A weekly thread to discuss financial matters - from personal all the way up to global.
Ground Rules
- Remember that we're all just Internet randos. Don't bet your life savings on a hot tip from this thread.
- Keep culture war in the culture war thread. Yes, global events may impact our personal finances, but that does not mean we have to incessantly harp on culture war aspects here. If you are going to discuss it, please stick to the practical impacts of it on an individual level.
- Be kind. Remember that everyone here comes from different circumstances. We all have different resources available and different risk tolerances.
- Don't let the perfect be the enemy of the good. Better is better. Celebrate people when they take a step up and work to move their finances in the right direction. Don't flame out because they haven't followed what you consider the optimal path. Everybody has to start somewhere.
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Notes -
Once you have enough wealth and some discipline you don’t need an emergency fund. You can use a taxable brokerage and margin for same day payments. Fidelity even has a debit card that automates it. Or slower you can transfer to you bank account and it clears within 24 hours for payment.
If you have 300k in taxable brokerage you should have no problem getting 30k for an emergency and that’s without needing to do a taxable event immediately.
Reading this finally jolted loose a thing in the back of my brain. Almost a year ago now, I stashed this link with a note that I should look into the scheme at some point. Scroll down to the section titled "Box spreads".
...now having spent a few minutes looking at it again, a couple comments. a) If you don't do it right, you can really screw yourself over. There's a legend of wallstreetbets who did this, of course. b) There's now a FinTech company that specializes in doing this for you. An LLM tells me that they get paid by adding an extra ~0.5% to your rate, which is probably worth it if you don't feel like you really know what you're doing. c) I have no idea how long it would take to execute. From what I can guess from what I've read so far, they use a browser extension (a little sketch) to actually put the trade together in your existing brokerage account, so presumably, the actual execution of it all is extremely quick. But it looks like you probably need to do some setup in advance.
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