I have recently retired and like some fools failed to plan appropriately. I have put some money into a tsa account with fidelity,however I don't feel the investment is providing sufficent returns at 3.5%. I can withdraw 10% per year for rollover without penalities. Currently I can withdraw $1200 and in May I can draw another 10% which will be about $1700. My question is where to put this money for now until I can amass the necessary $3000 to invest in something like the vandguard index.I am a novice and ignorant in terms of investing and any help would be appreciated.I am currently reading up on the motely fool but until I can get a grasp of the concepts.I'm swinging in the dark.
If you're saving up for an account minimum, the safest place with the greatest yield is a money market (MM) account.If you open an account with Vanguard Brokerage services, you can put your $1200 into their MM account, and then it will be simple to transfer to the index fund when you reach $3000.[Aside: Don't count on an index fund for current income; it is volatile and will fluctuate drastically. You need to have a different place to invest money you'll need to get at during the next 5 years.]Keep reading the website, there's lots of good stuff hidden around the place. One hint -- read all the way through, noting places of interest to explore later, then when you're done backtrack & branch out.
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