Comments on: The Doomsday Fund: How Planning for the Worst Prepares You for the Best http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/ Money Management and Personal Finance | The Dough Roller Sat, 21 Nov 2009 01:10:27 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Warning: Your HELOC may evaporate when you need it - Smart Spending http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-7460 Warning: Your HELOC may evaporate when you need it - Smart Spending Wed, 28 May 2008 13:09:41 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-7460 [...] If you're interested in my approach to an emergency fund, check out "The Doomsday Fund: How planning for the worst prepares you for the best." [...] [...] If you’re interested in my approach to an emergency fund, check out “The Doomsday Fund: How planning for the worst prepares you for the best.” [...]

]]> By: Warning: Your home equity line of credit may evaporate in an emergency - The Dough Roller http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-7136 Warning: Your home equity line of credit may evaporate in an emergency - The Dough Roller Wed, 23 Apr 2008 09:28:13 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-7136 [...] the necessities? And if you’re interested in my approach to an emergency fund, check out The Doomsday Fund: How Planning for the Worst Prepares You for the Best. Share and Enjoy: These icons link to social bookmarking sites where readers can share and [...] [...] the necessities? And if you’re interested in my approach to an emergency fund, check out The Doomsday Fund: How Planning for the Worst Prepares You for the Best. Share and Enjoy: These icons link to social bookmarking sites where readers can share and [...]

]]> By: What a 9-day hospital stay taught me about health insurance http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-6406 What a 9-day hospital stay taught me about health insurance Mon, 25 Feb 2008 12:36:54 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-6406 [...] the first two weeks of 2008, we spent $3,000. At this point I’ll refer you to my article on emergency funds. Our insurance does have a cap on how much we have to spend out of pocket, but it’s $4,000, [...] [...] the first two weeks of 2008, we spent $3,000. At this point I’ll refer you to my article on emergency funds. Our insurance does have a cap on how much we have to spend out of pocket, but it’s $4,000, [...]

]]> By: Tim http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3319 Tim Sun, 02 Dec 2007 18:50:29 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3319 DR, basically yes; however, there are some retirement vehicles you can withdraw without penalty, contributions to your roth, although the penalty is that you can not replenish and you then forgo any more future earnings on the lost contributions. other things like taking a loan against 401k's etc. Some thought has to go into what your triage list looks, and it should be done before an emergency because during an emergency you probably aren't going to be thinking too straight. DR, basically yes; however, there are some retirement vehicles you can withdraw without penalty, contributions to your roth, although the penalty is that you can not replenish and you then forgo any more future earnings on the lost contributions. other things like taking a loan against 401k’s etc. Some thought has to go into what your triage list looks, and it should be done before an emergency because during an emergency you probably aren’t going to be thinking too straight.

]]> By: DR http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3195 DR Thu, 29 Nov 2007 10:30:44 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3195 Tim, ranking the investments from least to highest penalties is an interesting concept. I gather the list would look something like this: (1) Non-retirement investments that would trigger a capital loss; (2) non-retirement investments that would trigger a capital gain (from least to highest); (3) retirement investments. In my planning, I subtract the taxes and penalties I'd pay and use what's left in calculating my safety net. Tim, ranking the investments from least to highest penalties is an interesting concept. I gather the list would look something like this: (1) Non-retirement investments that would trigger a capital loss; (2) non-retirement investments that would trigger a capital gain (from least to highest); (3) retirement investments. In my planning, I subtract the taxes and penalties I’d pay and use what’s left in calculating my safety net.

]]> By: Tim http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3189 Tim Thu, 29 Nov 2007 07:06:56 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3189 This doesn't sound like a "doomsday fund" more than a disaster plan. The concept is good though. Just like having a power of attorney and a will, disaster planning is necessary. This should also include a triage list of investments that you might have to liquidate in order to finance a disaster, which you have omitted in your list (except selling the house or cars). Realistically, the monthly savings gained from cutting down the monthly expenses on your list, would probably not cover a true doomsday scenario; moreover, your emergency fund should already be covering those monthly expenses. i see an emergency fund or doomsday fund as covering income disruption plus being able to cover major emergencies (1xmedical, 1xhousing) simultaneously. If the scenario required more than what i had funded, then I have a rank ordered list of investments I could liquidate--that is, rank ordered in terms of least to highest penalties. This doesn’t sound like a “doomsday fund” more than a disaster plan. The concept is good though. Just like having a power of attorney and a will, disaster planning is necessary. This should also include a triage list of investments that you might have to liquidate in order to finance a disaster, which you have omitted in your list (except selling the house or cars). Realistically, the monthly savings gained from cutting down the monthly expenses on your list, would probably not cover a true doomsday scenario; moreover, your emergency fund should already be covering those monthly expenses.

i see an emergency fund or doomsday fund as covering income disruption plus being able to cover major emergencies (1xmedical, 1xhousing) simultaneously. If the scenario required more than what i had funded, then I have a rank ordered list of investments I could liquidate–that is, rank ordered in terms of least to highest penalties.

]]> By: Toby http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3166 Toby Wed, 28 Nov 2007 18:43:38 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3166 As the saying goes, "The cheapest car is the one you already own." Perhaps selling only one of the cars would be a better idea. Trading in a reliable late-model car for an older car with unknown past and future reliability seems like a big gamble to take during such a desperate financial time. Better to take the sure bet at a time like that. Case-in-point, my BIL who's not bothered looking for a new job for the past six weeks because "my car's not running right now so if I found a job I'd have no way to get there..." What he's been doing for the last six weeks besides "not repairing the car" I have no idea. As the saying goes, “The cheapest car is the one you already own.” Perhaps selling only one of the cars would be a better idea. Trading in a reliable late-model car for an older car with unknown past and future reliability seems like a big gamble to take during such a desperate financial time. Better to take the sure bet at a time like that.

Case-in-point, my BIL who’s not bothered looking for a new job for the past six weeks because “my car’s not running right now so if I found a job I’d have no way to get there…” What he’s been doing for the last six weeks besides “not repairing the car” I have no idea.

]]> By: How to develop the habit of spending less than you make - Smart Spending http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3162 How to develop the habit of spending less than you make - Smart Spending Wed, 28 Nov 2007 17:01:29 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3162 [...] easy. To really distinguish between wants and needs, take a look at an article I wrote called "The Doomsday Fund: How planning for the worst prepares you for the best." Imagining what you'd do in a real, sustained financial crisis will help sort out the needs from [...] [...] easy. To really distinguish between wants and needs, take a look at an article I wrote called “The Doomsday Fund: How planning for the worst prepares you for the best.” Imagining what you’d do in a real, sustained financial crisis will help sort out the needs from [...]

]]> By: DR http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3143 DR Wed, 28 Nov 2007 11:26:33 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3143 Debbie & Craig, biking is a great idea, and I wish I could do the same thing. Unfortunately, being a contestant on The Running Man would be safer than biking to work where I live. Debbie & Craig, biking is a great idea, and I wish I could do the same thing. Unfortunately, being a contestant on The Running Man would be safer than biking to work where I live.

]]> By: Craig http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3141 Craig Wed, 28 Nov 2007 10:57:20 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3141 I started biking to work and school instead of taking the train. It saves me darn close to 15 dollars a week, and I gain the time that I would have spent exercising after I got home. I started biking to work and school instead of taking the train. It saves me darn close to 15 dollars a week, and I gain the time that I would have spent exercising after I got home.

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