I'm receiving part of my settlement from a car accident within the next few days. A post I made here from a throwaway account resulted in my plan for the funds, which is to pay off a couple of debts and then save the remainder of this portion as my emergency funds - around 5 months worth. Since it's a settlement for pain and suffering, I won't be taxed on it. But, as I'm planning to save it and not touch it unless an emergency comes up, I'm wondering if it's best to simply leave it in my savings account or do something else with it.
I have a 401k, but if I put it in there and DID have an emergency and need it (I'm only 21), I'd be taxed heavily on it. If I bought shares with it that are stable just for the gains, I'd be taxed if I needed it at any point and sold those shares, which would mean I'd be spending money unnecessarily then too. But, as far as I know, my savings account with my bank doesn't have any significant interest rates. Is it best to simply leave it in my current savings account? Or should I see if there's another bank that has a better interest rate to save this in? Is that even a thing?
Any advice or suggestions is much appreciated. Thank you!!
Submitted March 05, 2017 at 02:23PM by itsactuallyali http://ift.tt/2lLQQG8
