Early Retirement & Financial Independence Community - View Single Post - Vanguard Limited Term Bond as emergency fund

wabmester · 09-20-2004, 02:06 PM

I would stick with a money market for an emergency fund. Short-term rates are on the way up, so a fund with a 2% yield and a 2-year duration is pretty likely to return close to zero over the next year (IMHO).

There are a few corporate MMs yielding in the 2.5% range right now (Ford, GM, credit card companies, mortgage lenders, etc).

09-20-2004, 02:06 PM	#2
wabmester Thinks s/he gets paid by the post Join Date: Dec 2003 Posts: 4,461	I would stick with a money market for an emergency fund. Short-term rates are on the way up, so a fund with a 2% yield and a 2-year duration is pretty likely to return close to zero over the next year (IMHO). There are a few corporate MMs yielding in the 2.5% range right now (Ford, GM, credit card companies, mortgage lenders, etc).