… and make a Stash! These are lyrics from Money by Pink Floyd (Dark Side of the Moon).
What does this have to do with this Blog? What are you part of the Topic Police? Lighten up. I can take poetic license when I feel like it!
Now what was I ranting about, a yes, a Stash (no not that kind of stash either, you can go look at the NORML website for that). I mean an Emergency Money stash, and not just a “rainy day” or an “if I get laid off” stash, this is a real EMERGENCY do not use until the glass is broken type fund.
Now why would you need that?
- If you are married and your spouse suddenly dies, ALL your joint accounts are then frozen and you have NO money access. Whoops, didn’t think of that did you? Well, neither did I, but a loved one pointed it out to me (I never said I was smart, but I do know a good point when I hear it).
- Someone steals your spouses identity or worse still YOUR identity and wipes you out? If you can get your money back, it isn’t going to come back quickly, you are going to need an emergency fund somewhere!
- You are in a part of your life where you think you might need to ESCAPE (e.g. abusive relationship).
There are numerous other reasons, but these are the ones that I could think of.
OK, I have convinced you to create the stash? Good! Where do you put it? A bank? Well it isn’t going to really get a lot of interest there, and in there it is EXPOSED. I am thinking of putting some cash away somewhere safe, like say, your SAFETY DEPOSIT BOX (I love it when I can get my stories to intermingle like this).
Remember this money is not an “I want to buy a nice fur coat” fund, it is a “HOLY COW, my life just took a real BAD turn!” fund, so guard it and only use it as a last resort.
Hope for the best, plan for the worst!
Regarding the safety deposit box, the correct A-Team inspired phrase would be “I love it when a plan comes together.” (Please God, help me to stop.)
As far as the frozen accounts, that is correct to a point. However, if your surviving spouse is the executor, they do have access to the funds. There is just paper work that needs to be done. Another important point is to be sure that your joint investments are set up in both names “with right of survivorship”. This prevents the survivor from having to liquidate all those assets. It’s simple to do. Check with your bank or financial advisor to make sure you have yours set up that way.