Author Topic: Emergency Fund Allocation  (Read 800 times)

Jevs05

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Emergency Fund Allocation
« on: September 14, 2017, 10:18:04 AM »
Hi there!

I have built up a savings account with enough money to complete what I want to call my emergency fund, but can't decide where to put it. I have been looking at investing it in essentially what would be a retirement account (40% stock 60% bond) with vanguard to help lower fees, grow it a little bit as opposed to having it sit in a bank, and still have access to it. Is this a terrible idea or a good one? I know Betterment has a similar set up, but I could buy into a Vanguard fund with lower fees to do essentially the same idea. Thoughts?

Sibley

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Re: Emergency Fund Allocation
« Reply #1 on: September 14, 2017, 10:23:16 AM »
You need to be able to easily access the money. A retirement account is generally not accessible. Bad idea.

Taxable investments, savings account, etc?

Jevs05

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Re: Emergency Fund Allocation
« Reply #2 on: September 14, 2017, 10:58:43 AM »
Calling it a retirement account is the incorrect wording. It would be a brokerage account in an index fund that is 40% Stock 60% bond.

Currently in savings is 12k, investments is 5.5k where I maxed out my Roth IRA. Just started working this year.