I have an RRSP that over the last two years has held at ~10.3% and I have an emergency fund of $10,000 that is just sitting in my savings account.
Would it be prudent to put that whole $10,000 into a mutual fund, slowly making money for me but have to pay taxes on it every year. OR, put the money into a tax free savings account? (TFSA)
I would contribute about $150/month as well.
I ran some spreadsheets on putting the $10k savings over two years and putting them in a mutual fund. Then once a year take the interest earned and put it into something higher risk like an equity fund. That way the mutual funds interest and re-invested dividends and growing the emergency fund and when I put the accumulated interest into a new fund I am not defeating the originals growth.