Where do PPers park their short term/emergency funds?

Discussion of the Bond portion of the Permanent Portfolio

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moda0306
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Re: Where do PPers park their short term/emergency funds?

Post by moda0306 » Fri Mar 25, 2011 7:39 am

Adam, I agree to some extent.  I can't see credit card companies continuing to allow you to build a balance and auto bill pay working when you can't even go to the bank and get physical cash. That just seems completely contradictory to me.  If you can't get cash, credit is tighter than a snare drum, and methinks these devices would be worth the plastic or digital ones and zeros that they consisted of.
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Pkg Man
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Re: Where do PPers park their short term/emergency funds?

Post by Pkg Man » Fri Mar 25, 2011 9:35 pm

One of the things I like about the PP is that it gives me an excuse to hold a large chunk of cash, something that I didn't do pre-PP (heck, I didn't even have a good emergency fund).  And I think that a portion of that cash, say one-month's worth of necessities, should be kept close to home where it could easily be obtained if needed.  As HB said, if the banks closed you wouldn't be the only one without cash, but why not just avoid that entirely by having some set aside for unthinkable emergencies.

As far as where to park the cash not buried in a mason jar, I have a portion in Treasury Direct T-bills, I and EE savings bonds, SHY, 401K short-term bond fund, and an online savings account.  My goal is to keep no more than a third in the savings account, with the rest in presumably more secure options.

And as far as chaps, may I suggest those from Foxcreek, they're great!  http://www.foxcreekleather.com/mens_menschaps  :)
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Re: Where do PPers park their short term/emergency funds?

Post by LifestyleFreedom » Fri Mar 25, 2011 10:13 pm

When I would travel many years ago, I would use travelers checks as a precaution because they are generally accepted everywhere.  Like the cash in your wallet, travelers checks don't earn interest; but the checks are replaced by the issuing company if they are ever stolen.  The checks also never expire; they can be used at any time in the future (as long as the issuing company is still in business).

After the trip, I would keep some of the unused checks in my car in case I needed emergency money while on the road (nowadays, I depend on my credit cards and auto club membership if I ever have a roadside emergency).  I don't know if travelers checks would still be accepted after a banking crisis (I guess it depends on what kind of crisis we have).  But I might again carry some of my cash in travelers-check form as a protection against theft.
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