Quote:
Originally Posted by maat55
Where do you put a 15,000 EF? Would breaking it into 2 places be wise? I would like to put half into stock MF's. Need suggestions.
|
What is monthly expenses?
I would divide into 6ths.
1/6 in a 90 day CD
1/6 in a 90 day CD (maturing 30 days later)
1/6 in a 90 day CD (maturing 30 days later)
1/2 in another investment. A moderate allocation fund. I just opened PRPFX, which owns stocks, bonds, swiss francs, gold and silver. Quite moderate. a 40-60 fund like Vanguard Wellesley might also be prudent, or a 20-80 fund like T Rowe Spectrum Income would also make sense here.
If the 1/6 portion is NOT enough to cover 1 months expenses, then the 15k is not enough. Make sure each CD in the CD ladder has one months expenses in it.
In addition I would harvest the interest from the CDs each year and invest the interest into the moderate allocation fund.
The plan I showed above is very close to the plan I executed for myself. I am not at point where I have PRPFX balance equal to 3 months expenses yet.