I have a couple of CDs (non-IRA) maturing over the next several months and I'm considering putting the funds into a bond fund. I've been looking into Vanguard's Intermediate Term Tax Exempt fund (VWITX).
My main concern right now is the potential errosion of principle should interest rates start to rise and the potential for states like CA. defaulting on some of their bonds (VWITX has quite a few CA bonds).
Anyone out there facing a similar situation? Any thoughts?
My main concern right now is the potential errosion of principle should interest rates start to rise and the potential for states like CA. defaulting on some of their bonds (VWITX has quite a few CA bonds).
Anyone out there facing a similar situation? Any thoughts?