Where would you all recommend parking 200K that I need in 4 years (paying off a no interest loan due then)?
Don't need the money/liquidity during this time. CA resident at pretty high 10.3% marginal tax rate
Some possibilities:
1) HYSA: decent current rates but could change, liquid (though not needed), subject to fed/state taxes making effective yield less
2) Treasuries: decent current rates, somewhat liquid on secondary market, subject to fed taxes but free of state taxes
3) Muni bond (CA): state/fed tax free, slightly increased risk, have never bought individual munis (only VCADX vanguard int term ca muni) previously
4) CD: reasonable rates, locked in interest rate, fdic, fed/state taxes
5) plop it into the market- can almost definitely save the 200K separately over the next 4 years and just plop this into long term investments per my IPS
6) some combo of the above or something else I've missed?
Thanks for your help!
Don't need the money/liquidity during this time. CA resident at pretty high 10.3% marginal tax rate
Some possibilities:
1) HYSA: decent current rates but could change, liquid (though not needed), subject to fed/state taxes making effective yield less
2) Treasuries: decent current rates, somewhat liquid on secondary market, subject to fed taxes but free of state taxes
3) Muni bond (CA): state/fed tax free, slightly increased risk, have never bought individual munis (only VCADX vanguard int term ca muni) previously
4) CD: reasonable rates, locked in interest rate, fdic, fed/state taxes
5) plop it into the market- can almost definitely save the 200K separately over the next 4 years and just plop this into long term investments per my IPS
6) some combo of the above or something else I've missed?
Thanks for your help!
Statistics: Posted by somekevinguy — Sat Feb 03, 2024 9:03 pm — Replies 4 — Views 432