#28: What is a good account for an emergency fund besides a savings account?

Episode 28: What is a good account for an emergency fund besides a savings account?

Today, join Josh and Garrett as they discuss emergency funds and where to put emergency fund money other than savings accounts!

3 key takeaways:

• Savings accounts are FINE but it’s easy to transfer money back out, so sometimes it’s easier to set up some barriers to easy transfers.
• The purpose of an emergency fund is NOT to get a return on it!
• Options for where clients should put their emergency funds:
  • High Yield Savings Account (consider accessibility)
  • CDs (consider liquidity)
  • Cash (consider scale)
  • Whole Life Insurance/Universal Life Insurance (IF the prerequisites make sense; also be careful because licensing is required to discuss)
  • TIPS - Treasury Inflation-Protected Securities (more esoteric: i-bonds or e-bonds)
  • Roth IRA (be careful because licensing is required to discuss; you cannot legally tell a client to sell things from their IRA)

Resources mentioned in this episode:

• Is Financial Coaching Breaking the Law?
• What to Look For in a Financial Adviser?

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