Author Topic: New Vanguard User - Where to park Cash?  (Read 1338 times)

Getmeouttahere

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New Vanguard User - Where to park Cash?
« on: January 22, 2020, 07:52:39 AM »
Hello, I have 60k of cash that is currently sitting in a bank of america checking account earning almost no interest (and losing money considering inflation).

Yesterday, I opened up a Roth IRA and Taxable Account through Vanguard. Both of these accounts automatically require Vanguards Money Market (Settlement Account) VMFXX.

The Roth will be funded through transfer from my current Enterprise account. My question is more so what to do with the 60k. I am thinking of funding the Taxable linked VMFXX account and depositing 4k or so monthly into VTI or VSTAX. Once I get down to 15k or so I would hold in cash to keep as an emergency fund. Is the VMFXX a good candidate to hold around 15k at all times? Is there a better option?

MissNancyPryor

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Re: New Vanguard User - Where to park Cash?
« Reply #1 on: January 22, 2020, 07:57:59 AM »
I like VMMXX.  Yield bounces around the 2% range.   

SunnyYellow

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Re: New Vanguard User - Where to park Cash?
« Reply #2 on: January 22, 2020, 08:47:08 AM »
I too like VMMXX for parking cash. It pays slightly higher interest than VMFXX.

BECABECA

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Re: New Vanguard User - Where to park Cash?
« Reply #3 on: January 22, 2020, 09:06:30 AM »
Iíve closed down my old online savings accounts, now I keep my cash emergency fund in that Vanguard settlement fund (VMFXX). It simplifies things, and I donít have to chase new online savings accounts for interest rates that keep up with the current going rate.

MustacheAndaHalf

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Re: New Vanguard User - Where to park Cash?
« Reply #4 on: January 23, 2020, 06:17:19 AM »
@Getmeouttahere - Do you need $60,000 to be all in cash accounts?  After you account for emergency money and upcoming purchases, how much can you invest in a taxable account?

Getmeouttahere

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Re: New Vanguard User - Where to park Cash?
« Reply #5 on: January 23, 2020, 08:05:49 AM »
I can invest 45k of the available 60k into a taxable account and plan to so as a lump sum. Im more concerned about keeping the 15k in the VMFXX account.
No FDIC insurance and not sure its considered good as far as interest earned goes.