Dumping Muni Bond funds

[Nate tha\\\' Great]

Hi all,

I have about $50k tied up in tax-free municipal bond funds. The idea was that this would be beneficial to me since I was going to be in a high tax bracket. However, since my income will almost certainly be less this year than it was last year (thanks, UIGEA), I'm no longer in such a high tax bracket and it doesn't make as much sense to stay in the munis once the early withdraw period expires, which will happen in about a month.

So the question is what should I do with that $50K? For the sake of context, the solid majority of my remaining net worth is presently in equities, especially once you exclude my poker bankroll, and my hunch is that the markets are slightly overvalued. I'm tempted to stick like $15k in an index fund on ETRADE and put the rest in savings/CDs, bypassing bonds entirely, but I don't know if this is right.

thanks,
Nate

[Jeff W]

Can you hold bonds in a tax-deferred account instead?

As far as cash goes, I like Vanguard Admiral Treasury Money Market Fund.