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

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  • #91
    Originally posted by IRdoc View Post
    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?

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    • #92
      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.

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      • #93
        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

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        • #94
          Originally posted by IRdoc View Post
          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

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          • #95
            Originally posted by jacoavlu View Post
            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

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            • #96
              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.

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              • #97
                Originally posted by 99mkw View Post
                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.
                Last edited by Tangler; 07-29-2022, 02:17 PM.

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