Like the title says, I'm sitting on a lot of cash.
$15,000 is set aside specifically six months of expenses in case of job loss.
I've got $7,000 set aside for a down payment on my next car and $2,000 set aside for car maintenance. I've got a pretty old car, so it's somewhat needy as far as repairs goes. I've got a 2002 Chevrolet Prizm with ~93,000 miles on it. Pretty low mileage for a car that old, but it suffers from a lot of rust and rot in the undercarriage. I've also got $1,000 set aside for car insurance.
I've got about $5,000 set aside for miscellaneous things like gifts, vacations, replacement cell phone/laptop, etc. Another $5500 towards next year's Roth IRA contribution.
If my math is correct, this leaves about $25,000 unassigned. I might put it towards a down payment on a condo in the future.
I'm feeling somewhat uncomfortable leaving all of this in cash due to inflation risk. What sort of tiering strategies would you use to get some extra return? I was thinking about putting some into a municipal bond fund for my state, but the only funds I can find have fairly long durations and thus more risk than I'd be willing to tolerate in a rising interest rate environment.
TL;DR: What kind of tiering strategy would you use to get some extra return on $60,000 cash without a lot of risk?
Submitted May 24, 2017 at 10:06AM by mistersynthesizer http://ift.tt/2rzPbdQ
