At today's intermediate term high grade bond fund and CD
yield rates, and based on //my// expectations for the future
(which may prove misplaced), I don't think there will be
much difference between your proposed CD ladder and the fund
for the next few years.

As for Treasuries (bills and notes, to be precise with the
vocabulary), you have to watch the auction results at
http://wwws.publicdebt.treas.gov/, among other sites, to
gage how bills and notes are doing vs. CDs. Generally, once
tax breaks on the treasuries are taken into account, their
rates should be very close. CDs and treasuries both have
about the same risk and offer the same maturities. The
market competition thus usually makes them yield (after
taxes) about the same.

You will pay no state taxes on the income from the treasury
bills and notes. You are correct about the taxes on CDs. If
your state tax bracket is X%, then to compare the two
(treasuries vs. CDs) the easiest thing to do is multiply the
CD interest rate by (1-X/100) and compare it to the treasury
rate.

My expectations are what the media is often reporting and
the Fed is "said to be" implying: Maybe one more Federal
Reserve Board interest yada rate increase on August 8, then
things will settle down, at least compared to the last
couple of years. You should google for others' opinions.

If you decide to go with the CD or treasury ladder, I
recommend waiting until the Fed Reserve Board's decision is
published on August 8 before taking action. I expect rates
to either go up or stay the same, not go down.

I just compared Vanguard's listings with Fidelity's listings
for CDs. Go Vanguard!

Per chance if you are ex-military or otherwise can affiliate
with USAA Federal Savings Bank, and have $10k or more to
stow away for 0 to six months, they have a fantastic offer
with their "Performance First Savings" account: 1% plus
their regular rate for the first six months, with withdrawal
of any part at any time without penalty, as long as a
minimum of $10k stays in the account. That's about a 5.6%
total right now.

The only dumb question is an unasked one, especially with
regard to something as important as one's finances.

Does it make sense to move money out of intermediate term bond funds to a
five year ladder of CD's and/or TBills? And can someone tell me how to
calculate which investment generates a better after-tax yield to a person
living in New York state? (But not NYC)

The CD's I looked up on Vanguard looked pretty attractive but there you pay
both Federal and State tax on that income, correct? (I haven't had a CD for
a lonnnnng time...I forgot)

BB