Comments on: Where To Park Car Savings? http://frugaldad.com/2009/08/17/where-to-park-car-savings/ Tips for living frugal while still having a life Wed, 17 Mar 2010 22:16:43 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: DDFD at DivorcedDadFrugalDad.com http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30997 DDFD at DivorcedDadFrugalDad.com Tue, 01 Sep 2009 12:14:40 +0000 http://frugaldad.com/?p=3465#comment-30997 I am with you-- the car will "sh*t the bed" the very next day after he locks into the CDs. Maintain liquidity. I am with you– the car will “sh*t the bed” the very next day after he locks into the CDs. Maintain liquidity.

]]> By: unimax http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30364 unimax Sun, 23 Aug 2009 17:50:46 +0000 http://frugaldad.com/?p=3465#comment-30364 If he does not want to get into stocks, he should definitely look at www.smartypig.com If he does not want to get into stocks, he should definitely look at http://www.smartypig.com

]]> By: MITBeta @ Don't Feed the Alligators http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30235 MITBeta @ Don't Feed the Alligators Thu, 20 Aug 2009 16:26:51 +0000 http://frugaldad.com/?p=3465#comment-30235 I am about to be faced with this same dilemma and plan to stash my "new car fund" in a Vanguard Lifestrategy Fund, either the 3-5 year Income fund (VASIX) or the greater than 5 year Conservative Growth fund (VSCGX). I may also consider a tax exempt municipal bond fund, such as the VMATX which has been paying over 4% tax free for more than 10 years. I am about to be faced with this same dilemma and plan to stash my “new car fund” in a Vanguard Lifestrategy Fund, either the 3-5 year Income fund (VASIX) or the greater than 5 year Conservative Growth fund (VSCGX).

I may also consider a tax exempt municipal bond fund, such as the VMATX which has been paying over 4% tax free for more than 10 years.

]]> By: JerryB http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30103 JerryB Tue, 18 Aug 2009 15:01:53 +0000 http://frugaldad.com/?p=3465#comment-30103 I don't see the point of having a dedicated "Car replacement" fund. A sub-account at ING may work for a short term goal like vacation or even an emergency fund, but I think the money for a long term goal (5-7 years) like a new car should go into the highest paying investment you're willing to risk. Having an account that says "New Car Fund" would entice too many to buy a new car when the funds reach a high enough level, whether they need the new car or not. I don’t see the point of having a dedicated “Car replacement” fund. A sub-account at ING may work for a short term goal like vacation or even an emergency fund, but I think the money for a long term goal (5-7 years) like a new car should go into the highest paying investment you’re willing to risk. Having an account that says “New Car Fund” would entice too many to buy a new car when the funds reach a high enough level, whether they need the new car or not.

]]> By: Chloe (Naturally Frugal) http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30059 Chloe (Naturally Frugal) Tue, 18 Aug 2009 03:18:55 +0000 http://frugaldad.com/?p=3465#comment-30059 This is a great question because I don't know what to do with my savings either. I'm thinking about putting some into CD's and laddering them, but also having emergency cash handy as well. That's what I would do, but I haven't yet so we'll see if it actually works! This is a great question because I don’t know what to do with my savings either. I’m thinking about putting some into CD’s and laddering them, but also having emergency cash handy as well. That’s what I would do, but I haven’t yet so we’ll see if it actually works!

]]> By: Sylvia http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30056 Sylvia Tue, 18 Aug 2009 01:22:06 +0000 http://frugaldad.com/?p=3465#comment-30056 I'd recommend keeping the savings as liquid as possible as well. We did pretty much the same thing --after we finished paying for our car loan, we kept making payments to ourselves and put the money in an ING account. We were hoping our old car would last for at least two more years before we had to purchase another, but when we were one year into our savings plan, my husband's car was totaled in an accident. It was nice to be able to purchase a new car when we needed it instead of worrying about penalties or market timing. I’d recommend keeping the savings as liquid as possible as well. We did pretty much the same thing –after we finished paying for our car loan, we kept making payments to ourselves and put the money in an ING account. We were hoping our old car would last for at least two more years before we had to purchase another, but when we were one year into our savings plan, my husband’s car was totaled in an accident. It was nice to be able to purchase a new car when we needed it instead of worrying about penalties or market timing.

]]> By: SingleGuyMoney http://frugaldad.com/2009/08/17/where-to-park-car-savings/comment-page-1/#comment-30054 SingleGuyMoney Mon, 17 Aug 2009 22:45:44 +0000 http://frugaldad.com/?p=3465#comment-30054 I keep the bulk of my cash in a high yield rewards checking account that is currently paying 4%. I keep the bulk of my cash in a high yield rewards checking account that is currently paying 4%.

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