mountainsoft
Thinks s/he gets paid by the post
As of yesterday my Discover online savings account dropped to 1.25% interest. I like having at least a years worth of expenses in FDIC protected savings, but figured I would invest any extra I have in my taxable brokerage account.
VBTLX seems to average around 3-4% interest over time (5% this year I think), so for now I invested my extra savings in VBTLX.
I know bonds aren't usually recommended in taxable accounts, but it should be taxed at the same tax rate as my online savings account right? So no difference other than earning a bit more interest with a bit more risk. This is money we may need in the short term, so I don't want to invest it in stocks.
Are there any other downsides to having VBTLX in a taxable brokerage account I'm not thinking of?
VBTLX seems to average around 3-4% interest over time (5% this year I think), so for now I invested my extra savings in VBTLX.
I know bonds aren't usually recommended in taxable accounts, but it should be taxed at the same tax rate as my online savings account right? So no difference other than earning a bit more interest with a bit more risk. This is money we may need in the short term, so I don't want to invest it in stocks.
Are there any other downsides to having VBTLX in a taxable brokerage account I'm not thinking of?