What to do with $50,000 now
Given the uncertain economic picture, you probably have a chunk of change squirreled away. Here's how to best use that cash.
Get a tax break
With many towns suffering, municipal bonds -- which aren't taxed by the feds -- pose a higher default risk than they once did. Reduce that risk by investing via a fund that holds high-quality issues.
Consider Vanguard Intermediate-TermTax-Exempt (VWITX): 95% of holdings are rated A or better. Its 12-month yield of 3.6% is the equivalent of 5.3% if you're in the 33% bracket. Live in a high-tax area? Because states don't tax munis inside their borders, you may get even better effective returns in a single-state fund.
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Last updated October 18 2010: 12:00 PM ET
