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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 334.44+0.7%Nov 26 4:00 PM EST

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To: horsegirl48 who wrote (389)7/20/2000 11:47:46 AM
From: Ken Brown  Read Replies (2) of 10065
 
HG,

Well, I definitely would not recommend I-Bonds for short-term cash purposes. They're best kept for at least 5 years ("early withdrawal penalty"), and no shorter than 6 months. They can be used as part of your fixed income asset allocation, but not for parking cash that's destined for other places. Same applies to CDs, IMO. MMFs are the way to go for that.

But if you're talking about fixed income money, I don't think you'll get max bang for the buck with MMFs. They're paying a lot now, but if we do go into a slowdown, rates will come down, and you won't get the benefits of an increase in NAV like you would if you used an intermediate term bond fund.

I'm not sure if that answered your question or not. :)

Ken
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