To move this money.
I have 25K in an savings account - it's technically an IRA savings account and it makes close to no interest. We had rolled over my husband's 401K money when he left a job, but we were moving at the time and I was overwhelmed so the financial advisor said to just park it there and move it once things calmed down.
Well....that was 18 months ago. I've missed out on a lot of interest in the interim! Gah!
My problem, is that it's emotionally serving as my Emergency Fund. I like knowing that it's there, and while it's not making me money, it's safe as it won't lose money, either. Yes, I'd have to pay a penalty if we ever have to use it. No, we've never had to use it for an emergency in the past, so it's quite possible we'll never need to dip into it.
My plan is to move part of it (or do I have to move all of it?) into Vanguard. Maybe move like 15K of it, but leave 10K for my mental health. Once we get rid of PMI on our mortgage, go ahead and pay for an appraisal to get a HELOC on our house so that can be my emergency fund, and then move the rest of it?
We have another small emergency fund of $750 in a savings account, plus I like to keep a 0% APR credit card around. We cash flow most 'emergencies'. I guess this is my worst case scenario mind playing tricks on me...to have this as a back up if my husband loses his job and I can't get a job (I'm a SAHM....but I've had two unsolicited offers for job interviews in the past month from former bosses so this is probably silly thinking on my part.) My husband losing his job is unlikely - and the last time he went looking for a job (trying to switch careers) he got one in 3 weeks and had to turn down 2 other interviews.
I do have a weird hang up with paying for an appraisal to get a HELOC - I just don't want to! But if the HELOC becomes my EF my emergency fund, then not only would I not be paying a 10% fee for dipping into my IRA, I'd also be gaining potential interest on the 25K which will probably make up for the $450 appraisal fee in a year.
Help? I just need the push (or if I shouldn't tell me that as well!)
I think I also get hung up not understanding the tax implications of different moves, so it contributes to the inertia.