Author Topic: VFSTX for medium-term savings?  (Read 834 times)

Captain Cactus

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VFSTX for medium-term savings?
« on: September 29, 2020, 08:16:49 AM »
Anyone have experience with VFSTX, Vanguard Short-Term Investment-Grade Fund Investor Shares?  .97% 30-day SEC yield.

In particular I'm looking for a savings bucket with a higher interest rate than my USAA savings account (.20%), and I'm willing to tolerate a modest amount of share price fluctuation in exchange for that higher yield. 

I have about $150,000 in cash (I don't have a bond allocation...everything is in equities).  I view this as my emergency fund, my dry powder to buy VTSAX/VTIAX with market drops, and perhaps balance out my portfolio in general since I have such a high equity allocation (I also have a VA pension, increases slightly each year and continues to my death, so I view that as a bond allocation).

Anyone have any experience with this, using for a similar purpose?  If so, how has that worked out for you in this low interest rate environment? 

Open to thoughts or perhaps alternatives.  Thanks!  CC



 


Captain Cactus

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Re: VFSTX for medium-term savings?
« Reply #1 on: September 30, 2020, 07:54:34 AM »
Nobody?  Hmmm...


I'm a red panda

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Re: VFSTX for medium-term savings?
« Reply #2 on: October 05, 2020, 07:32:39 AM »
It's gambling. If it is within your risk tolerance, go for it. If it's not. Don't.   The "dry powder to buy market drops" though is just market timing. Statistically, you'd do better to get that $150k into the market and let it ride. How long do you wait for these drops where that money isn't doing anything?