Cohousing-L Mailing List: Re: HOA reserves investment plan

[David Mandel (dlmandel]

Ours are invested primarily in high grade, insured municipal bonds and municipal
bond mutual funds. These are state and federal tax free (thus avoiding the 40%
we'd be paying), highly secure, though not absolutely. A certain amount is kept
in  a double-tax-free money market fund for ready access. Some thought was given
to timing -- i.e. bond maturity around when we'll need to replace roofs, but
it's imprecise, of course. We decided to steer completely clear of stocks.
David, Southside Park.

"Sheehan, Chris" wrote:

> >From Chris Sheehan @ Sonora Cohousing in Tucson,
>
> What are other communities in the US doing with there long term reserves for
> major structural replacements (roofing the whole community (50 years for us
> since we have metal roofs), swimming pool replacement, painting, parking
> resurfacing, etc...) ?  We are interested in maximizing our return
> conservatively and incurring a minimum of federal taxes. Some options are -
> Vanguard S&P 500 index fund or tax deferred investments.  Also curious about
> which types of investments are used for various lengths of time (very short
> term liquid, medium term (5-10 years), long term (10+ years).  Any advice on
> this and HOA dues investment or taxes in general would be greatly
> appreciated (even if it is boring).
>
> Chris Sheehan
>
> Sonora Cohousing is close to having our straw bale common house finished (at
> least ready for furnishings and Kitchen installation), our pool should be
> ready in 2 or 3 weeks (need it now!), our botanical garden-like landscaping
> is very close to completion, our workshop (to be built w/ sweat equity)
> plans are going to the city today and the kids are scurrying about like (you
> choose) 1) cute munchkins 2) feral pigs.  I choose 1) as one of those
> munchkins is mine.
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