BOXX ETF is interesting for cash in a taxable account, particularly for those in a high marginal tax bracket. A yield slightly above Vanguard Money Market (after fees) and you can defer taxation with ‘income’ taxed as a capital gain.
Best place now is a money market fund paying over 5% now. The rates will go down when the fed lowers interest rates, but principal will not. Ultra short -term bonds lost principal the past few years. Not what one wants for short term money
A year or even six months ago, a reasonable answer might have been a 2-Year Treasury Fund or ETF at one of the bigs. But even those delivered a respectable gut-punch in lost value this year.
Of course the flip side is that given the stunning rate spike in that maturity, the loss will be mostly recovered in reasonably short order.
Unless rates keep spiking, but even then – and notwithstanding the recent hit even to two-years – they still just can’t hurt you that badly.
My bond portfolio is in a short-term treasury fund, aka two-years. I have trust issues. 😉
I have money for a summer home improvement project in an online savings account getting half-a-percent. 🙁
I’ll need a bit more than my pension to cover living expenses for three years, until I’m ready to claim Social Security. I’m stashing that money in laddered CDs, which I’ll cash quarterly. I’ll sell some bond funds to buy a flat in a retirement community, once I’ve decided which of the options I’m considering will suit me best.
BOXX ETF is interesting for cash in a taxable account, particularly for those in a high marginal tax bracket. A yield slightly above Vanguard Money Market (after fees) and you can defer taxation with ‘income’ taxed as a capital gain.
A high yield savings account.
Best place now is a money market fund paying over 5% now. The rates will go down when the fed lowers interest rates, but principal will not. Ultra short -term bonds lost principal the past few years. Not what one wants for short term money
A year or even six months ago, a reasonable answer might have been a 2-Year Treasury Fund or ETF at one of the bigs. But even those delivered a respectable gut-punch in lost value this year.
Of course the flip side is that given the stunning rate spike in that maturity, the loss will be mostly recovered in reasonably short order.
Unless rates keep spiking, but even then – and notwithstanding the recent hit even to two-years – they still just can’t hurt you that badly.
My bond portfolio is in a short-term treasury fund, aka two-years. I have trust issues. 😉
I have money for a summer home improvement project in an online savings account getting half-a-percent. 🙁
I hope yield suppression ends.
I’ll need a bit more than my pension to cover living expenses for three years, until I’m ready to claim Social Security. I’m stashing that money in laddered CDs, which I’ll cash quarterly. I’ll sell some bond funds to buy a flat in a retirement community, once I’ve decided which of the options I’m considering will suit me best.