Hello all, looking for some advice on one of our investment accounts. If you've seen me post on here elsewhere, you might remember that we (DH + me) recently moved from EJ to Vanguard after a helpful Mustachian found a tax issue with my Roth. Of the bad advice we received from EJ, one was to move $10k that had been part of our emergency fund to an EJ mutual fund. It had been there 3+ years and has only made a bit over $100, after dipping below our initial investment for a long time. Naturally, we feel a bit bamboozled since it's obvious the EJ adviser just had us move the funds so that he had more to manage. We would have kept that as our emergency fund, moving it to an online bank account and just invested much more going forward, knowing what we know now. But this is why we left EJ, right?
To the point, we're trying to determine what to do with this $10k. We have an HSA we're contributing to, individual 401ks, a traditional and Roth IRA for myself, and soon a backdoor Roth for DH when we correct the issue with my Roth. We have an ample emergency fund with enough to live off of for 6 months if we were both to lose our jobs. The $10k was in a (poorly performing) joint mutual fund - The Hartford Balanced Income Fund Class C. We're thinking of moving it to the Vanguard Life Strategy Growth Fund. Curious if anyone has any other suggestions as to how they'd handle it. This is post-tax income, so mostly wondering if there's another way we should look at it. Edited to add clarification: Is putting it into a new fund the best option or should we do something more with it? Cash it out? etc. We have not maxed out our tax-advantage accounts.
UPDATE 12/11/18 I'm reviving this thread for another idea-- might be stupid, but would love everyone's input.
Since we're in process of using the ineligible Roth money to put towards a backdoor Roth under my husband's name... what if we also cashed out the joint mutual fund and added it as more funds towards his backdoor Roth? Good or stupid idea? Pro's and cons? I can't get a real clear understanding if there are limits to how much you can put towards a backdoor Roth IRA per year (possibly $5,500?). If we needed to do it in chunks, we would take the remaining amount and transfer it to a more conservative Vanguard Life Strategy fund until we were able to transfer it to his IRA.
Thanks for helping a rookie!