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Thanks, fellow Fools
After I read your answers, I believe some clarifiacation is required.

As far as "Income cushion", I meant the money that we need to live for 5 years, the amount needed for three to five years usually invested in bonds and the money needed for the first three invested in MM.

As far as "cost effective", I meant the benefits of tax free income (treasuries) versus the low costs bond funds (Vanguard).

Back to my original question, for the money that we will need in three to five. What vehicle of investment is more practical (as far as total returns is concern) treasuries or bond funds?
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