Like i have mentioned earlier, the markets seem frothy and i still remain on the side lines. But there are deadlines to invest money in IRA accounts.
For the year 2016, the deadline to invest in a Roth IRA account was april 18th. I try to keep my roth holdings simple, equities are held in a target date blended fund, and money i want to keep on the sidelines is held in a money market fund.
I purchased $5,500 worth of VMMXX (Vanguard Prime Money Market Fund). The idea is to lock it into the Roth account and later re balance based on how the markets are doing.
VMMXX currently yields 0.93%, with the yield going up along with the overall interest rate environment. This adds about $52 to my yearly passive income, and best of all - it is tax-free.
Nice. Is your Roth IRA in Vanguard?
ReplyDelete@dividendGeek - yes, vanguard it is. Can't go wrong with the simplicity and the low expense ratios :)
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