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Author: akleck One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121101  
Subject: Re: taxable vs tax-exempt fund? Date: 9/27/2000 3:40 PM
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Why not a tax-exempt money market fund?

I'd be very careful with bond funds: your capital isn't guaranteed to be there when you need it. The sales person might stress the greater yield that's *possible*, but if you need this for school in the next year, I'd go with a money market.

I speak from experience: I put funds that were earmarked for a house remodel into a bond fund, and I watched the value drop 1% in one month. If you want better yield, just buy some bonds from the US Treasury: you'll know exactly how much you'll get at the end of the term.

Amy
Not a tax professional, just another invester.
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