Paying unexpected bills - savings v PM - 5 year return

[StuP]

So, I'm being hit with an unexpected expense, (~10k). Given a 5 year term, would you keep money in the bank, (currently 5%), or sell gold / silver ?

 

[lostchild]

So, I'm being hit with an unexpected expense, (~10k). Given a 5 year term, would you keep money in the bank, (currently 5%), or sell gold / silver ?

Just me, but if you’ve got the money in the bank, and don’t have another need for it now, I’d take it from there. Can’t be guaranteed that 5% interest will hold up for 5 years. And no sense paying interest on a loan from a second party.
But, you must be disciplined and make payments + interest back to your savings monthly ‘til you get it all paid back. Perhaps by then you can continue payments to yourself and continue to build your savings.

 

[StuP]

What I'm thinking about is to sell some bullion to raise the cash as opposed to raiding my emergency $, ie will PM prices outstrip deposit interest over 5 years. No easy answer without that crystal ball.

 

[WallsGa]

Depends on what % of your savings that represents. If it wipes you out, sell the gold. If it leaves you with 5k min still in savings, do some savings, some gold.

If you would still have 10k plus in savings just take the cash out. Save quickly and put it back in as quickly as you can.

Edit: but I wouldn’t just leave it in savings. Put 25% savings and the rest in an index fund and contribute to it bi-weekly.

 

[StuP]

Depends on what % of your savings that represents. If it wipes you out, sell the gold. If it leaves you with 5k min still in savings, do some savings, some gold.

If you would still have 10k plus in savings just take the cash out. Save quickly and put it back in as quickly as you can.

Edit: but I wouldn’t just leave it in savings. Put 25% savings and the rest in an index fund and contribute to it bi-weekly.

I keep around 10 months cash reserve, which is what I'd raid. Most every spare $ goes into IRA's or managed investments against a looming redundancy, and probably a semi retirement, I can't afford lol.