Man do I love this show! You guys get me all fired up and reaffirm me that I am doing the right thing even though I see the opposite with people around me. Love you guys !
33:30 is so true. That's my motivation about having cash right now. When Warren Buffett stars getting some cash, it might be a good idea to evaluate my liquidity.
By FAR my favorite and most trusted financial content. Thank you for taking your roles seriously and providing so much quality information to the community!
I love videos like this - I nerd out over all the tiny optimizations, whether it's the current cashback credit cards I have on rotation or the accounts I keep our cash in. I'm still very early in the wealth-building journey, but it makes me feel like I'm not so crazy so focus on the details. Sure, at our wealth level it's only a matter of a few hundred or possibly a thousand dollars per year, but to me it's about the mindset. I worked hard for this money - why wouldn't I want to make the most of every single penny?
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
I agree. There's a lot of potential in the market. My friend introduced me to a financial advisor in 2023 Professional Chrissy Barymoer and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream to start a restaurant in New Jersey and still earn five figures in monthly dividends.
{That's true I know Barymoer. I met him at a conference in New York in 2022 where he introduced us to his business strategy, he helped me cover my student loans with ease and so many more to be mentioned
I've been using 100% federal treasury money markets like FDLXX to also avoid state income tax on the interest. I'm at 5.3% marginal in WI, so at current ~5% rates that's an extra 0.25% I get to keep after taxes vs SPAXX or similar.
VUSXX for those on Vanguard to eliminate state income tax on the interest like they said ^^, same thing as FDLXX just with Vanguard instead of Fidelity. Like said above, if you're in a state with high income tax (CA, NY, etc etc) you may want to look into these.
Another great informative episode! I thought a money market account was a money market account until I looked into the yield that the MM mutual funds were paying vs. the MM account at my credit union. Also, I too advantage of an incentive offer for a high yield savings account that offered a cash bonus of x if you deposited a minimum of y and kept it deposited for 3 months. Also, it is important to mention that the "cash" in your HSA is probably in a money market account. It is a good idea to keep enough in the mm to pay for the deductible / yearly max out of pocket amount that your health care insurance plan specifies. Love this show.
I had about $100k locked into a CD paying about half a percent when interest was still low. When it started going up to about 4% I decided that rather and wait the six or seven months left for it to mature I’d withdraw it early, take a three months worth of interest penalty and then reinvest at the much higher rate. The amount I lost was peanuts compared to what I gained. I wouldn’t do this if the differences were small but it was a material amount of money left on the table if I just let my account linger in those obsolete interest rates.
Yep. I use them for annual recurring expenses and next year's Roth IRA contribution instead of leaving the money in a 0.1% brick and mortar credit union. What I do is if I buy an 13 week for $100 and the investment/withdrawal is $98 then I put the $2 difference into an online money market account as if they took out $100. The $2 then earns interest at a slightly lower interest rate. It's really a saving hack, but it's a small bump in the yield. Even after taxes it helps provide a discount for those short term expenses. I've called some companies I pay and asked if they offer a payment discount for prepayment in advance and the discounts offered is half of what I'm earning now.
I use cds for one of my emergency funds. It’s specifically for the type of emergency where we (myself, my wife, or god forbid, both)lose our incomes. It’s a monthly ladder of 1yr cds, with amounts based on expected expenses after lifestyle adjustments. I like how it is self regulating. If we just had a pool of money available, we may be less likely to adjust and budget appropriately. This way, we know how much we will get per month and be forced to budget against it. Meanwhile, we have another emergency fund for unplanned large expenses
Congratulations Brian you made on the valuetainment show I watch both of you guys religiously. And you deserve all the hard work and success. I always thought in mind eventually there will be a lot of people who want to see your work
Hey money guys. First, thank you so much for all you do! You’ve blessed my life. Question: I have a hard time differentiating between having extra cash on hand to take advantage of opportunities and timing the market. One you praise and the other you condemn. When is holding more cash than you need in hopes of a great opportunity timing the market and when is it Warren Buffet level brilliance? I think of the comparison you did of the worst market timer, the best, and the dollar cost averager. Waiting for a fire sale seems like trying to be the best timer rather than the dollar cost averager.
Not sure if I understand completely but, keeping money in savings is fine, it just need to have a purpose. For example you could have two types of Savings: 1.) Emergency fund 2.) large purchase fund (car,house,wedding,buying dips) You can DCA as normal and then when there is a 20% dip or more u could pull from your large purchase fund to buy some stocks. It’s lowkey just for feel good gains & easy money. if u DCA without ever buying huge amounts during dips you still will be fine due to all the time in the market u have. So It’s fine to have money “sit” as long as you know what the money is sitting for. When you have money sitting with no real purpose then it’s problem cus then ur money isn’t working for u. Hopefully I explained what u were asking bro 🤙
I use a series of 6, rolling/laddered 6-month CDs as my emergency account. If an emergency came up, I always have one month of expenses at the ready, and have a month to unlock the next if needed. This was designed more to account for the event of a layoff, but it doesn’t work great for emergencies that require a lot of cash up front. I do have a large slush fund in a money market to account for that edge case, though. Would you still advise against using CDs for an emergency fund considering this approach?
Does anyone know anything about cash value life insurance plans and their legitimacy? A financial advisor was saying they have a constant 4% return that's unaffected by the market and is tax free
What exactly happens to your money if the unfortunate “break the buck” scenario happens in money market mutual funds? If you have 50k sitting there, what realistically do you lose and is it permanent?
This happened with at least one fund during the 2008 financial crisis. IIRC, the Fed instituted a temporary emergency policy which effectively gave FDIC insurance for money market mutual funds.
@@voodootroisyes I heard about that but it’s unclear to me what essentially happens to the account values & if they temporarily dip then bounce back etc. or is there a permanent loss.
@@MKK-wg7fz It seems that when a money market fund officially breaks the buck, the fund gets liquidated, and the shareholders are given the resulting $0.## of cash per share.
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
I'd avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery.
This is why I entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Hi! Sharing a word of caution to consider as you search for a financial advisor, feel free to take the advise if it’s helpful, if not feel free to disregard🙏 Always make sure you look for a fiduciary (a financial advisor that is legally obligated to make financial decisions in YOUR best interest) and not a general financial advisor (because they will always make investment decisions in THEIR best interest) to make as much in fees as possible. There are horror stories of people who hire financial advisors that manage your portfolio in a way that they get paid out in huge fees and you get terrible returns, just google it. Also look out for financial advisors who charge an Assets Under Management (AUM) fee which can range from 0.5-2% of your portfolio value. For instance, a portfolio worth $1M with a 1% AUM means you’ll be paying $10,000 per year in just AUM fees.
Couple things as they are more concerned about timeless content than actually helping anyone: the savings account free withdrawal limit will almost certainly be 6 per statement cycle (2024) federal regulations and all. Think they skipped over Money Marked (the bank account) will also likely be subject to that same 6 free withdrawals per cycle (again currently 2024), not really supposed to be your main checking account
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
By the way your aren't a good case study for keeping a cash emergency reserve because you didn't have one, we went through a cycle, and absolutely nothing bad happened to you because of it. If anything you are a case study for how emergency reserves aren't necessary.
It's a weak investment and expensive insurance, so a failure on both counts. In the _best_ case scenario, they invest your money on your behalf and only return a portion of the total return. That's how they make money.
@@vulpixelful wait but you just said "investment". Cash accounts are not "investments" so I get the sense you're not really comparing to cash accounts.
What a beautiful Friday! The sun is shining, the birds are chirping and the Bo's are so excited. Life is good
😄
Man do I love this show! You guys get me all fired up and reaffirm me that I am doing the right thing even though I see the opposite with people around me. Love you guys !
Same here!
33:30 is so true. That's my motivation about having cash right now. When Warren Buffett stars getting some cash, it might be a good idea to evaluate my liquidity.
By FAR my favorite and most trusted financial content. Thank you for taking your roles seriously and providing so much quality information to the community!
Bo is sooo Excited for every show. Love the energy
I love videos like this - I nerd out over all the tiny optimizations, whether it's the current cashback credit cards I have on rotation or the accounts I keep our cash in. I'm still very early in the wealth-building journey, but it makes me feel like I'm not so crazy so focus on the details. Sure, at our wealth level it's only a matter of a few hundred or possibly a thousand dollars per year, but to me it's about the mindset. I worked hard for this money - why wouldn't I want to make the most of every single penny?
I bet Bo is excited today too
How excited is he?
Good bet bro, we love to hear it
@@pbk6190 SO excited! ❤❤🎉 He’s more excited than the Pointer Sisters!
@@pbk6190 sooooo excited
I get tired of hearing Bo say how excited he is 👎🏽
Me: Looks like it’s gonna be a fairly boring episode about HYSA and short term treasuries
Bo: I AM SO EXCITED
I bought your book last week. It’s an awesome resource and clarified a lot of the FOO steps.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
I agree. There's a lot of potential in the market.
My friend introduced me to a financial advisor in 2023 Professional Chrissy Barymoer and even though I was skeptical, I went on. I finally was making enough monthly dividend to quit my soulless job and pursue my dream to start a restaurant in New Jersey and still earn five figures in monthly dividends.
Hello, I’m 37 and I am not worth much yet , please help me out. Bought my first house last month and I can't seem to make any other smart investment.
Even with my less knowledge in the stock market , I have been blessed with his strategies
{That's true I know Barymoer. I met him at a conference in New York in 2022 where he introduced us to his business strategy, he helped me cover my student loans with ease and so many more to be mentioned
I've been using 100% federal treasury money markets like FDLXX to also avoid state income tax on the interest. I'm at 5.3% marginal in WI, so at current ~5% rates that's an extra 0.25% I get to keep after taxes vs SPAXX or similar.
VUSXX for those on Vanguard to eliminate state income tax on the interest like they said ^^, same thing as FDLXX just with Vanguard instead of Fidelity. Like said above, if you're in a state with high income tax (CA, NY, etc etc) you may want to look into these.
I just switched to FDLXX, SPAXX was 49% Treasury last year. Maryland is 7.75% state and local.
This video came at a perfect time! I was looking into what to do with my MMF if interest rates drop. Thank you!
Another great informative episode! I thought a money market account was a money market account until I looked into the yield that the MM mutual funds were paying vs. the MM account at my credit union. Also, I too advantage of an incentive offer for a high yield savings account that offered a cash bonus of x if you deposited a minimum of y and kept it deposited for 3 months. Also, it is important to mention that the "cash" in your HSA is probably in a money market account. It is a good idea to keep enough in the mm to pay for the deductible / yearly max out of pocket amount that your health care insurance plan specifies. Love this show.
I use multiple CD’s for my emergency fund cash but stagger the start/renewal date so I theoretically have them available every three months.
Would love to see a video on holding 'cash' in tax advantaged investments (tbills/federal/state/municipal bonds)!
Sooo EXCITED to hear about Cash Maximization!
Nicest finance bros on RUclips 😌💙
I had about $100k locked into a CD paying about half a percent when interest was still low. When it started going up to about 4% I decided that rather and wait the six or seven months left for it to mature I’d withdraw it early, take a three months worth of interest penalty and then reinvest at the much higher rate.
The amount I lost was peanuts compared to what I gained. I wouldn’t do this if the differences were small but it was a material amount of money left on the table if I just let my account linger in those obsolete interest rates.
You gentlemen are great. Appreciate the content!
I'm almost 60 and in addition to my 401 and Roth I keep cash in c.d ladder and HYSA.
Thanks for going thru this
Thank you for this episode. I find it hard where to put my cash I want to keep safe and sound.
Man that Bo. So excited.
Amazing ladder figure! Very intuitive!
My HYSA is 5% and Fidelity money market highest is 5.04%. I’m good leaving my money in HYSA.
Who do you use?
@@MKK-wg7fz Wealthfront
For how long? That’s all ending very soon …next plan
@@WeBeatMedicare6969 5% has been 4/5 months
Wealthfront is 4.5% r now
It's like you guys are reading my mind about what I need to hear...
Ive been doing 26 week t bills this last 2 years. Been very good.
Yep. I use them for annual recurring expenses and next year's Roth IRA contribution instead of leaving the money in a 0.1% brick and mortar credit union. What I do is if I buy an 13 week for $100 and the investment/withdrawal is $98 then I put the $2 difference into an online money market account as if they took out $100. The $2 then earns interest at a slightly lower interest rate. It's really a saving hack, but it's a small bump in the yield. Even after taxes it helps provide a discount for those short term expenses.
I've called some companies I pay and asked if they offer a payment discount for prepayment in advance and the discounts offered is half of what I'm earning now.
our time may be ending, I'm afraid.
surprised how fast they dropped to 4%...
I use thr vanguard settlement fund as my emergency fund.. currently giving 3.6%
Talk about CDs, but no mention regarding callable vs. non-callable CDs? I would think that's some important info.
A missed opportunity to discuss taxable vs tax free money market funds. This is something a lot of high earners would value.
Thank you so much for this comment. I didn’t know about these & now I’m researching VMSXX.
Another pitfall is cash sitting in a sweep account at your brokerage
I use cds for one of my emergency funds. It’s specifically for the type of emergency where we (myself, my wife, or god forbid, both)lose our incomes. It’s a monthly ladder of 1yr cds, with amounts based on expected expenses after lifestyle adjustments. I like how it is self regulating. If we just had a pool of money available, we may be less likely to adjust and budget appropriately. This way, we know how much we will get per month and be forced to budget against it.
Meanwhile, we have another emergency fund for unplanned large expenses
Congratulations Brian you made on the valuetainment show I watch both of you guys religiously.
And you deserve all the hard work and success. I always thought in mind eventually there will be a lot of people who want to see your work
A couple HYSAs at giant banks that are paying the highest rates are BMO Alto and Jenius Bank.
Reward checking accounts usually have higher rates. You have to jump through some hoops. But those hoops aren’t very hard.
Hey money guys. First, thank you so much for all you do! You’ve blessed my life.
Question: I have a hard time differentiating between having extra cash on hand to take advantage of opportunities and timing the market. One you praise and the other you condemn. When is holding more cash than you need in hopes of a great opportunity timing the market and when is it Warren Buffet level brilliance?
I think of the comparison you did of the worst market timer, the best, and the dollar cost averager. Waiting for a fire sale seems like trying to be the best timer rather than the dollar cost averager.
Not sure if I understand completely but, keeping money in savings is fine, it just need to have a purpose. For example you could have two types of Savings:
1.) Emergency fund
2.) large purchase fund (car,house,wedding,buying dips)
You can DCA as normal and then when there is a 20% dip or more u could pull from your large purchase fund to buy some stocks. It’s lowkey just for feel good gains & easy money. if u DCA without ever buying huge amounts during dips you still will be fine due to all the time in the market u have.
So It’s fine to have money “sit” as long as you know what the money is sitting for. When you have money sitting with no real purpose then it’s problem cus then ur money isn’t working for u.
Hopefully I explained what u were asking bro 🤙
There used to be a HYSA that formally had its APR indexed to the 1-month T-bill. It's an interesting hybrid/compromise.
I don’t have sense enough to follow this, I would love to be in this state of mind. I’m listening though
HYSA is not tax advantaged right?
Right
I am suscribed....thank you for your channel.
I use a series of 6, rolling/laddered 6-month CDs as my emergency account. If an emergency came up, I always have one month of expenses at the ready, and have a month to unlock the next if needed. This was designed more to account for the event of a layoff, but it doesn’t work great for emergencies that require a lot of cash up front. I do have a large slush fund in a money market to account for that edge case, though. Would you still advise against using CDs for an emergency fund considering this approach?
Good video
Can you lose money on a money market fund account through a brokerage? Or do you just lose the potential gains, when the % changes?
Bo gets me excited
I suggest doing bank bonuses from checking accounts and brokerage accounts where you can EASILY get 10%-20% on these deals as a “new customer”
Eventually you hit a point where you can't keep getting good value
"But as soon as the Feds started raising rates, everything went up..."
Does anyone know anything about cash value life insurance plans and their legitimacy? A financial advisor was saying they have a constant 4% return that's unaffected by the market and is tax free
Interesting take on cash management, but I still think putting all your money in high-yield savings accounts is risky. What about inflation? 🤔
We are far from “all your money”- this is how to maximize your emergency reserves (Steps 1 & 4 of FOO) 👍
What exactly happens to your money if the unfortunate “break the buck” scenario happens in money market mutual funds? If you have 50k sitting there, what realistically do you lose and is it permanent?
This happened with at least one fund during the 2008 financial crisis. IIRC, the Fed instituted a temporary emergency policy which effectively gave FDIC insurance for money market mutual funds.
@@voodootroisyes I heard about that but it’s unclear to me what essentially happens to the account values & if they temporarily dip then bounce back etc. or is there a permanent loss.
@@MKK-wg7fz It seems that when a money market fund officially breaks the buck, the fund gets liquidated, and the shareholders are given the resulting $0.## of cash per share.
Why not VMFXX after your emergency fund instead of BND which was not doing well?
Every week I buy more of whatever is the lowest percentage of my portfolio and try to keep everything around 10%. Please what could be my safest buys with $400k to outperform the market in 2024?
I'd avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows sign of recovery.
This is why I entrusted a fiduciary with my investmnt decisions. Many underestimate advisors until emotions lead to losses. My advisor crafted a tailored strategy aligning with my long-term goals, guiding entry and exit points for the equities I focus on. This has grown my portfolio to over $850k. My personal best so far
Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Hi! Sharing a word of caution to consider as you search for a financial advisor, feel free to take the advise if it’s helpful, if not feel free to disregard🙏
Always make sure you look for a fiduciary (a financial advisor that is legally obligated to make financial decisions in YOUR best interest) and not a general financial advisor (because they will always make investment decisions in THEIR best interest) to make as much in fees as possible. There are horror stories of people who hire financial advisors that manage your portfolio in a way that they get paid out in huge fees and you get terrible returns, just google it. Also look out for financial advisors who charge an Assets Under Management (AUM) fee which can range from 0.5-2% of your portfolio value. For instance, a portfolio worth $1M with a 1% AUM means you’ll be paying $10,000 per year in just AUM fees.
Let me answer your question... It Depends!
these are "my people"
Ive got a savings account. its called borrowing from my brokerage account
Couple things as they are more concerned about timeless content than actually helping anyone: the savings account free withdrawal limit will almost certainly be 6 per statement cycle (2024) federal regulations and all. Think they skipped over Money Marked (the bank account) will also likely be subject to that same 6 free withdrawals per cycle (again currently 2024), not really supposed to be your main checking account
Why does Bo end up talking the most for almost every video?
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
She's always active on Whats~App...
+180
Holding cash as step 8 sounds like timing the market
: )
Im not a seat renter
Step 1: don't give away 1%+ to unnecessary FA's
FA are good if you have a lot of money
@@BBAERSTANCE1 % based fees are a complete scam, just like reatlors
Or CPAs for that matter. Just do them yourself!
@@Waltuh22232 I'm in corporate accounting. I agree with you.
@@Waltuh22232 I can tell you that if you had my tax situation, you would not be able to do it yourself
By the way your aren't a good case study for keeping a cash emergency reserve because you didn't have one, we went through a cycle, and absolutely nothing bad happened to you because of it. If anything you are a case study for how emergency reserves aren't necessary.
Surprised that whole life insurance didn't come up here at all!
Because it's trash
@@Blittsplitt5 is it? I have never seen it compared to cash accounts.
@@Blittsplitt5 I've only ever seen it compared to investments, not cash accounts. Is it still trash with that comparison, all things considered?
It's a weak investment and expensive insurance, so a failure on both counts. In the _best_ case scenario, they invest your money on your behalf and only return a portion of the total return. That's how they make money.
@@vulpixelful wait but you just said "investment". Cash accounts are not "investments" so I get the sense you're not really comparing to cash accounts.