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What's the advantage of doing 6mo T-bills vs. a MM acct? Taxes? What about doing ETFs? Are there worthwhile value-index mutual funds that may also be an option?

ETFs simply give you the option of getting out during the day instead of at the end of the day, as with regular mutual funds. You still are putting yourself at risk of losing principal if things go wrong. Same goes with value funds. If you want to get higher than safe returns of money you will need in the short term, you risk losing principal. There is no escaping that. In hindsight, of course, you will wish you had done something different. No escaping that either.

If you choose T-bills, you won't pay state taxes. In a high tax state, that will make a difference. Currently 6-month t-bills are at 5.1%, a smidgen higher than Vanguard's Prime Money Market (which is fully taxable). You can also lock in 5.1% for 6 months, in case interest rates go down, though you will lose out a bit if interest rate go up. Over 6 months, I doubt the difference will be as important as changes in mortgage rates and housing prices.
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