where do you stash it?

[xactly]

howdy team

there has been much talk of cash, plan B's and unexpected (and now expected) margin calls as well as the usual property maintenence issues. Where do you stash your cash for this? do you have a rule of thumb for SANF?

do you off set it and why? do you go down the riskier" i buy blue chips i can later sell" path with it? (they may be blue chips but they can still fall... ) or is it all 'potential' money from revals?

I currently have mine in a high interest bearing account because my IPs were interest only and with a high tax threshold, no piont in offset.

that will change soon with a P&I loan but Im going to have to separate "emergency Investment money" and "emergency personal money" or the tax calcs will be a disaster.

I have roughly 10K per property. ..slowly saved up just sitting in a high interest account, not sure its the most effective use of it (except for getting a kick out of the numbers! personal wealth is still a thrill for me, we didnt have much growing up). shares are 100% owned but no ideas about allowing for margin calls.....and now is not the time to swim in that pool...


where do you stash it?

 

[Humphrey]

where do you stash it?

Cash is good now. Spread across several institutions if you require additional peace of mind. Sit on hands. Wait for opportunities to appear.

 

[sash]

Sash....says stash...it in different institutions and shares. Rhymes doesn't it?

Cheers
Sash

 

[ianvestor]

where do you stash it?

The big money is in an offset account, the medium-sized money is in wife's term deposits (maybe so she can get a kick out of the numbers) and the small money is in a currency trading account which pays the RBA cash rate even when funds are idle (no open trades).

Oh, and the very small money is in a jar that I keep in my wardrobe

 

[BayView]

Every spare cent we get goes straight back into our investment debt (don't have any consumer debt).

This increases equity, cashflow, strengthens your overall financial position, and the applied return of the savings on tax versus the interest you might get from a Bank deposit (after the tax on that interest is paid) is pretty good.

 

[Gools]

Straight onto the PPOR. Wish I had it payed off so I could have the same problem as you Xactly....

Gools

 

[GreatPig]

In a mixture of online savings accounts and short-term term deposits with major banks at the moment. Despite the deposit guarantee, it's still spread across a few banks.

A couple of those online accounts are the funding accounts for online share brokers, but I don't hold any shares right now.

GP

 

[VYBerlinaV8]

I keep a substantial wad of cash in our PPOR offset account, which can be quickly moved to whereever it's needed.