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 Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: I Just-Got-Laid-Off Survival Kit (including how to find $100k+ job opportunities) http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-41436 I Just-Got-Laid-Off Survival Kit (including how to find $100k+ job opportunities) Wed, 24 Aug 2011 14:37:15 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-41436 [...] handle a financial crisis should one come your way. I’ll be writing in more detail about a Doomsday Fund shortly, and will add a link back here. But the point is, plan now for what steps you would take to [...] [...] handle a financial crisis should one come your way. I’ll be writing in more detail about a Doomsday Fund shortly, and will add a link back here. But the point is, plan now for what steps you would take to [...]

]]> By: Steve Libonati http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-27358 Steve Libonati Mon, 03 Jan 2011 00:36:52 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-27358 Same deal in NC. You pay personal property taxes on your vehicle(s). In the case of NC, you pay the county you live in. For me, Mecklenburg County. Same deal in NC. You pay personal property taxes on your vehicle(s). In the case of NC, you pay the county you live in. For me, Mecklenburg County.

]]> 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: 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.

]]> By: Debbie http://www.doughroller.net/personal-finance/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/comment-page-1/#comment-3132 Debbie Wed, 28 Nov 2007 08:14:21 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-3132 My daily transportation is my bike. I take my daughter to school, I do my marketing, everything via bike. We own a tv but no tv connection... we only watch dvds and hence don't have to deal with the buying signals from incessant marketing. We have a generous 6 month emergency fund and have a house rule that whenever a chunk of money comes our way we automatically save at least half. It means waiting a long time to finish some of our projects, or putting off buying a few things, but I love sleeping well at night. My goal is to have a generous 12 month emergency fund, and then pay down our mortgage faster. I would LOVE to make our 30 year a 15 year mortgage. We have no debt at all except for our that and I would love to own my sweet home free and clear by the time I'm fifty. My daily transportation is my bike. I take my daughter to school, I do my marketing, everything via bike. We own a tv but no tv connection… we only watch dvds and hence don’t have to deal with the buying signals from incessant marketing. We have a generous 6 month emergency fund and have a house rule that whenever a chunk of money comes our way we automatically save at least half. It means waiting a long time to finish some of our projects, or putting off buying a few things, but I love sleeping well at night. My goal is to have a generous 12 month emergency fund, and then pay down our mortgage faster. I would LOVE to make our 30 year a 15 year mortgage. We have no debt at all except for our that and I would love to own my sweet home free and clear by the time I’m fifty.

]]> 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-1465 DR Sun, 28 Oct 2007 10:44:57 +0000 http://www.doughroller.net/2007/10/24/the-doomsday-fund-how-planning-for-the-worst-prepares-you-for-the-best/#comment-1465 That is true; the personal property taxes are deductible on our federal tax returns. I've never heard of taxes based on the weight of the car. Aren't politicians creative! That is true; the personal property taxes are deductible on our federal tax returns. I’ve never heard of taxes based on the weight of the car. Aren’t politicians creative!

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