Do you purchase VFSTX directly from Vanguard? I think I might go with something with a slightly better rate of return, but Im not sure. Still have to figure out plan. My current bank offers a great interest rate because I have direct deposit, but the interest rate lowers with the higher amount of cash I have with them.
I might buy some VFSTX and VBIIX to add a little risk/return to it.
Yes, I use vanguard directly.
Check out this 10 year chart of VFSTX, VBIIX, and SPY to give you an idea of the volatility http://imgur.com/BuSFm
against the S&P500.