Ron Peterson <ron@[EMAIL PROTECTED]
> writes:
> On May 9, 4:04 pm, jdbs...@[EMAIL PROTECTED]
wrote:
>
>> After reading a few of Jim's posts, I started to wonder if I should
>> consider moving a ****tion of that money into a moderate mutual fund of
>> some type. Something that is relatively low volatility while still
>> being worthwhile by beating my 4% rate. The added benefit is it still
>> being liquid so that I could tap it "just in case". Would this be a
>> viable strategy? If so, are there any funds that I should take a look
>> at? I know that Jim was using PRPFX. Also, since the investment would
>> be held in a non-retirement account, I assume there are some tax
>> implications in play?
>
> Utility stocks or funds that specialize in them would probably have a
> lower risk of severe loss, but still have a reasonable return. Oil and
> gas pipeline stocks would also fall in that category.
OP said 3-5 year time horizon.... I don't think equities, especially
individual stocks, are an appropriate investment for that short of a
period.
I suggest the OP look at muni bond funds, which are an exceptionally good
deal right now. VMATX is currently yielding 4.19%; since that's exempt
from both federal (28%) and state (5.3%) tax for me, that's equivalent to
a 6.28% taxable yield.
-Sandra the cynic
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