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Ask HN: How do you protect your emergency fund from inflation?
11–20 of 59 posts
Re: Ask HN: How do you protect your emergency fund from inflation?
#12Diversify. Buy some crypto. Some Swiss francs. Emergency food stash. Get some cash. Diversification is protection.
How about a fallout shelter ?
Re: Ask HN: How do you protect your emergency fund from inflation?
#13Right now the two alternatives are PHYSICAL gold(massively undervalued) and BTC. ECB won't really increase interest rates as the last time they did it (11 years ago) half of Southern Eurozone almost went bankrupt. Out of the stock market - probably energy and defense stocks. Also food production and commodities. To be honest I am seriously considering a move to say South America. Even if we don't end up in a hot war,…
> To be honest I am seriously considering a move to say South America. Even if we don't end up in a hot war, the persepectives for freedom in Europe are very bleak.
Good example of cheap talk / revealed preferences. Don't bother with this comment until you have actually moved.
Re: Ask HN: How do you protect your emergency fund from inflation?
#14Don't over think it. It's an emergency fund, just top it up out of income or divert money that otherwise would've gone to investments to it.
Re: Ask HN: How do you protect your emergency fund from inflation?
#15Right now the two alternatives are PHYSICAL gold(massively undervalued) and BTC. ECB won't really increase interest rates as the last time they did it (11 years ago) half of Southern Eurozone almost went bankrupt. Out of the stock market - probably energy and defense stocks. Also food production and commodities. To be honest I am seriously considering a move to say South America. Even if we don't end up in a hot war,…
Gold and BTC are not suitable for emergency funds: liquidty, low volatilty and easy access is what you are looking for.
Re: Ask HN: How do you protect your emergency fund from inflation?
#16Best spot for actual emergency fund if you have a mortgage is in said mortgage redraw account. Most mortgages these days have free online redraw so it offsets the interest you are paying while being completely safe with zero risk and only your local currency volatility.
Re: Ask HN: How do you protect your emergency fund from inflation?
#17It probably depends greatly on your personal circumstances but if you are already investing, or have a Home Equity Line of Credit available, or good credit so that you can get credit cards, then it's quite possible that an emergency fund is just not required (or in other words you keep your emergency fund invested) https://earlyretirementnow.com/2021/05/26/the-emergency-fund... I think younger folk or those in a less…
Stocks don't make sense for emergency funds. They go up and down. Emergency funds have to be available 24/7 and you cannot wait until it goes up again.
EDIT: I should also add that depending on your region (especially in Europe) there can be serious tax implications if you take it out all at once.
Re: Ask HN: How do you protect your emergency fund from inflation?
#18Right now the two alternatives are PHYSICAL gold(massively undervalued) and BTC. ECB won't really increase interest rates as the last time they did it (11 years ago) half of Southern Eurozone almost went bankrupt. Out of the stock market - probably energy and defense stocks. Also food production and commodities. To be honest I am seriously considering a move to say South America. Even if we don't end up in a hot war,…
> To be honest I am seriously considering a move to say South America. Even if we don't end up in a hot war, the persepectives for freedom in Europe are very bleak. Good example of cheap talk / revealed preferences. Don't bother with this comment until you have actually moved.
Could you provide some arguments instead of derogatory qualifiers? Also, how do I report posts that go against the rules?
Re: Ask HN: How do you protect your emergency fund from inflation?
#19Best spot for actual emergency fund if you have a mortgage is in said mortgage redraw account. Most mortgages these days have free online redraw so it offsets the interest you are paying while being completely safe with zero risk and only your local currency volatility.
Check your loan conditions, your bank may have rights to money in excess of scheduled payments. Unless your talking about a specific offset account as opposed to the actual loan account.
Not a CPA but got told this advice with regard to larger savings. If the bank has trouble it can snatch up your redraw. YMMV
Re: Ask HN: How do you protect your emergency fund from inflation?
#20Right now the two alternatives are PHYSICAL gold(massively undervalued) and BTC. ECB won't really increase interest rates as the last time they did it (11 years ago) half of Southern Eurozone almost went bankrupt. Out of the stock market - probably energy and defense stocks. Also food production and commodities. To be honest I am seriously considering a move to say South America. Even if we don't end up in a hot war,…
Gold and BTC are not suitable for emergency funds: liquidty, low volatilty and easy access is what you are looking for.
In a highly inflationary environment, low volatility simply means you get burned. OP is asking how to avoid exactly this.