Cash bucket options (short term needs). CD tents, Bond tents etc. dynamic situation.

[Tangler]

T Bills (1 month) around 2.8% right now... comes with tax advantages. Am i missing something? Seems way better than a CD right now

I already bought the CDs a few weeks ago. At the time they were yielding slightly higher than T-bills. Dynamic situation. Buy whatever looks good.

My HY savings account with sofi also went up to 1.80% (from 1.25%) and I am happy with that.

I am basically doing two things right now:

1. HY savings account (totally liquid, growing this)

2. Investing in stock index funds (we are still down >15% YTD) (stocks for the long run)

I will look at CDs and short term bonds again in a few weeks......seems like interest rates are rising and might be worth just sitting tight and seeing were things go before locking in.

Does this seem reasonable?

[IRdoc]

Reasonable? Yes, absolutely. If those are no-penalty CDs, then I would consider switching, especially if 1 month T bills stay that high. Can be used for E fund, as credit card can cover 1 month, until you can cash those in and pay CC if push came to shove. Different for 3 month and longer T bills though.

[jacoavlu]

4 week T bills are not 2.8%. more like 2.1%.

one downside of T bills vs a CD is that if T bill rates go down you might wish you'd bought the CD. better to compare CD rate to T bill or T bond rate of similar maturity

[xraygoggles]

T Bills (1 month) around 2.8% right now... comes with tax advantages. Am i missing something? Seems way better than a CD right now

If you have cash doing nothing, then yes, putting it in T-bills is not a bad option, for safekeeping.

This site updates almost daily with the most recent yields. Yesterday the 1 month was at 2.15%

https://home.treasury.gov/resource-c...e_month=202207

[IRdoc]

4 week T bills are not 2.8%. more like 2.1%.

one downside of T bills vs a CD is that if T bill rates go down you might wish you'd bought the CD. better to compare CD rate to T bill or T bond rate of similar maturity

Agree... I swear Vanguard was showing those rates pre-market today... alas, 2.1% or so. I have loaded up on the 6 months

[99mkw]

This doesn't have to do with short-term cash equivalents, but if the goal is immunizing against SORR, have you considered having some AA in private real estate? In recent times, it seems like a more useful diversifier than bonds (especially if you don't already have bonds). Having a real estate debt fund in a self-directed Roth has been my best investment over the past year, and some type of evergreen housing fund in your taxable space can provide some of the tax-advantaged return of direct real estate without the landlord headaches.

[Tangler]

This doesn't have to do with short-term cash equivalents, but if the goal is immunizing against SORR, have you considered having some AA in private real estate? In recent times, it seems like a more useful diversifier than bonds (especially if you don't already have bonds). Having a real estate debt fund in a self-directed Roth has been my best investment over the past year, and some type of evergreen housing fund in your taxable space can provide some of the tax-advantaged return of direct real estate without the landlord headaches.

No thanks. These do not strike me as low risk or simple to understand / evaluate.