We are in the cash accumulation stage prior to our retirement in 20 months or so. I am trying to find the best place to park this cash. Currently:
CU $64k : 0-25k 3.5%, >25k .50%
CD $25k (3 yr) 1.74%
Ally $57k @ 1%
Thinking of moving $50k to Vanguard High-Yield Tax Exempt fund (VWALX).Yield is approx 3.69%.
We had $300k gross income in 2015, maxed out our 401k's 24k each (project same for 2016 & 2017). DH contributes max to HSA. No deductions so we are in high tax bracket. Also, current 401k is slightly over 2.mil. Have done back door Roth IRA for DH last 2 years as well.
So basically trying to get the most return for the cash with relatively small risk. Does this sound like a reasonable plan? Thoughts, critique welcome.
Thanks in advance.
CU $64k : 0-25k 3.5%, >25k .50%
CD $25k (3 yr) 1.74%
Ally $57k @ 1%
Thinking of moving $50k to Vanguard High-Yield Tax Exempt fund (VWALX).Yield is approx 3.69%.
We had $300k gross income in 2015, maxed out our 401k's 24k each (project same for 2016 & 2017). DH contributes max to HSA. No deductions so we are in high tax bracket. Also, current 401k is slightly over 2.mil. Have done back door Roth IRA for DH last 2 years as well.
So basically trying to get the most return for the cash with relatively small risk. Does this sound like a reasonable plan? Thoughts, critique welcome.
Thanks in advance.