I have $100K plus in an taxable FIDC insured account paying only a nominal interest rate. This money has been held by me as "dry powder" to be invested should a bear market make selected dividend stocks more attractive. The question is "Where can I park this money while awaiting attractive entry points?".I am looking at Vanguard Intermediate Term Tax free bond fund (VWITX). Salient facts are a 9%+ 2011 total return and a positive return most years (2008 was about break even). Bonds in the fund have an average maturity of 5.7 years and the fund is producing a 3.5% tax free yield. Turnover is 15% and management expense a mere .20 . My Federal tax bracket on incremental dollars is 28%.Vwitx pays dividends monthly. By watching the fund price and dividend closely I feel that I should be able to get out of the investment in a timely manner should things turn south.I have IRAs with dividend stocks, taxable bond funds and balanced mutual funds, all tax advantaged (first RMD will be required this tax year).I think that VWITX is a lower risk investment and a suitable place for otherwise taxable dollars. Am I missing something here?Codger
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