Quote:
Originally Posted by Gigi3000
Should i move all funds to Vanguard Federal MM? I have it currently in VTSAX and VTTVX. I'm not the best at reading my returns but neither have paid a dividend or a very small one this year. Its an IRA. Ive been to a financial advisor but these interest rates have gone up in the last few months so i question whether i should do their recommendations at this time. I would have about 1 million in the MM if i make this change, i know that is over that SPIA limit.
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I would recommend NOT moving all the funds, you should move a PORTION of the funds to a bond fund. To feel more comfortable you can move 50% of the funds to the MM fund for the current moment.
You may have a tax bill when you perform the transaction, depending upon the account type.
As a corporate finance professional, I would concur with others to find a fee only CFP and have a review with him/her to better allocate your money.
Retiredguy has a good recommendation for the PORTION you transfer to fixed income. The outlook for gains for this decade of equity returns are not a rosy as the prior decade. and the current outlook is not rosy either. However, not rosy just means smaller price increases / returns and should not be taken as meaning a crash. . as many histrionic black and white types might interpret. . .
if worried, transfer 1/2 to MM and RUN to see a fee only CFP, and do not look at the choice as all or nothing.