Moving Money

[gordy101]

I asked a question along these lines before but thought I’d rephrase w/ detail.

I have money in a CD through Navy federal, took advantage of 5% return for 15months - it’s up in May. Money in an investment account with vanguard that is split between a mutual fund vmfxx and efts (VTI, VXUS, BND, BNDX) and a long term Bond (BLV). Lastly, I have my tsp split between C/S. The mutual Fund is my emergency fund. Should I move any of this money around? Like I see a lot of people have Roth IRAs, which I was considering opening with vanguard and moving my CD to there. Should emergency fund be sitting somewhere else? Would save me a lot of heartache during tax season.

Edit: my vanguard account is a money market account with a mutual fund, ETFs, and bonds. To who ever corrected me last time I probably still didn’t explain the vanguard account right.

 

[holywalk]

@gordy101 Your emergency fund shouldn't be invested (bonds are fine). What happens when the market goes down?

You should have a Roth IRA before a taxable brokerage account, yes.

 

[gordy101]

@holywalk So move the emergency fund to a bond?

 

[holywalk]

@gordy101 HYSA would likely be best.

 

[p5group]

@gordy101 You can get HYSA's currently at 5 percent APY

 

[justquaid]

@holywalk *Government bonds are fine. Corporate bonds I would avoid in an emergency fund.

 

[jeheke]

@gordy101 Why bonds and CD? No need for those unless you are close to retirement.

 

[gordy101]

@jeheke Idk just thought it was a low risk way to grow emergency fund and savings.

 

[ds909002]

@gordy101 Low risk also means low reward. It might help if you're just starting out, but once you've got your financial feet under you, it's alright to move away from them. That said, I do have 1 CD with Navy Fed, that I keep re-upping when it matures.

 

[gordy101]

@ds909002 That was my plan but I missed the part where Roth IRA and TSP Roth weren’t the same thing .