Personal Investments • 2-3 Time Horizon, 35% Marginal Tax Bracket?

I need to decide where to invest funds across the next 2-3 years to achieve liquidity towards the end of 2026:

- Each month I contribute $1,500 between now and Dec 2026 to this account
- In March of 2024, 2025 and 2026 I will contribute $20,000 to this account
- In May of 2024, 2025 and 2026 I will contribute $60,000-$80,000 into this account
- In Jul 2025 a $150,000 CD matures and will need to be reinvested
- In Nov 2025, a $150,000 CD CD matures and will need to be reinvested

We require liquidity by the end of 2026 at the latest with this money.

Exempt from 35% Federal Tax but subject to NJ 8.97% State Tax

Vanguard Municipal Money Market (VMSXX), ER 0.15%, 7-day SEC Yield 3.12% (4.80% Tax Equivalent)

iShares iBond ETF Municipal Bonds
IBMN (Dec 2025), ER 0.18%, avg yield to maturity 2.99% (4.60% Tax Equivalent)
IBMO (Dec 2026), ER 0.18%, avg yield to maturity 2.83% (4.35% Tax Equivalent)

Exempt from 8.97% NJ State Tax but subject to 35% Federal Tax

Vanguard Treasury Money Market (VUSXX), ER 0.09%, 7-day SEC Yield 5.29% (3.44% after tax)

iShares iBond ETF Nominal Treasury
IBTF (Dec 2025), ER 0.07%, avg yield to maturity 4.90% (3.19% after tax)
IBTG (Dec 2026), ER 0.07%, avg yield to maturity 4.57% (2.97% after tax)

iShares iBond ETF TIPS (no shadow income to pay)
IBIB (Oct 2025), ER 0.10%, real yield 2.64%
IBIC (Oct 2026), ER 0.10%, real yield 2.30%

Obviously, the two Vanguard money market 7-day SEC yields are interest rate sensitive and the iShares iBonds are not if held to their maturity date.

Statistics: Posted by iim7V7IM7 — Thu Feb 29, 2024 3:23 pm — Replies 10 — Views 1402

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