Sort of a hard question because everyone has a different situation but in my case I have a generous pension that we easily live off plus our house is paid for and we have medical/dental paid for by former employer.
I/we have 1 million in savings/investments including $300,000. in cash. Currently I have 2 $100,000. CD's paying around 2.50% and the remaining $100,000. in a Money Market account paying 1.5% which of course isn't locked in like a CD.
Is there an amount most people would recommend keeping fluid like in a Money Market? My thought was to roll this $100,000. Money Market into another CD and earn another 1% more. ($1,000. per year extra)
I don't like the idea of having all my cash being "locked in" but I figured that if I had each CD maturing at different time periods I'd always be within 4 or 5 month's of having one CD available. I also typically keep a few thousand in my checking account for emergencies or if something comes up I need to buy.
I/we have 1 million in savings/investments including $300,000. in cash. Currently I have 2 $100,000. CD's paying around 2.50% and the remaining $100,000. in a Money Market account paying 1.5% which of course isn't locked in like a CD.
Is there an amount most people would recommend keeping fluid like in a Money Market? My thought was to roll this $100,000. Money Market into another CD and earn another 1% more. ($1,000. per year extra)
I don't like the idea of having all my cash being "locked in" but I figured that if I had each CD maturing at different time periods I'd always be within 4 or 5 month's of having one CD available. I also typically keep a few thousand in my checking account for emergencies or if something comes up I need to buy.
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