Currently, you don't need to "lock up" money to get a higher yield because short term interest rates are higher than longer term interest rates (inverted yield curve). Short term rates are above 5% - see here - https://personal.vanguard.com/us/FixedIncomeHome.
Since it appears you're just starting out, it might be easier and simpler to just use something like Vanguard's Treasury Money Market Fund - https://investor.vanguard.com/investmen ... file/vusxx. I'm about your age, and use this fund for short term savings. Very easy to buy/sell from/to your checking account.
If the yield curve returns to more normal, and you have more $$ accumulated to make a difference, then take another look at what you described. Or perhaps just use a combo of the above MM fund and a cheap short term Treasury bond fund.
-Alec
Since it appears you're just starting out, it might be easier and simpler to just use something like Vanguard's Treasury Money Market Fund - https://investor.vanguard.com/investmen ... file/vusxx. I'm about your age, and use this fund for short term savings. Very easy to buy/sell from/to your checking account.
If the yield curve returns to more normal, and you have more $$ accumulated to make a difference, then take another look at what you described. Or perhaps just use a combo of the above MM fund and a cheap short term Treasury bond fund.
-Alec
Statistics: Posted by alec — Sun Feb 25, 2024 3:57 pm — Replies 1 — Views 118