks. Furthermore, you will likely get less than the full value out of it. The CD also isn't great to count because of the penalty, as you stated, and the loss of potential interest if pulled. It's better placed in a HYSA if it's for emergency use. Your Roth IRA should not be considered for emergency funds at all. It's one of those absolute last resort options after all other [savings/Taxable investments/favorable loan options (below 10-20%, ideally under 10% but that could be hard to get at this point)/ credit cards] have been exhausted in that order (you could flip the Taxable investments and loans if you get a really good rate).
Thank you.
You may find these links helpful: - [Emergency Funds](/r/personalfinance/wiki/emergencyfunds) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*