Skip to main content
No. of Recommendations: 0
Here is my quick and dirty two cents...

<BUT yield and NAV seem will probably compensate enough to at least preserve principal>....

I did not look at the fund prospectus, but if interest rates rise after purchase, I believe most times NAV will decrease more than you'll recieve in dividends.

<Is there a better plan?>....

It sounds like you want access to 100% of the funds in 3 to 5 years. I'll suggest two alternatives. One is open an account with Etrade or Zionsdirect and purchaser zero-coupon treasuries (STRIPS) due in 3 to 5 years. If your putting in $500 per month, you'd just purchase every other month. The $10.00 commissions will take a little bite, but without breaking out a calculator, you might come out ahead than if it was in a short term bond fund

Secondly, buy a note ever other month in treasury direct, two year or five year.

I added on 800 square feet to our ranch type house, adding in an upstairs, a bathroom, wood flooring, tile flooring, etc, was sort of fun. If you've got questions there, feel free to ask.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.