Got Financial Cushion?

killbilly said:
Reason being is that if you take money out of an IRA before you're 59.5 years of age, you not only take the federal income tax hit, but you also pay a 10% penalty on that money, too. And you lose out on YEARS of compounding growth.
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Only regular, tax deferred IRA's have that penalty. Roth IRA's do not, as long as you take out the money you put in yourself (no gains).

You do lose years of potential growth, but if you didn't put it in the Roth IRA to begin with you'd never be able to get that growth. So you're not losing anything really, IMO. Just keep the money in your core money market account. I agree with not buying any stocks/funds with it until you do have a "true" emergency fund in a savings account. I would suck if you job and the economy tanked at once.
 
I used to work for Ford and recently took a lump sum buyout offer. I did alot of researching as to where I should put my money. I dumped it all into an online savings account from wilmington trust. I think the website is wtddirect.com. It is paying 5.26% currently. I think you have to have a min of 10k to get that rate...I get about $10.00 daily just from interest.
 
captnem said:
I used to work for Ford and recently took a lump sum buyout offer. I did alot of researching as to where I should put my money. I dumped it all into an online savings account from wilmington trust. I think the website is wtddirect.com. It is paying 5.26% currently. I think you have to have a min of 10k to get that rate...I get about $10.00 daily just from interest.
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Paypal's Money Market and HSBC and some others have that sort of rate with a minimum balance of $1. HSBC gave a promotional 6% for all new money added in April.
 
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