2/28    What's a good "next step up" from high-yield (4-5%) savings accounts
        if I want something to invest, say, $50k in and still keep it fairly
        liquid and still have little to no risk (i.e. I'm OK with !FDIC if
        it's a biggish institution and not too likely to fold).  By "fairly
        liquid" I mean no more than a year lock-in.
        \_ I have some I-bonds that are pulling in 6-7% a year.  I bought
           those a few years ago though, and I think they've been dropping
           the yield in recent years.
           the yield in recent years.  Oh, and they're fed tax free too.
           http://www.treasurydirect.gov/indiv/products/ibonds_glance.htm
                \_ Don't you have to pay taxes when they adjust the principal?
                   \_ Woops.  I got it the other way around.  No state tax,
                      and fed tax deferred until either bond redeemed or
                      annually--your choice--and not on adjusting the principal.
                   \_ No, that is for TIPS.
           \_ I bonds deduct 3 months interest if you sell before 5 years,
              so that's a minus for the op since he wants less than 1 year
              lock-in.
        \_ probably more risk than you would like but I like FAX (asian bonds
           close end fund) recommended by Bill Gross (king of bonds).  It
           yields 6.87% and is currently 4.68% below its net asset value.
           \_ 6.87 taxable w/ risk vs. 6.73 state-tax free no-risk (I Bond)..
              meh.  What does "4.68% below..." mean?
              \_ well, I Bond yield is inflation dependent and may go down,
                 so it is not risk free.  4.68% below nav means that the
                 fund is trading at a value that is 4.68% below the total
                 value of the bonds it holds.  of course FAX also has
                 exchange rates risk.  you should probably only buy it
                 if you think the dollar is going to fall, or you want
                 to diversify your currency risks.  I personally think
                 the dollar will fall, so I especially like FAX.  In the
                 scenario that FAX returns to NAV, and dollar falls, I
                 could get 15% return.
                   - I bond holder who suggested I bonds on the motd
                     a few months ago.
           \_ I'm a big fan of FAX too.  I'm curious though, where are you
                getting the "*currently* 4.68% below its net asset value"?
                I know they mention it periodically, but is there some way
                to check at any given point (they have way too many holdings
                to calculate it yourself) -crebbs
                \_ http://www.etfconnect.com  it's down to 4.35% now.  I recently
                   found out that IFN is 30% above NAV.  I am going to sell
                   IFN and get MINDX or maybe IBN (ICICI) to stay exposed
                   to India.  IIF is also 15-20% above NAV so it's not much
                   help.
                   \_ Funny, I was just yesterday showing a buddy of mine
                      a comment that IFN was 30% over NAV and that he should
                      short it.  How do they manage a 9% dividend at that
                      pemium? are they really holding assest that pay well
                      over 9% divedends on average??  Anyway, thanks for the
                      over 9% dividends on average??  Anyway, thanks for the
                      link.  Email me and tell me who you are if you don't
                      mind being bugged once in a while about this kind of
                      thing.  -crebbs
                      \_ feel free.  good for me to have someone to bounce
                         one's investment ideas off too.  I have a rather
                         patchy record with shorting.  I recently tried
                         shorting GM; it promptly appreciated 20% but
                         later fell back, so I am now even.  Do you think
                         I should be glad I didn't lose money and run, or
                         keep the short?  - ecchang
                         \_I would be terrified of shorting GM.  The funds
                           seem to be sticking with them.  The gubmnt could
                           come to their rescue (again).  Despite their
                           dire straights and massive debt, I think that's
                           a scary play.  But I pretty much only take
                           short positions in combo with long.  For exmple
                           I shorted 3dfx and went long with NVDA back in
                           the day. </brag> -crebbs
                           \_ my thinking with regard to GM is that there
                              is something fundamentally wrong with GM
                              that cannot be fixed without going into
                              bankruptcy.  yes there may be short term
                              gains but it won't last.  question is
                              whether one can hold through those gains.
                              But you may be right, the risks are pretty
                              high, especially given how far GM has
                              fallen already.
                              NVDA is another of my bad shorts.  I shorted
                              it around 21 and it went up to 26 at which
                              point, I gave up.  After I gave up, it
                              dropped all the way to 10.  This was in
                              mid 2004, I think, when ATI is kicking
                              NVDA's butt when NVDA is having production
                              and heat issues with their chips.  What's
                              worse is that I then missed NVDA's runup
                              from 10 to the current 48.  ugh!
                                                            - ecchang
        \_ How about T-Bills?  If I read this right, you can go in for a
           month and make > 4% state-tax free?  Am I reading that wrong?
           What's the catch?  -op