Just my two cents.. I have an emergency reserve in a money market fund that is probably losing money against inflation...but I have no desire to put it elsewhere. I want it there where I can right a check against it right now if I need to. Since you mentioned "dry powder", I'm assuming you don't require this 100K for emergency reserve, but instead just waiting for a good opportunity. In my very humble, uninformed opinion, I don't think this will be a "great" year for fixed income. I don't see right now as an "opportunity" for the market in general..but there is probably stuff out there. Since you mentioned a muni bond fund...you could lose money if interest rates climb up over the next five years (5 years being the ave. bond maturity of your fund). Even with no defaults, you could lose money. You might want to get individual muni's that are due to mature in 5 years or so, instead of going into a fund. For suggestions, one idea is to visit your local store front broker, find out what munis he/she knows about that are very secure. Maybe use 10% of your money to set up an account with him/her, and invest the other 90% of it on your own through a discount broker. Another would be if you know anyone that works in your local county/state governement office, hit him/her up for info about the safety of any of their outstanding bonds. Even if your friend is just a secretary, they might be privy to some info. Don't be afraid to look out of your state. The vast majority of your tax savings with munis will be on your federal return, not your state/city return (unless you live someplace where your state/city taxes are outrageous) My caveat on storefont brokers...my humble opinion is that even those working for "prestigious" firms can be outright liars, and will sell you crap if they have a bunch of crap that they need to get rid of. Lastly, as Charlie stressed many many times on this board, your 100K is possibly losing purchasing power if its sitting in a FDIC insured account. If you have heirs, you could consider their ROTH IRA accounts, or if they have outrageous credit card balances they need help with. Sorry for the long ramble...its Sunday morning and I'm on the road. I drove over to Carrolton, AL yesterday, for a second attempt at seeing the ghost in the courthouse window. No luck. Either my eyes are bad, or my imagination is not very active. But there was a sign up announcing some event coming up in April...I think it was April 21-22...to do with the ghost. I'm guessing its some sort of play or festival.
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