I find myself with about 9 months worth of living expenses in my emergency fund. That's a little more cash than I think is necessary. Right now I have it all in a Goldman Sachs Savings making 1.05%. I would like to take about 3 months of this and invest it very conservatively. I don't necessarily want to throw it in my regular allocation and would like to be very low risk and as liquid as possible with the money. The only big planned big expenditure in the next 3 years will probably be a car. So I guess that would be the thing it would be saving up toward.
Right now I am looking at Vanguard California Intermediate-Term Tax-Exempt Fund (VCAIX) or Vanguard Short-Term Investment-Grade Fund (VFSTX) with the money. I live in California and we are in the 28% tax bracket gross income and will probably be 25% net.
My question is if anyone has any advice on figuring out if the tax advantages of the Calif intermediate bond neutralize the extra risk over investing in VFSTX?
Submitted February 11, 2017 at 11:05PM by FalafelRaptor http://ift.tt/2ky9H7V
