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Contrarian View

August 14th, 2007 at 07:21 am

http://online.wsj.com/article/SB118687812752495256.html

Kind of an interesting article.

I see the point.

Can you have too big an efund? Hell yeah. I guess I have seen the other side on that one too. You can have too much.

Savings is savings, that is what is important.

I have to have the caveat that I really don't think you can save too much. Well, you probably can, but rather unlikely. LOL. But you can have way too much in liquid funds not working for you (especially when interest rates are like 2%). Been there, done that.

I laugh at the idea of being a risk taker because I am trying to maximize my returns and rather max out my IRAs than keep 6 or 12 months liquid cash in my e-fund. I guess that is the ironic thing because I am SO not a risk taker. But the odds I would ever need that 6 months cash? Pretty slim. So I am going to max out my IRAs, and if that slim chance comes, at least my butt is covered. It's savings, I can use it, the world would not end.

The odds are I'll come out ahead. That's what is important. IT's an odds game.

So I read his article with interest. He has a point.

2 Responses to “Contrarian View”

  1. Stein Says:

    The only thing I would say about the article is why must it be one or the other? Isn't having a retirement account AND some money available for emergencies the better option?

  2. monkeymama Says:

    Well I think the point is when you have limited resources, or when you are just starting out. I think it's valid to realize you can build your efund much more slowly as retirement maybe should take some precedence (but can double as an efund). With time you save your raises and it shouldn't be much of an issue!

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