Quote:
Originally Posted by scho63
It's a complete oxymoron in this environment.
You realize that if you have $20,000 in an emergency fund and you are deciding between a .025% and a 1% fund it's all kind of bullshit and time for about $175 if you left it there for the entire year?
Don't be so short sided.
Buy a short term corporate bond for a much better yield  |
Quote:
Originally Posted by DaFace
Yeah, a short term bond is probably my suggestion, too. A high yield online savings account like those lew linked would be a good option too.
But really, if we're only talking about a year, it's not going to matter much.
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I'm torn between understanding that, and wanting the money to be very safe. I realized bond funds are fairly safe, but parking money in there does have a chance to go down.
Here's a 5 star Vanguard short term corporate bond Index. Had I parked money in there 5 years ago, it would have gained only .6% in those 5 years.
And at some point had I needed the money, I could be selling some bonds while they are down. That can't happen in a 1% interest savings account. Bonds to me seem a bit shaky with interest rates sure to rise over the next decade. I'm not sure there's a great play there to park emergency savings unless you guys had something I'm missing?
http://quotes.morningstar.com/chart/...&culture=en-US