I have incomed out of IRAs and I max my 401K. I would like to move some of my cash - about $20,000 into another fund and use also use the account as a place to put monthly contributions that aren't going into a IRA any more. Most of my money is in S&P index funds and/or target retirement (TSP and Vanguard). I have some in a IRA bond fund as well that has averaged about 5% for the past 20 years or so.
So - my question is - where? My temptation is another bond fund (the current is mostly US treasury fund). If so, any recommendations or should I stick w/ the current fund that has done pretty well. This money is being taken from my "emergency stash" to a longer term account. I'm leaving enough money for emergency in the current savings account. I would like a lower risk (than stocks) profile for this particular pot of money.
Also - tax exempt funds ??? - is there a reason to invest in these? I don't have millions of dollars (yet!?!) so I don't earn much taxable interest at this point. There are some funds that look like they have pretty good returns (consistent with other bond funds). I just don't really understand the tax exempt issue - is this just when you sell or tax on the dividends or ?
I am pretty noob at all of this - forgive me if these are overly basic questions or should be obvious. I did reading on Vanguard and other sources online and I am still confused, so I wanted to ask the experts there.
