Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Ok, I know this is not for everyone but hear me out.

I do not wish to keep 6 months in a "safe" harbor. But, I do keep one thousand cash in the bottom of my checking account. The excess (not for investing) I keep in what I call an alternative investment.

HOLD ON FOOLS, not *that* kind.

I buy dividend stocks (Merck, Pepsi, Power Utils) in an account with my bank. If I ever lose my job I have an agreement where I can borrow against the stocks at arounf 8% (not great, not lousy). This helps shield me from a dip in the job and stock market, while helping my get a better return thana lousy CD or savings.

About the transaction fees...

I read where people may wish to keep the E-fund in CDs. Well, if you cash out a CD prior to term you still get hit with penalties.

Thoughts, suggestions on my strategy?

Background: I'm 24, college degree, enough computer certs where I can at least get a helpdesk if I ever get laid off. I maxed out my IRAs and 401K and as much as I am comfortable with in insurance "investments" [half scoff, half chuckle])
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.