Comments on: Why Using a HELOC as an Emergency Fund http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/ This is where your finance takes place Mon, 15 Mar 2010 01:50:05 +0000 http://wordpress.org/?v=2.9 hourly 1 By: The Financial Blogger » Blog Archive » Dealing With Money And Family http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-8583 The Financial Blogger » Blog Archive » Dealing With Money And Family Mon, 18 Jan 2010 10:44:36 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-8583 [...] The 20% cash down was also giving me access to the most flexible type of mortgage ever: the Home Equity Line of Credit (HELOC). So this is why I have turned (once again!) to The Mom and Dad [...] [...] The 20% cash down was also giving me access to the most flexible type of mortgage ever: the Home Equity Line of Credit (HELOC). So this is why I have turned (once again!) to The Mom and Dad [...]

]]> By: The Financial Blogger » Blog Archive » The Perfect Timing For Leveraging The Market http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-7317 The Financial Blogger » Blog Archive » The Perfect Timing For Leveraging The Market Tue, 13 Oct 2009 16:02:29 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-7317 [...] possible while the rates were low, it is possible to borrow for 3%. This is what you can get from a Home Equity Line of Credit. While HELOC’s are seen as the product of greed, I can tell that people paying 3% right now are [...] [...] possible while the rates were low, it is possible to borrow for 3%. This is what you can get from a Home Equity Line of Credit. While HELOC’s are seen as the product of greed, I can tell that people paying 3% right now are [...]

]]> By: The Financial Blogger » Blog Archive » How Life Can Make Things Happen http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-5821 The Financial Blogger » Blog Archive » How Life Can Make Things Happen Tue, 12 May 2009 10:31:40 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-5821 [...] that the Smith Manoeuvre is a great way to create wealth over long term. However, I cannot use my Home Equity Line of Credit for leverage purposes anymore. Therefore, I won’t make Smith Manoeuvre update until I start [...] [...] that the Smith Manoeuvre is a great way to create wealth over long term. However, I cannot use my Home Equity Line of Credit for leverage purposes anymore. Therefore, I won’t make Smith Manoeuvre update until I start [...]

]]> By: The Financial Blogger | End of the Year Net Worth Update http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-4317 The Financial Blogger | End of the Year Net Worth Update Wed, 31 Dec 2008 10:01:23 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-4317 [...] Home Equity Line of Credit (HELOC): $253,000 [...] [...] Home Equity Line of Credit (HELOC): $253,000 [...]

]]> By: The Financial Blogger http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-1944 The Financial Blogger Sat, 01 Mar 2008 18:20:36 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-1944 Ana; this is in loonies so it might become interesting in a year or so ;-) Ana; this is in loonies so it might become interesting in a year or so ;-)

]]> By: traineeinvestor http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-1942 traineeinvestor Sat, 01 Mar 2008 06:44:19 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-1942 As a person who firmly believes that emergency funds are wasteful (low returns compared to the alternatives), allocating the money that would otherwise be parked in a low retrun emergency fund to other investments wins my vote. An additional point in favour of this strategy is that it gives you a choice: if you need the money you can draw on your HELOC or you can sell some of your investments. Which one? That will depend on your circumstances at the time. As a person who firmly believes that emergency funds are wasteful (low returns compared to the alternatives), allocating the money that would otherwise be parked in a low retrun emergency fund to other investments wins my vote.

An additional point in favour of this strategy is that it gives you a choice: if you need the money you can draw on your HELOC or you can sell some of your investments. Which one? That will depend on your circumstances at the time.

]]> By: Debt Free Revolution http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-1941 Debt Free Revolution Sat, 01 Mar 2008 04:51:37 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-1941 FP-Mike, I never said everyone up there was named Mike...but both you are named Mike, both wrote a rebuttal to the same blog post within 24 hours of each other! Oh, and you're both Canadian LOL Add to that a cousin and an uncle and a couple friends here locally, plus about a handful of American Mikes who are pf bloggers ... and I gotta do something to keep y'all straight :D Or are you two just yanking my chain here...? Oh, Mike-TFB (is that better?) when you say you barely net that much after taxes, is that in USD or in Loonies? If it's in Loonies, you probably make more than we do now.... FP-Mike, I never said everyone up there was named Mike…but both you are named Mike, both wrote a rebuttal to the same blog post within 24 hours of each other! Oh, and you’re both Canadian LOL Add to that a cousin and an uncle and a couple friends here locally, plus about a handful of American Mikes who are pf bloggers … and I gotta do something to keep y’all straight :D

Or are you two just yanking my chain here…?

Oh, Mike-TFB (is that better?) when you say you barely net that much after taxes, is that in USD or in Loonies? If it’s in Loonies, you probably make more than we do now….

]]> By: The Financial Blogger http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-1928 The Financial Blogger Thu, 28 Feb 2008 11:34:46 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-1928 Ana - some of us are named michael or mikael as well ;-) we only have 3 different names in Canada ;-) LOL! Ana – some of us are named michael or mikael as well ;-) we only have 3 different names in Canada ;-) LOL!

]]> By: Four Pillars http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-1926 Four Pillars Thu, 28 Feb 2008 05:04:44 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-1926 Interesting take on this FB. Ana - we are not all named "Mike" up here. :) CR - good point about the liquidity of a large emergency fund. B&C - good point as well - the blog post might have been Queer Cents http://www.queercents.com/2008/02/04/countrywide-suspending-equity-lines-of-credit-heloc/ Interesting take on this FB.

Ana – we are not all named “Mike” up here. :)

CR – good point about the liquidity of a large emergency fund.

B&C – good point as well – the blog post might have been Queer Cents http://www.queercents.com/2008/02/04/countrywide-suspending-equity-lines-of-credit-heloc/

]]> By: The Financial Blogger http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/comment-page-1/#comment-1924 The Financial Blogger Thu, 28 Feb 2008 01:37:06 +0000 http://www.thefinancialblogger.com/why-using-a-heloc-as-an-emergency-fund/#comment-1924 Ana; You may be able to save money at this pace, but you will probably agree that most people can't (I barely make this much net of taxes!). I agree with you when you say that we are living in two different systems in term of taxation, banks and insurances. I guess this is the beauty of having bloggers communicating to each other; we can express opinions and learn more about what is going on in the world :-) CR; I just can't agree more with you, having one of two months of income in a savings account won't hurt you much while the HELOC can be used for major events. B&C; That's crazy, I actually never considered having the bank canceling my HELOC... On the other side, mine is at 80% of my property value so I have quite a buffer. If I understand correctly, you could get a 100% HELOC in the US. This would definitely be a problem if banks start canceling them! Ana;
You may be able to save money at this pace, but you will probably agree that most people can’t (I barely make this much net of taxes!).

I agree with you when you say that we are living in two different systems in term of taxation, banks and insurances. I guess this is the beauty of having bloggers communicating to each other; we can express opinions and learn more about what is going on in the world :-)

CR;
I just can’t agree more with you, having one of two months of income in a savings account won’t hurt you much while the HELOC can be used for major events.

B&C;
That’s crazy, I actually never considered having the bank canceling my HELOC… On the other side, mine is at 80% of my property value so I have quite a buffer. If I understand correctly, you could get a 100% HELOC in the US. This would definitely be a problem if banks start canceling them!

]]>