Amethyst
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Dec 21, 2008
- Messages
- 12,668
For the sake of discussion, I would like to leave "asset allocation" out of this question.
I need to park money for some future (3 months to 1 year) large expenses. Some of this is ongoing savings, so it's not like we have a big lump sum to put in a high-yield CD.
I have two choices: money market funds or bond funds. We pay the same 24% on income either way. (Any longer than 1 year, and we'd put the $$ in a stock index fund).
All that said, I'd rather put the money in the VG Total Bond fund than in a money market mutual fund. The bond fund's capital gain tends to be very small, so there should not be much tax on sale of shares. Meanwhile we would be earning more income on our deposit. 2.26% vs. 1.54% per yesterday's listings.
Any reason this would be the wrong decision?
I need to park money for some future (3 months to 1 year) large expenses. Some of this is ongoing savings, so it's not like we have a big lump sum to put in a high-yield CD.
I have two choices: money market funds or bond funds. We pay the same 24% on income either way. (Any longer than 1 year, and we'd put the $$ in a stock index fund).
All that said, I'd rather put the money in the VG Total Bond fund than in a money market mutual fund. The bond fund's capital gain tends to be very small, so there should not be much tax on sale of shares. Meanwhile we would be earning more income on our deposit. 2.26% vs. 1.54% per yesterday's listings.
Any reason this would be the wrong decision?