In about a week, I'll want to choose either a short-term bond fund or a CD for my retirement portfolio. The 6 month CD pays 5.06 APY. The bond fund is an ETF (CSJ)and is currently yielding 4.84%. Any ideas of the best way to go on this?
LOL! said:Hardly worth thinking about. It probably does not matter what you do unless the amount is tens of thousands of dollars.
LOL! said:If you are messing with $283K, then you had better be getting better than 5.1% interest rate on it. Why are the two choices you presented so dismal?
LOL! said:Vanguard quotes 5.25% for a 3 month CD and 5.2% for a 6 month CD. Their mm fund pays 5.1%. I must admit that we have some cash sitting in lower paying mm funds, but it needs to be available for deployment.
OTOH, 0.25% extra interest on $40K for 6 months is just $50.
But if this pushes you over the edge and makes you transfer your retirement account to VG, it could be a good thing.