Hey Spyder, have you considered opening a tax-exempt money market fund with Vanguard? (I'm sure Fidelity has one, too, I'm just not as familiar with their products) They invest in a variety of stable short-term municipal funds to keep their share price fixed at $1. All the interest is considered tax-exempt as it is invested in municipalities. Though the quoted yield at face-value may appear lower than the high-interest accounts of ING, Emigrant, etc., the taxable-equivalent yield tends to work out higher for those in the higher tax brackets (which I'd imagine you're in). If I'm not mistaken, you practice in California....Vanguard has a specific California tax-exempt money market fund for your state. If I'm wrong, you can use the general tax-exempt money market fund they have available. By having your yield remain non-taxable, you might have an easier time tax-harvesting deductions/losses at the end of the year to get to a lower marginal tax bracket.
Activeduty and/or ETF, do I have my info right on this? I've learned a lot from you guys and as I've told Activeduty, your advice/wisdom has done wonders for me already.