.....................

[C.Ann]

 

[Dan Murphy]

Always the same two questions........

1) What is the PURPOSE of THIS money?

2) What is both the TIME FRAME of accumulating the money and the time period of the distribution of the money?

Both of those are additionally tempered by your 'sleep factor', how well can you sleep if there is temporary volatility in your investment.

All your possible locations are good, depending on the answers to the questions.

 

[C.Ann]

......

 

[Michelle]

My two cents, I would put it in a money market fund until you have accumulated the equivalent of at least six month's salary as an emergency fund. Once you hit that point then consider other investments such as mutual funds.

 

[Dan Murphy]

My two cents also, C.Ann, same as Michelle's. Security blanket money can not be subject to downturns, money market is fine, and upwards of 6 months living expenses for a cushion. After that, evaluate the savings of the additional money, based on those same questions posed above.