Comments on: Compartmentalization and its effect on financial decisions. http://www.askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/ Latest Credit Card News, Reviews and Information Thu, 20 Nov 2008 11:57:40 +0000 http://wordpress.org/?v=2.6.3 By: Matt http://www.askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/#comment-262 Matt Thu, 25 Jan 2007 20:39:52 +0000 http://askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/#comment-262 There's something to be said for keeping seperate accounts, as long as it's done within reason and with an eye to functionality. Seperating retirement and college savings makes sense for tax reasons. Seperating long-term savings/investment from short-term operating funds makes sense because the higher-yielding vehicles one wants for longer-term savings generally have monthly transaction limits that make them unattractive for regular-bill-paying purposes, while the account for one's monthly expenses should seldom carry enough of a balance month-to-month for long-term yield to be a meaningful factor. But you're right, of course, that one can easily overdo it, and that overall asset allocation on one's savings and investments is a crucial ongoing consideration. There’s something to be said for keeping seperate accounts, as long as it’s done within reason and with an eye to functionality. Seperating retirement and college savings makes sense for tax reasons. Seperating long-term savings/investment from short-term operating funds makes sense because the higher-yielding vehicles one wants for longer-term savings generally have monthly transaction limits that make them unattractive for regular-bill-paying purposes, while the account for one’s monthly expenses should seldom carry enough of a balance month-to-month for long-term yield to be a meaningful factor.

But you’re right, of course, that one can easily overdo it, and that overall asset allocation on one’s savings and investments is a crucial ongoing consideration.

]]> By: » 84th Carnival of Personal Finance  on Blueprint for Financial Prosperity http://www.askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/#comment-172 » 84th Carnival of Personal Finance  on Blueprint for Financial Prosperity Mon, 22 Jan 2007 13:26:13 +0000 http://askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/#comment-172 [...] Mr Credit Card presents Compartmentalization and its effect on financial decisions. posted at Ask Mr Credit Card’s Blog. [...] [...] Mr Credit Card presents Compartmentalization and its effect on financial decisions. posted at Ask Mr Credit Card’s Blog. [...]

]]> By: » 84th Carnival of Personal Finance  on Blueprint for Financial Prosperity http://www.askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/#comment-173 » 84th Carnival of Personal Finance  on Blueprint for Financial Prosperity Mon, 22 Jan 2007 13:26:13 +0000 http://askmrcreditcard.com/creditcardblog/compartmentalization-and-its-effect-on-financial-decisions/#comment-173 [...] Mr Credit Card presents Compartmentalization and its effect on financial decisions. posted at Ask Mr Credit Card’s Blog. [...] [...] Mr Credit Card presents Compartmentalization and its effect on financial decisions. posted at Ask Mr Credit Card’s Blog. [...]

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