Short term investments

[Closet_Gamer]

Hey all.

I'm curious if anyone has any creative ideas on safe places to put cash for ~3 years?

My wife and I just finished paying off our mortgage and now we're going to start slamming money aside for some freedom in a few years. No where near FIRE, but trying to get enough liquidity in place to have the option to leave megacorp and consult/start a company/join a smaller firm.

Expect I can put away about $400-500K if I put my mind to it.

Other than just spreading it around in some non-yielding CDs, any suggestions? This is definitely more about preservation than anything else.

Thanks for any suggestions.

 

[pb4uski]

It is the old risk reward tradeoff but here are a couple of relatively safe suggestions that are in my portfolio.

1. Internet bank - I use discoverbank but there are others. A regular savings account currently earns 0.8% is FDIC insured (to $250k IIRC) and has no interest rate risk.

2. VFSUX Vanguard Short Term Investment Grade Fund Admiral Shares - current yield is 1.72% but duration is 2.4 years so there is a bit of interest rate risk associated with the fund.

Slim pickings in this space today.

 

[JPatrick]

Boring, but keep an eye on possibilities with I-Bonds. Due to limits you could only deploy a small amount of your stash, and you might need to cash out with a penalty, but even with those downsides you can beat CD's and I- Bonds are free of risk and tax deferred.

 

[Closet_Gamer]

Good thoughts. Thanks!

 

[grasshopper]

+1 VFSUX Short-term investment grade fund.

 

[kaneohe]

1) liquid accounts http://www.fatwallet.com/forums/finance/783099/
TIAA Direct "teaser" ? rate 1.25%

2) CDs slightly higher for 2.5 yr term
http://www.fatwallet.com/forums/finance/682884/