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Reply to "Where to put $250k for 3+ years"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]ETA:^^^ I don’t buy or sell on the secondary market. I buy original issues at Fidelity and hold until term.[/quote] Why is holding to term better? Is it the difference of capital gains or tax as ordinary interest? [/quote] It’s not necessarily better. If interest rates rise, however, and you sell early, you’ll lose principal. If interest rates lower, you’ll sell higher. Holding to term, you don’t lose principle. I don’t know how it’s taxed. The yield is taxed as ordinary interest, but is state tax free.[/quote]
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