We're also at kind of a dicey place in life--DD16 is finishing her sophomore year, so college isn't too far away. She has a 529, but it won't cover everything, and the money we have mentally earmarked for college is in individual stocks. The general plan is to directly pay her tuition bill, then "pay ourselves back" by selling some stock. Since it's only 2 years out, we don't want to rock the boat, investment-wise. She hasn't done a lot of serious college investigating yet. We're hoping she picks the flagship State U--in this case, UNC-Chapel Hill, which is one of the top bargain schools for in-staters. Naturally, she's also considering Pricey Private U, which I think is the wrong choice for many reasons, money being only one of them. We can pay for Pricey U, or we can pay for law school after State U--we are not made of money.Thanks! We do something similar with our mad money as we like to call it. It’s easily accessible (have it split between Amex and Discover high yield savings) and secure. I mostly use it to trigger new account bonuses by bouncing funds around for a few months as needed. I just feel like we’re potentially missing out on higher returns (with some risk of course) and feel comfortable putting $20-$30k into a low/moderate risk account. We’re 10 years (minimum) away from early retirement (I’m 42, DH 47, DD 8) and also DD’s college but we have plans in place for both of those things (and likely one of us will continue working past 10 years but hopefully with less stress and more flexibility).
VTSAX (Vanguard Total Stock Market Index Fund) has 10.95% for an average 5 year return but of course I understand past performance is not indicative of future results.
Curious to hear what others in this situation do with their “excess” emergency funds.