As of today's post the best performing
Savings Account Interest Wasting Account APY was -5.97%Article A So I asked my self why am I just throwing money away?
Why should I put 6-12 months of living expenses in to a low risk savings account that would help me out if I lost my job? I thought about this over and over again and I finally came up with...
Oh Oh, what about the reasons outside of me that could land me in the unemployment line such as the current economy?If I created an account thats' sole purpose was a safty net for when I lost my job I must be doing some thing wrong, so I no longer have a savings account with 6-12 months of living expenses since I am the best and I would never do something stupid to get fired.
For those tough times I have a standard investment account that mimics the S & P
- I started the account with what used to be in my Interest Wasting Account
- I add 5% of my income to this account and 15% to my other accounts
- I started this account in April of 2009 so in a few weeks I will be able to withdrawl with out getting hit by short term cap gain tax if I needed to.
If all else fails and I need my money I can take one lump sum ( the money that has been invested longer than a year) with smaller withdrawls if needed every 2 weeks after the lump sum.
Yes this would all be taxed but all said and done my gains would be greater in the S & P compared to a savings account.
I know i decided to get in to investing @ the perfect time but besides the most recent decade I think any 5 yr period the s and p would have beat the average savings rate.
Article A- This was figured out by taking the first quarter S & P return of 6.17% minus the average savings rate of .2%