Hello,
Long-ish time lurker, first time poster, 29-year old male married with 175k combined income. Soon to drop with first kid on the way and wife will drop to part time at most.
Heres the question: I just opened up a Roth IRA for both my wife and I as well as a taxable account. Both of these accounts when opened included a mandatory Money Market (they call it settlement account) for which money transfers from to fund the Roth's and Taxable account. The default "settlement" account is their VMFXX which I believe earns about 1.5% APY. Right now I have the below financial situation:
- House is paid off (150k)
- 100k in work Roth 401k (not moving this) with Fidelity.
- 27k combined total in both Roth IRA's.
- 60k cash in BOA account.
I plan to transfer my Roths over to the new Vanguard acc's (27k). I would like to keep most of the 60k in the taxable VMFXX account and slowly fund the taxable account (after maxing Roths of course) from there. I would also like to keep my emergency fund of 15k in the VMFXX account at all times. Does this seem like a reasonable strategy? I realize I didn't get into what the funds would be invested in. Im more concerned with the overall strategy of funding the Roths, then taxable and then keeping the 15k minimum emergency fund amount in the VMFXX. My bank savings would only have $500-$1000 for expenses and outside of that, well, all my money is accounted for I guess. Is the VMFXX a good place for this?