I was just reading over Tybee's $10K to invest thread, and I have decided to start one of my own.
Next month an EE bond my mother gave me will mature. I'm not quite sure what to do with the money. I have money kind of scattered around, mostly in savings accounts. I am contributing the max amount to my 403(b) that my employer will match (though of course, I realize I can increase my contribution even if they are not increasing theirs!). I have a Roth IRA and a regular IRA with Vanguard (mostly because I got a similar bond last year and this was a way to avoid taxes). I have $10K in savings so I can replace my 20 year old car (I may not spend that much on the car, but it's nice to know the money is there). I have an emergency fund. I also have what Mary Hunt calls a Freedom Account--money I put away each month to cover irregular expenses such as car insurance, renter's insurance, birthday presents, etc.
Possibilities...I know nothing about financial planning and find it quite boring to read about investments. Also, I do not like taking risks with what little money I have. So...
My sister has recommended a financial advisor to me, but I've never gotten the guts to go see the man. He's associated with a local bank and I do trust her judgment.
Someone on another board recommended I just park at least $10K in a VTSAX and forget about it for the next decade. I admit that I had never heard of a VTSAX or an ETF and there seems like a LOT of learning to do about this stuff. (My 403(b) and Vanguard are both in moderate risk social choice investments).
My mother is quite fond of CDs, though I really don't know why. She told me the other day that Morgan Stanley has a 2% return on a $10K investment, but I discovered this expired last month.
I just don't know what to do. I would like some liquidity, in case I need the money for something big (like a down payment on a house--that is a possibility). Someone on said other board told me not to go near my sister's financial advisor (though I'm not sure why).
Can anyone give me a bit of practical advice? I know you're not supposed to park large amounts of money in savings accounts, but I've done so all my life, mostly because, like Scarlett O'Hara, "I'll think about that tomorrow."
Thanks!