Originally Posted by dessert
BigMoneyJim, I actually did put money into "municipal bond Mutual Funds" because I was trying to:
Have low risk with the money
Get some returns more than money markets are paying
Not tie money up in CDs that are also paying low
and...it's tax efficient.
If I am making a mistake here someone set me straight. I know there are no right answers but this doesn't seem to be a bad decision on my part unless I'm missing something.
I do the same for my short term (< 5 years) savings AND immediate emergency fund needs.
I'm still accumulating albeit FIREd with a steady fixed income (not an ordinary situation) at age 51.
I like the "lower risk" and moderate return aspects of munis versus other choices and have instant checkwriting privileges with clearing in 3 business days.
So I use TE muni bond mutual funds to get some nice 30 day interest payments while I do ongoing DCA into same funds.
If inflation kicks in and clobbers me, I have something to tap into in the short term and can avoid messing with my long term retirement portfolio.
Call me crazy
, but it w*rks for my situation.