Vanguard Short term inflation fund for emergency fund?

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am
Posts: 4232
Joined: Sun Sep 30, 2007 9:55 am

Vanguard Short term inflation fund for emergency fund?

Post by am »

If my goal for a sizable cash emergency fund is to keep up with inflation, is this a better choice than CDs and high yield savings account? I can tolerate say less than 5% loss in this fund.
larmewar
Posts: 372
Joined: Sat Mar 03, 2007 6:45 pm

Re: Vanguard Short term inflation fund for emergency fund?

Post by larmewar »

It may take some time due to annual limits, but I-bonds are a better than Short Term Inflation now. Short Term Inflation has a negative real yield and you are paying the ER for the privilege.

Lar
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