souldoubt
Senior Member
Joined: Jan 4, 2011 11:57:14 GMT -5
Posts: 2,745
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Post by souldoubt on Mar 25, 2011 10:10:13 GMT -5
To me short term for something like grad school, a home purchase, etc can mean more than a year considering how much you're talking about saving up. That said I agree that it all comes down to the OP's risk tolerance and what he is comfortable with.
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brdsl
Familiar Member
Joined: Dec 28, 2010 11:56:10 GMT -5
Posts: 863
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Post by brdsl on Mar 25, 2011 12:41:05 GMT -5
"This is comparing apples to oranges. To get the dividends, you accept the risk that you could lose part (or all) of the principle. To get safety and liquidity, you accept the lower interest rate."
I don't think anyone is arguing risk = reward.
It is simply whether or not you want your money to grow, or stagnate.
I would go for the dividends. I have been getting around 6%, plus small growth on price in a few utilities.
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Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
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Post by Gardening Grandma on Mar 25, 2011 12:47:29 GMT -5
"This is comparing apples to oranges. To get the dividends, you accept the risk that you could lose part (or all) of the principle. To get safety and liquidity, you accept the lower interest rate." I don't think anyone is arguing risk = reward. It is simply whether or not you want your money to grow, or stagnate. I would go for the dividends. I have been getting around 6%, plus small growth on price in a few utilities. Well the OP is asking for recommendations for their EF that is "safe". I take that to mean that safety has priority. And for any EF, I'd put safety over returns.
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2kids10horses
Senior Member
Joined: Dec 20, 2010 20:15:09 GMT -5
Posts: 2,759
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Post by 2kids10horses on Mar 25, 2011 13:08:56 GMT -5
No, the OP said he has $80,000 cash which includes his EF. He didn't say he had an $80K EF.
He was asking where he could get a better return. He did mention "safe" but anyone (with any common sense) knows that to get a higher return you have to accept some degree of higher risk.
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