How to Allocate Reserve Funds

4 Replies

Hey guys, I know many of you are probably like me and dont like to leave money sitting in a bank account if where it doesnt do much.

I am wondering how others allocate their reserve funds. For example: in a bank account, stocks, mutual fund, etc. Or if you keep a combination in different places. For example a certain percent in a bank account for quick access in case of an emergency, and set amounts other places that can earn better return but might take a little longer to get out.

@Brian Balthasar since it is 'reserve funds" for emergencies and immediate use it should be in liquid assets that will not likely drop in value. That would rule out stocks and bonds. I just put it in a savings account or possibly a CD with liberal withdrawal abilities.

The little bit extra you might get by getting a small extra return just is not significant enough to be concerned about. 

Find an online savings account that gives you 2%. Otherwise, reserves should always be immediately accessible.