Moving money from mutual funds to CD in Vanguard

[srblanco7]

To be honest, I understand how CDs work, but I've never purchased treasury bonds. I like that CDs are locked into a rate so I know how much (or little) I will earn, but I also know I won't lose anything. I thought treasury bonds could fluctuate. Doesn't that mean they could potentially lose money?

I generally purchase new treasuries (on Vanguard it's labeled "auction" from what I recall) and hold them until they mature. As others have noted the earnings are exempt from State income tax. Treasuries pay a set rate and you will not lose money if you hold them to maturity. It's about as secure an investment as you can make.

[cypher1]

I have my retirement money in Vanguard, mostly in target retirement funds, but I also have about 50k in my taxable account (VMFXX I believe). I'm okay-ish (as much as one can be I suppose) with riding out the downturn and not touching my IRAs, which I won't start to tap for another 10 years, but the cash is money I will likely need over the next 3-7 years, so I need to make sure it's secure, even if it earns less. I'm wondering if I should move it into CDs so it will be secure. I was thinking of doing a maturity ladder so some will be available at different times if/when I need it, then I can just roll it into a new CD if I don't need it. I'd rather earn only a little interest than lose any of it.

I'm kind of in a similar scenario with a chunk of my cash in taxable VMFXX. While the core of my main EF is 40K (4 years worth) in Ibonds, with a goal to max out a minimum of 5 years worth to keep up with inflation for EF. I'm not against CD laddering or going with TIPs strategies for chasing growth, but really wanted simplicity of a "set it and forget it" for cash holdings on the next 5-7 years. Hence why I stuck with Ibonds.