Thank you! This is helpful as I was quite young during the GFC. Please continue to give your perspective as the potential sequel in 2022-? develops for good or ill. I saw a bad omen the other day -- that NINJA Loans have returned. No credit check. No income check. Just lots of extra fees and more interest payments. Banks seem to be SPRINTING to offload as much bad real estate inventory as possible. Have you noticed this as well?
And yes -- I absolutely will continue to stay in good standing with my W2 and work on side hustle. I recently passed having a 15 month emergency fund. Rapidly adding more due to my enhanced cash flow. Got 3 months of dry food (not enough, i'm afraid). I am projected to have 40 month Emergency savings at the end of this year. Life is good.
After 6-12 months of emergency funds in a high yield savings at 2.5% APR we would move some funds out. iBonds at 9% for 12+ money for example since you have near term liquidity secured.
Iif you took the SOFI deal we wrote about they are giving a 2.5% APR right now.
WRT the current mortgage market, it got loose and if economy gets bad there will be some good deals.
NFA - we have almost no exposure to banks becasue of the mortgage exposure and our bias from seeing the GFC and how ugly they could get. We have picked up some big insurance cos for 'financial' exposure. Higher rates should help with reserves & profitability and you can clip 4%+ divis on some big blue chip insurance companies right now.
There has been a decent amount of regs to try to force banks to hold more capital. Maybe a GFC type event doesn't happen. But lots of accounting shenanigans can go on that make the BS look more liquid and stronger than it really is.
NFA - we have almost no exposure to banks We have picked up some big insurance cos for 'financial' exposure. Higher rates should help with reserves & profitability and you can clip 4%+ divis on some big blue chip insurance companies right now.
Thank you! This is helpful as I was quite young during the GFC. Please continue to give your perspective as the potential sequel in 2022-? develops for good or ill. I saw a bad omen the other day -- that NINJA Loans have returned. No credit check. No income check. Just lots of extra fees and more interest payments. Banks seem to be SPRINTING to offload as much bad real estate inventory as possible. Have you noticed this as well?
And yes -- I absolutely will continue to stay in good standing with my W2 and work on side hustle. I recently passed having a 15 month emergency fund. Rapidly adding more due to my enhanced cash flow. Got 3 months of dry food (not enough, i'm afraid). I am projected to have 40 month Emergency savings at the end of this year. Life is good.
I know your a G and got good CFs.
After 6-12 months of emergency funds in a high yield savings at 2.5% APR we would move some funds out. iBonds at 9% for 12+ money for example since you have near term liquidity secured.
Iif you took the SOFI deal we wrote about they are giving a 2.5% APR right now.
(https://effsigive.substack.com/p/quick-bonus-sofi-savings-bonus-july you get a $300 promo and up to a 2.5% APR with direct deposit (we are doing just $50 a check now to get the higher APR on our balance. Just checked and its still going on. https://www.sofi.com/banking
WRT the current mortgage market, it got loose and if economy gets bad there will be some good deals.
NFA - we have almost no exposure to banks becasue of the mortgage exposure and our bias from seeing the GFC and how ugly they could get. We have picked up some big insurance cos for 'financial' exposure. Higher rates should help with reserves & profitability and you can clip 4%+ divis on some big blue chip insurance companies right now.
Thanks for the advice, ser. I have 12 month emergency funds stored at 3% APR now. Will be moving some to I-Bonds soon at the right time.
Appreciate your advice as always.
Excellent write-up! Thank you for the historical reminder. This definitely feels like the beginning of “slow bleed”.
To drop a cliche - history rhymes.
There has been a decent amount of regs to try to force banks to hold more capital. Maybe a GFC type event doesn't happen. But lots of accounting shenanigans can go on that make the BS look more liquid and stronger than it really is.
NFA - we have almost no exposure to banks We have picked up some big insurance cos for 'financial' exposure. Higher rates should help with reserves & profitability and you can clip 4%+ divis on some big blue chip insurance companies right now.