I have some cash saved that I don't need for 2-3 years. I'd like get more than 0.03% I get currently from my B of A account. I have a Roth IRA and Roth 401K through work but I don't want to tie the money up in a retirement account. I understand that I can withdraw the principal anytime but I can't have another 2008 happen to it.
I have heard about T bill ladder where even a 4 week bill gives pretty good returns (1.88% last week - https://www.treasurydirect.gov/instit/annceresult/annceresult.htm) Benefits include state/local tax exempt but do have to pay federal tax, relatively liquid, very low risk
The other option is to put in a high-interest savings account - most banks are offering upwards of 1.8% on these. However, the downside is that earnings are state/local and federally taxed, however, they too are very low risk, FDIC insured, etc.
I know there are options like CD laddering, bond MFs/ETFs, etc. - would love to hear more about those if you feel they would be better.
What do you guys think?
Submitted July 15, 2018 at 10:01PM by Kalpit210 https://ift.tt/2Nggxgs
