Quote:
Originally Posted by Demonpenz
I am looking to park cash. I already have money in vanguard from a previous employer. Do I need to move it around? Do I need to sign up again once for employee retirement one for parking?
|
Dakcman is right. Don't park it in a retirement account. You'll get destroyed when you take it out. Mason jar would be better than a retirement account if you plan to get it out.
Keep some cash in the bank though for incaseshit money. While investment accounts are pretty liquid it does take a little time. Plus if you pull some out a couple times a year because your refrigerator died or you need tires or whatever you'll have to pay tax on the gain and do all the bullshit on the tax return for short and long term gain splits and all that bullshit for a grand or whateever may take some shine off your gains. Especially if you are doing your own taxes now and have to hire a professional for a few bucks of cap gain.
Bottom line: keep some cash in the bank.
What a lot of people did before the interest rate went to LOL is have 12 12 month CDs that mature each month. That way you've always got a little money available each month and if shit gets hairy the bank will loan you money against the CDs. Probably not a good idea until interest rates come off the ground some.