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URL:  https://boards.fool.com/gogreengo-asks-you-said-quothavent-left-any-31382058.aspx

Subject:  Re: Where to put cash portion? Date:  8/24/2014  5:06 PM
Author:  intercst Number:  75551 of 98899

gogreengo asks,

You said, "Haven't left any funds in a Money Market Fund or CD in years." Why is that? Are you getting better returns in the short-term bond fund?

Yes.

The yield on Money Market Funds is essentially zero. The highest yielding 3-yr CD according to bankrate.com is 1.46%. The Vanguard fund's SEC yield is 1.54%.

http://www.bankrate.com/partners/sem/cd-rates-v6-nl.aspx?ec_...

Of course, a CD is FDIC-insured and you can always lose money in a bond mutual fund if interest rates rise, but for now I'm willing to take the risk. (I'm only holding 6-month's worth of living expenses in the account.)

intercst
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