Monday, February 25, 2008

I'm ceramic and cast iron

A few weeks ago Mighty Bargain Hunter asked "How strong is your piggy bank?" Essentially how easy is it to get access to your money quickly. He gives 6 options on how to rate your savings ranging from Papier-mache to Titanium-reinforced Kevlar.

Currently I fall into:

  • Ceramic piggy bank: An “unlinked” savings account, or an online account without check-writing.
  • Cast iron piggy-bank: Tax-advantaged accounts like IRAs, 401(k)s, or college plans.
I’m working on:
  • Aluminum piggy bank: A certificate of deposit.

Ideally it seems like a mix of the last five would be the best. Money in different types of accounts, some accessible when you need it and some behind Kevlar until the golden days.

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