I currently have a fully funded (6 months) emergency fund (EF) sitting in my savings account. I was thinking about moving the full EF over into a money market fund (I have been eyeing Vanguard) to stop the impact from inflation. I know we have people here who are much more experienced in investing than I am at this point, so is there any strong arguments against my plan?
1. I've stumbled across some articles warning about possible negative interest rates and extremely low interest rates for MMF's in the current economy (unless I stumbled on old articles, but I doubt I did). I take this to be a situational problem and not a structural problem with MMF's (i.e it will change when the economy improves). Is this a strong enough situation where it is advisable to stay out of the money market funds?
2. I would still be in a stable financial situation after the switch, with enough balances in checking and saving accounts to handle minor emergencies (car breakdown, pipe bursting etc). Moving the EF will not impact my day-to-day financial situation in any way.
Thanks in advance for any advice