Now that our house has sold and closed and the money is in our hands, I am in a quandary as where to park residual funds. After questioning this fine forum about paying off the mortgage vs not paying it off, we decided to pay it off and get that burden off our shoulders. So, we have about $40k left over and trying to decide the best place to "invest" that money.
We have an IRA in Vanguard Wellesley Admiral, have money in PenFed CD's only getting 3%, have have a slush fund at Ally Bank (money market getting .085) and now where to put this $40k from the house sale. I need something very safe but not willing to do the 1%-2% measly returns that are everywhere. I looked at Vanguard Life Strategy Income Fund (VASIX) which is about 30/70 stock to bond ratio. It is in the 5-7% return level which is fine with me but some hangups. With that fund you can add to it anytime but if you withdraw funds, you cannot reinvest again for 60 days. Shouldn't present any problem but you never know.
Any experience out there with these type funds? I understand the frequent trading issue but maybe there is a better option. Help!
We have an IRA in Vanguard Wellesley Admiral, have money in PenFed CD's only getting 3%, have have a slush fund at Ally Bank (money market getting .085) and now where to put this $40k from the house sale. I need something very safe but not willing to do the 1%-2% measly returns that are everywhere. I looked at Vanguard Life Strategy Income Fund (VASIX) which is about 30/70 stock to bond ratio. It is in the 5-7% return level which is fine with me but some hangups. With that fund you can add to it anytime but if you withdraw funds, you cannot reinvest again for 60 days. Shouldn't present any problem but you never know.
Any experience out there with these type funds? I understand the frequent trading issue but maybe there is a better option. Help!
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