MichealKnight
Full time employment: Posting here.
- Joined
- May 2, 2019
- Messages
- 520
Hello Everybody.... was hoping to get some opinions.
I have some cash (400k) that I've sort of earmarked to start being used, 4 years - 5 yearsfrom today. This money will be part living expenses, part college expenses. And I'm mulling where to put these funds - where of course there's minimal risk - but with chance of decent returns. Decent is subjective - in this case - at least beating CD's....but not investing in ARK funds
CD: Approx 3.65%
***************
Keep it simple, it's locked up for 4-5 years and 3.65 doesn't look horrible.
MUNI: 2.94% Yield
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VPAIX for Pennsylvania. If I do the 2.94% - with zero taxes..... the total balance at the and is within 1% of CD. I feel that I'm adding risk for no return.
HOWEVER, is it possible rates start to drop next year? If so - would I vet some price appreciation because if so - then it beats CDs. They say these are 6-10 year durations. FWIW - the VPAIX share price - is 7% less than what it was pre-pandemic.
VWINX Wellesley
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Bond-Heavy - but not wild junk stuff. 7.4 year duration avg.
Stocks - as everyone here knows - Blue Chip stuff. Doesn't mean they don't go down, but to me it just means - there's lesser risk than investing in ZOOM-ish stuff.
Again if rates drop a bit or even level off - then would that not be good for the bond appreciation? Also, as an admitted layman I'm looking at their bonds -- - Amazon, BMW credit, BOA, Comcast - I dunno - it maybe simplistic but I foresee those guys, paying their bills.
Right now, I feel like putting 70% into CDs @3.65% - - and 30% into VWINX feels suitable. (maybe wait a few months and 3.65 goes to 3.9?)
I've done the cursory $20k in I-BONDS
Would really appreciate any opinions or ideas, even question, comments and insults are good too.
I have some cash (400k) that I've sort of earmarked to start being used, 4 years - 5 yearsfrom today. This money will be part living expenses, part college expenses. And I'm mulling where to put these funds - where of course there's minimal risk - but with chance of decent returns. Decent is subjective - in this case - at least beating CD's....but not investing in ARK funds
CD: Approx 3.65%
***************
Keep it simple, it's locked up for 4-5 years and 3.65 doesn't look horrible.
MUNI: 2.94% Yield
***************
VPAIX for Pennsylvania. If I do the 2.94% - with zero taxes..... the total balance at the and is within 1% of CD. I feel that I'm adding risk for no return.
HOWEVER, is it possible rates start to drop next year? If so - would I vet some price appreciation because if so - then it beats CDs. They say these are 6-10 year durations. FWIW - the VPAIX share price - is 7% less than what it was pre-pandemic.
VWINX Wellesley
*************
Bond-Heavy - but not wild junk stuff. 7.4 year duration avg.
Stocks - as everyone here knows - Blue Chip stuff. Doesn't mean they don't go down, but to me it just means - there's lesser risk than investing in ZOOM-ish stuff.
Again if rates drop a bit or even level off - then would that not be good for the bond appreciation? Also, as an admitted layman I'm looking at their bonds -- - Amazon, BMW credit, BOA, Comcast - I dunno - it maybe simplistic but I foresee those guys, paying their bills.
Right now, I feel like putting 70% into CDs @3.65% - - and 30% into VWINX feels suitable. (maybe wait a few months and 3.65 goes to 3.9?)
I've done the cursory $20k in I-BONDS
Would really appreciate any opinions or ideas, even question, comments and insults are good too.