aaplhpq wrote:Bumping this thread up. I'm also considering switching from VMLUX to CDs - especially in the light of the 3% PenFed CD.
However, my marginal tax is >50%, and taxes will eat up a lot of the CD returns
It seems like the decision would need to consider the probability that you would need to withdraw the funding in the next couple years. If the probability is low, than the CD's seem to offer the most bang for the buck, given the SEC yield of 0.85% for VMLUX. On the other hand, if the probability is also low for withdrawing the funds for 5+ years, then VG Intermediate TE looks competitive in your case, with a SEC yield of 2.36%. Or even VG Long Term TE (not all that long term with a duration of 7.6 years) with a SEC yield of 3.47%.