First question: I have some money set aside for goals other than retirement. I'm not sure when I'll spend it, so I want to keep it relatively liquid in case I need to access it. I'll probably spend most of it within two years. Anything not spent by then will go back into the retirement pot. Where are you keeping money you might need within one to two years. I'm torn between I-Bonds, one year CDs, and Vanguard's ST Corp Fund. What would you do? Better ideas?
Second question: Where would you keep money you won't need for 3-5 years. I'm thinking Total Bond Market Index Fund. I'm thinking the odds are that the extra yield on an intermediate fund will balance out share price declines if rates rise. Do you agree or would you stay short until this plays out some more? Other suggestions?
Second question: Where would you keep money you won't need for 3-5 years. I'm thinking Total Bond Market Index Fund. I'm thinking the odds are that the extra yield on an intermediate fund will balance out share price declines if rates rise. Do you agree or would you stay short until this plays out some more? Other suggestions?