AustenNut wrote:Not to hijack the thread, but is it people's recommendations that money for a car fund should be placed in CDs and other FDIC-type accounts and not in bonds at this time? At the moment I'm in limited-term exempt bonds.
Car fund says nothing about the timeframe. If you are buying a new car in 5 - 7 years, limited term exempt bonds, as vangaurd calls them at about 2.5 years duration, are quite safe imho. But a new car in 3 years? That sounds perfect for a 3 year CD. Personally, I would not really worry about a car fund at all. Instead, I would have that kind of buffer in my E fund at all times and invest everything else with a 20+ year horizon.