Due to job uncertainty, my wife and I swept all extra cash flow to a ladder of 1-6 month T Bills and money market funds for the past few years. My worries about losing my job have subsided, and now we're trying to decide what to do with this outsized emergency fund.
Currently, we have about 16 months worth and I want to trim it back to 6 months and put the surplus into something a little further out on the risk curve, while also not going all the way into a Target Date Fund.
Thoughts on something like this?
6 months remain in rolling 1 month T Bills and money market fund
3 months in a gold ETF
7 months in a Target Date Fund that matches age 65 for us
I also like that I Bonds have a fixed rate of 1.30%, so I'm willing to also max those out for 2024 and maybe overfund my tax return as well.
Rationale for gold: it used to track pretty closely with long term treasuries, but there's a pretty clear divergence now over the past few years. I've never held a gold ETF, but I like that it might hold up well if inflation spikes again. I think I'd rather diversify into gold rather than going further out on the yield curve with Treasuries.
Rationale for Target Date Fund: I think it's highly unlikely I'll ever need to go beyond 6 months in the event of a job loss for either of us.
Thanks!
Currently, we have about 16 months worth and I want to trim it back to 6 months and put the surplus into something a little further out on the risk curve, while also not going all the way into a Target Date Fund.
Thoughts on something like this?
6 months remain in rolling 1 month T Bills and money market fund
3 months in a gold ETF
7 months in a Target Date Fund that matches age 65 for us
I also like that I Bonds have a fixed rate of 1.30%, so I'm willing to also max those out for 2024 and maybe overfund my tax return as well.
Rationale for gold: it used to track pretty closely with long term treasuries, but there's a pretty clear divergence now over the past few years. I've never held a gold ETF, but I like that it might hold up well if inflation spikes again. I think I'd rather diversify into gold rather than going further out on the yield curve with Treasuries.
Rationale for Target Date Fund: I think it's highly unlikely I'll ever need to go beyond 6 months in the event of a job loss for either of us.
Thanks!
Statistics: Posted by rph12 — Tue Apr 02, 2024 10:36 am — Replies 7 — Views 865
