SGOV

P1um

This is a controversial take, don't you think? Sure, if your money is in bonds, SGOV, etc. you can consider it paid off. If your money is in volatile/high beta stocks like ASTS, no, tomorrow isn't guaranteed. Just look at April it was $20. If your money is mostly in the S&P, I mean, I'm not saying it will happen but if we see a 30% drop, you technically can't pay it off anymore. BUT your point is valid if your investments or overall liquidity are greatly superior to your debt. Not sure what kind of ratio that would require, say you have 200k on your mortgage and your investments are worth 300k (again, it depends on the amount of volatile vs safe investments), then you are fine to say you are "debt free".

Human-Ruin-9285

Short squeeze on SGOV inbound 😆

jonnycoder4005

800 million in TIPS 100 million SP500 100 million in SGOV - live off this

Own_Profession410

how have more people not mentioned the massive dry powder stack this guy sitting on in SGOV…

raiyan586

Thank you! My emergency fund is currently in SGOV. I was wondering if it would be smart to put remaining savings moving forward into something like VBIAX, which is 60% equity and 40% bonds.

No-Acanthisitta7930

Like literally just throw it all into SGOV or something, wtf are you doing putting it ALL in gold, jesus

_galaga_

If you’re saving up for something you want to be sure the money is there when you need it so the volatility of equities are out. You’re on the right track with the t bill ETF. Depending on where you live you might consider something like SGOV to avoid state income tax while your money is parked.

anywhoaroundhere

Great job covering 125% of known college costs with SGOV (especially if you live in a state with income tax). Chasing potential growth with a small % of capital seems appropriate provided you have an exit strategy.

SirGlass

>When that account gets to $100k can I just take it out and use it? Yes >Should I be putting my money for a house in a different account? I have a HYSA but the returns on it are only like 3.5% (Amex) so I try not to use that one, thanks. You can use a brokerage account as a savings account, it depends on what you invest the money into. You could invest it into a money market fund or some ultra short bond fund (VBIL/SGOV) and those will effectively act like a HYSA, meaning no real losses and some lower but somewhat guaranteed return Or you could invest in some high risk investment that could gain 100% but could also lose everything So saving in a brokerage account isn't good or bad, its entirely what you buy in that brokerage account. For anything under 5 years I would simply do something like VBIL or SGOV

UltraBonerFartLord

Doesn't SGOV kick off like 3%? I guess if you dumped enough money into that you'd have some nice passive income with some decent tax advantages

z3no123

This is not regarded. Actually knows how to park money in SGOV after huge gains. You do not belong here.

JeanSneaux

Correct! When I say cash that basically means SGOV. I’m long term bullish on space so that’s where I’ll be looking for opportunities.

IAmA_Kitty_AMA

SGOV for the tax benefit or bonds to avoid taxable events on a longer timeline. That said SP500 will likely beat the 3-4% of safer investments

NicheMath

$SGOV

wentwj

you don’t, but I’m not sure what you’re not getting. In short your first “interest” payment from SGOV will be larger than what it should be which will make it look like the share is at a loss. Assuming same interest: Your $100 investment in a saving account after the first half month pays $0.50 in interest for a total of $100.50 Your $100 investment in SGOV after the first half month pays $1.00 in dividends, the share price becomes $99.50 for a total of $100.50 but a reported loss of $0.50 on SGOV As long as the SGOV yield is equivalent to the savings account it doesn’t matter when you enter. You may see a loss unless you buy right after dividend but the dividend itself includes what the loss is plus your actual interest. In short a dividend payment will always pay out a month of interest, hence why your share price may show a small loss but you were overpaid that interest in the form of a dividend. You do not lose money in SGOV in any scenario

Ataxia72

I am comparing SGOV to a money market account that pays out interest but also keeps principal unchanged. It seems to me that if I sell when share price is lower, I lose money in comparison to if it was held in money market.  

OhBenjaminFranklin

Thanks for the suggestion, that's definitely better than what SGOV is paying now.

Heyhayheigh

Why do you have a short time horizon? Your view of money is wrong. If you truly knew the money was less than 5 years you would use SGOV. If you automate your income and DCA on auto weekly basis in VOO and liquidate only for large expenses, that would be fine. If you stacked 30k, it is because you weren’t automated.

ratedsar

Did you place a limit order on SGOV at precisely the current price and then not wait until the dividend (it reset back below the limit order)?

Kachowxboxdad

Look up FLTR - not the same as SGOV but I’ll be putting some money there soon

BagHoldersOfAmerica

There is no replacement without getting into higher risk bonds like municipal, it's why SGOV is so popular

OhBenjaminFranklin

Ideally the same risk level as SGOV. I had some shares of a corporate bond fund that dropped last April and don't want a repeat of that.

OhBenjaminFranklin

Anyone know an alternative to SGOV with a higher yield?

Easik

I do SGOV in my tIRA and VOO for rIRA. The logic is I'm trying to preserve wealth in my tIRA while matching or beating inflation. The rIRA is VOO because I'm good with the risk and want the most growth in a tax free account. Also have the 24k a year in the 401k, so that can do whatever in the retirement dated mutual fund. I'll move tIRA into SCHD when SGOV yields drop. I'm sure I could get a better risk adjusted return in my tIRA, but I sleep better with this diversification across my 3 accounts. P.s. I'm stealing your abbreviations and using them going forward / doing it for Roth too.

wentwj

No… You buy SGOV at a price, the price will go up until a dividend is paid. When a dividend is paid the price will go down but you earned a dividend equal to the amount it went down. Your broker will show your shares are at a loss because you’ve been paid a dividend. The only situation you lose money in sgov is for the half a day if you buy at the ask and it reports the price as the bid, which the spread is generally always one cent.

Ataxia72

I use SGOV as a cash substitute to wait for dips to buy equities. With SGOV, if I sell at 100.00, would I lose money and have to wait until it comes back to 100.50 to break even?

taynt3d

You were actually trading. SGOV is an ETF that trades exactly like a stock.

Khantahr

What do you mean by, "just SGOV?" SGOV is an ETF, exactly the same as every other ETF as far as placing trades is concerned. It sounds like you placed the trade incorrectly, and switching brokerages isn't going to protect you against that. You haven't told us what X or Y were either (that the support agent told you). Since it was SGOV, I'm going to guess that you placed a limit order with the wrong price, maybe the bid price instead of the ask, it didn't fill, and cancelled itself at the end of the day.

sunnbeta

So you tried to buy it as a price SGOV was at, but the order didn’t go through? What did it show under order status? 

AWright692

I average around 40-50% and when I have extra I’ll add that in as well. I keep about a month’s income in saving and then hold several months worth of my salary in SGOV just in case.

Low_Masterpiece1560

It does not matter how much you "love" or "trust" your adviser.  The relevant question is, how much value do they add? How does the performance and risk profile of your adviser-managed portfolio compare to something simple like: 60% broad stock ETF (VOO, VTI etc) 40% t-bill ETF (SGOV, VBIL etc) --- OR --- 60% broad stock ETF 20% t-bill ETF  20% gold ETF (SGOL, IAU, IAUM etc) PS: I outgrew my adviser five minutes after I read one thin little book twenty years ago: "Fail Safe Investing" by Harry Browne.

Kindly-Artichoke6569

The price drop is a mechanical ex-dividend adjustment. You haven't lost capital. SGOV accrues interest in its price, then sheds that value during the payout. So, your total return remains intact. Because the distribution replaces the price decline, it mirrors a bank credit. Which provides the same economic outcome as a deposit. Since the 1970s, this has defined professional cash management.

Tonkatte

Very helpful, and you could be right. Honestly I wasn’t paying attention to a lot of the details I’d have been if I was ‘actually’ trading, so you could be right. ‘Cause you know, it’s just SGOV… That doesn’t explain the lack of notice, or the poor rep response, but good suggestions, ty!

Tonkatte

I appreciate all the feedback and insights. I’ve been waiting to get others ideas so I can batch-respond. So here I go.. *User error: Quite possibly. If I was a more experienced trader, their interface may have been more self-apparent. Either I’m not experienced enough, or their interface requires a degree of knowledge that I haven’t learned yet. I started with penny stocks 40+ years ago, and am more of a FIRE/Boglehead investor now, but maybe I still don’t have the right vocabulary. Which isn’t a good sign for me using Schwab. *Explain X vs Y reasons for failed SGOV purchase: I’d love to explain it, but I can’t. Rep said X and it made no sense at all. Even his words were screwy. When someone says “probably” as part of their explanation, that tells me they themselves don’t know. His Y explanation wasn’t any better. I have amongst other degrees an MBA. I can generally communicate with anyone, make my living doing so, but I’m also quick to pick up on ‘waffle words’. I know the reps first answer was BS because he changed it when I called him on it. His second answer wasn’t better, so I just decided that was enough. *What specific problem would be better resolved at a different brokerage? Well, all I know for sure was I had plenty of cash sitting in my account, placed an order, it wasn’t filled, I got no notice of the issue, and the rep’s explanation was inadequate and changed when I pushed him on it. So those are the experiences I’d like to see improved on at a different brokerage. I don’t want to constantly watch my simple trades, or have to call a rep to get nonsensical responses. It doesn’t seem like too much to ask that I be notified of an issue when trading, preferably with a clear explanation of what the problem was. *Trading SGOV should be straightforward and I’ve provided no details: Everything I know is here. And I agree, it should have been easy. The fact that I ran into multiple issues on one simple trade is extremely off-putting. It is precisely because it was such a simple and yet unsuccessful trade, with no clear notice or explanation, that I’m looking elsewhere.

taynt3d

Trading SGOV should be very straight forward, and you have provided no details as to what happened.

sunnbeta

Robinhood is notoriously bad when it comes to resolving problems. Non-existent customer service many layers deep and time zones away.  I’m not sure why OP would have these issues with Schwab, I had an account with TD for many years that converted to Schwab and it’s been fine, my SGOV orders place immediately. Sounds like they just don’t know how to place a buy order at a given price, or? Should take 5 mins to learn how this works with Schwab vs the hassle of changing brokerages. 

da6id

This is a good point. Even if you reinvest dividends for SGOV, Schwab at least shows it as a fake loss for me

justdaisukeyo

The main purpose of a box spread is to create a synthetic loan or bond. Investopedia has a good article on it. [https://www.investopedia.com/terms/b/boxspread.asp](https://www.investopedia.com/terms/b/boxspread.asp) I have some of my "liquid" or "cash" invested in BOXX. So far, it's working out great. BOXX goes up in value rather than disburse interest from bonds such as SGOV or VBIL. I am patiently waiting for the fallout from any tax issues.

Sorry-Tip-8120

Cash in MMF. Tbills SGOV ETF (ultra short Tbills, fixed rate). USFR (also ultra short Tbills like SGOV but with floating rates, so good if you worry about rising rates).

Inevitable_Pin7755

You’ve already done most of the hard stuff right. Emergency fund is solid, tax-advantaged accounts are maxed, and you’re not overcomplicating things. The VOO + VXUS split is fine and pretty standard. If anything, 15 percent international is a bit on the low side compared to global market weight, but it’s not wrong, especially if you’re more comfortable being US-heavy. The 30 percent in SGOV makes sense given you’re planning to buy a house in about 5 years. That part is basically acting as dry powder and volatility control. The only thing to think about is whether that 30 percent is meant to be truly “house money” or just ballast. If it’s for a down payment, you might want to mentally separate it and gradually increase the cash like allocation as the purchase gets closer. One thing I’d also consider is whether you actually need a taxable brokerage for more equities right now, given how much you’re already putting into tax-advantaged accounts. It’s fine to do, just be aware you’re adding some tax drag compared to stuffing more into Roth or mega backdoor space if available. Overall though, nothing here screams mistake. It’s boring, diversified, liquid where it needs to be, and aggressive enough for someone in their mid 20s. That’s usually a good sign.

leaning_on_a_wheel

30% SGOV only if you’re very risk averse. I would invest everything beyond your emergency fund in the stock market.

Iunatic

You should have seen this sub in April. Every other retard was boasting about the fall of America or how they had been sitting in SGOV the whole time. It was a time of free money but most people don't know how to actually buy low because they need others to think for them.

Skizm

SGOV

Various_Couple_764

Almost all investors have a cash account. And most of the time it is in bank or taxable brokerage account. Partially for emergencies and pratially to help handle the big unexpected bill. But that said the cash account is the first step in the a taxable account. A emergency cash fund won't last long is you loose your job in recession. It could take form than a year to find a new job. FPassive income is better because the money will not run out. A fund like CLOZ 8% will pay a dividend (passive income. It will take time to build up the money in CLOZ to get meaningful passive income from it. If you don't need the passive income simply reinvest the funds. Or use the money to fund your Roth account or pay monthly bills. But it things go bad turn off any automatic dividend reinvestments. The dividends will then show up as a cash depoist into your money market account. I realize this in my 50s and took some excess growth I had in a taxable account and built up pasive income of 5K a month and retired. I am currently suing the passive until my retirment account become available. Some People use SGOV instead of CLOZ. Others may use riskier funds like PBDC 9% yeid, EMO 9%, ARDC 9% UTF 7% or UTG 6.3%. Other other will use covered call bunds like BTCI, QQQI, and SPYI.

markgriz

I keep a couple months expenses in a HYSA. 6 months worth in a 4 week T-bill ladder, though I think SGOV would be almost as good

YouAreCorrectSirYes

SGOV

FrankDrebinOnReddit

No, he asked if he should. And the answer is he should not unless this money is extra beyond the emergency fund. He should open a brokerage account and buy SGOV or MMFs.

Sugamaballz69

SGOV is 3.76% not 4.1%

justanotherstranger2

SGOV

MaybeTheDoctor

This seems to be the only valid answer here. OPs friend should consider with how short notice he would need the money back should shit come to shove. Of “quick” like within a week, put it into a money market fund or SGOV as they are low risk high liquidity. If longer horizons like years or retirement saving a broad market or target date fund as long as he can resist panic sell on dips. Panic sell is how most people lose money in investments.

Firebird5488

For emergency cash (5 months living expense if you have risk of getting laid off) below to get extra yield off them. Ally 3.3% with state tax on interest. Fidelity SPAXX (core money market fund) 3.62% instant access and about 52% of interest is state tax free. SGOV is currently 4.1% with little to no state tax. Would take a day or two to sell and access compared to traditional savings account. All 3 yields go down as interest rate gets cut. Yield calculator if your state has tax. [https://digital.fidelity.com/prgw/digital/taxyieldcalc/](https://digital.fidelity.com/prgw/digital/taxyieldcalc/)

FrankDrebinOnReddit

I have a Fidelity cash management account and buy 2/3 SGOV (0-3 month t-bill ETF) and 1/3 money market funds (for the fast access).

jnads

SGOV holds very short duration bonds, only 13 week bonds and they're bought in rotating tranches so 1/3 matures every 5 weeks. So if the fund dips, all you have to do is wait and then fund will right side as the bonds mature. The only way SGOV dies is in a hyperinflation scenario where people are literally trying to stop saving money.

Masked-Redditor

No actually that guy was right. You can't lose money if you held the underlying bond yourself. But a bond ETF works slightly differently than that. \> it’s possible to lose on BIL and SGOV if interest rates crash or move quickly. I said sure ... Given that you don't get basic facts about the relationship between a bond's secondary market price and interest rate, I also wouldn't bother trying to explain it to you. (FYI, it can happen in interest rate *spike*, not *crash*).

rithsleeper

Some guy who said he was a financial advisor once told me it’s possible to lose on BIL and SGOV if interest rates crash or move quickly. I said sure until you hold for 3 months time. Then it will break even ALWAYS. He still instead I’m stupid and he couldn’t be bothered to take the time to explain things to me….. It’s a 3 month treasury. You can’t lose money unless the us gov stops paying their debt.

Artistic-Western6342

The price drop is a mechanical reset. When SGOV goes ex-dividend, the accumulated interest moves from the share price into your cash account. Because the fund holds ultra-short Treasuries, your principal is shielded from the volatility seen in the 1994 bond rout. Which means your total return is intact; you’re simply seeing the internal accounting of a bank ledger made public.

Siks10

If you need the money in 3-5 years, you should keep them in something that doesn't risk losing value, like SGOV

Various_Couple_764

The drop went hey pay teh dividend is small and insignificant. So don't worry about it. But like all funds traded on the market it can drop in a market crash. When a market crash occurred rational buy and sell stops and panic selling takes over SGOV can also see a drop in share price. When peoplebanic sell they sell everything including good reliable funds like SGOV see a share price drop. And if you selll when there is a panic sell off you could loose some money. How much is impossible to know.

azure275

Oh no! My \~$100 a share SGOV dropped 20 cents (0.02%) I am now screwed! That 0.02% really cuts into my 4.16% yield after all Welcome to the world of NAV and why ETFs don't work like money markets. There's a specific pattern going on that always evens out

wentwj

To make this simpler to understand, lets say SGOV went from $100 to $101 and paid a $1 dividend. you buy one share at $100.50, so you invested $100.50 total. The price rises to $101.00 and then a $1 dividend is paid. You now have $1 in cash from the dividend, plus the share of SGOV worth $100, for a total value of $101. Your brokerage will show your SGOV share as being a $0.50 loss as SGOV is now worth $100 when you paid $100.50, though it is obvious through the exercise you did not lose money and are up.

Lucky_Platypus341

No. Look at the 1 year trend. See how it marches up and then drops like a sawtooth wave? The price includes the dividends earned since the last distribution (monthly except there are 2x in Dec and none in Jan). Your bank shows your balance then pays interest say monthly based on your "average daily balance." So, if you put $100 into the bank, then took it out in the middle of the month, you would have to wait to the end of the month to get your half-month of interest. When you sell SGOV, you IMMEDIATELY receive your partial month dividend as part of the sales price -- no waiting! The price drops when the dividend is paid out to current eft holders. In the same way, if you buy SGOV in the middle of the month, you will pay a higher price to account for the dividend you didn't earn (paid to seller) since you will receive the whole month's dividend later. Tl/dr: it's just a different bookkeeping method that is actually cleaner than bank interest payments and you don't have to wait (since you get your part of the dividend when you sell). The difference in buy/sell price may mean that up to a month of dividend is treated as capital gains instead of as a dividend.

Consistent-Pin-446

SGOV all of it, aggressively DCA into VTI

GaylrdFocker

SGOV is mostly (maybe fully) state tax exempt. Your money market can be partially too so depends which it is.

ra__account

I pay less on margin on some accounts than SGOV yields.... *There's lots of ways of getting leverage that dont involve margin accounts.* I never said it was the only way; you still haven't explained why a high net worth investor wouldn't use it. *High net worth individuals dont trade on margin. That's a fact. Period.* That is a stupid statement. High net worth is generally defined as $1 million+ liquid and there's *a lot* of people that meet that definition. There's basically nothing every one of those people have in common, from investing or not with margin or liking bubble gum ice cream that is a binary true or false other than silly things like saying that no high net worth individual has 18 arms. I'm an accredited investor from both income and net worth and as a real world example from this week, bought D on margin when the stupid wind farm news dropped and sold it the next day for a 3.5% profit. Oh no, I'll pay 6.849315068493151e-5% interest on that! Margin is just a secured loan. You can shoot yourself in the foot with it if you're foolish, but just like not paying down a mortgage early if you have a low interest rate, as long as your long term gains are higher than your long term interest (and again, you're strategic enough to avoid a margin call), it's a way to turn your existing money into even more money.

Different-Volume-129

It’s in SGOV

OnlyKey5675

VOO is the index fund I've invested in over the years. So I will likely stick with that. Is SGOV a better option than a money market account?

GuyNext

Index funds ETF are risky but if you’ve plan over 5 more years then yes but all money. Treasury ETF like USFR, TFLO, SHV, BIL, SGOV are good. Bond ETF ICSH, VUSB, PULS are good.

Heyhayheigh

Have you ever had investments before? 250k lump sum is an advanced move. You will see volatility. SGOV two years expenses and only sell when you have an urgent expense to pay for. Best of luck.

WackyBeachJustice

I have both. Both buy VT and SGOV in a couple of clicks.

cripky

Sometimes if u up bigly best to quit while ahead and put gains in SGOV or something Like a failsafe for you own retarded greed

Emotional-Power-7242

If it may potentially be needed as an emergency fund then SGOV is the only reasonable option.

gryffon5147

I have around 10% is SGOV. I'd like a meaningful emergency fund.

VegasBjorne1

If one is an adherent of Capital Asset Pricing Model (CAPM), then the optimal risk-reward will include a mix of risk-free Treasury bills (very close to cash) and a collection of diversified stocks (S&P 500). SGOV ETF would provide near immediate liquidity and extremely low risk with very modest returns. It is common for investment portfolios to have a 60/40 mix (or greater) between stocks/bonds as to reduce the portfolio volatility. This is especially true when approaching a time horizon when funds are needed (college tuition, retirement, home purchase, etc.).

BobtheChemist

If you are working and young, it makes sense to only hold a small amount of cash for emergencies. If you are older and either nearing retirement or retired, then it makes sense to keep some amount of your savings in either cash, bonds, or other liquid form that will not likely crash in value if the market has a crash. That way you will not have to sell stocks in a down turn, thus avoiding locking in large losses. During covid, I have some bonds, and when my stocks crashed 30-40%, I was able to sell some bonds at a 10-20% gain, and move that money to stocks, where it rebounded a year later and brough me a profit. Had I been retired, I would have done less, other than to sell bonds or SGOV in order to get my withdraws funded. That way I would not have to sell stocks at a loss.

Calm_Situation_1131

Just buy $SGOV. No deposits needed.

Emotional-Power-7242

1-3 year horizon is not long enough to hold any stocks. SGOV with 4% yeild, or you could maybe try to eek out 5% or something with slightly riskier corporate bonds.

Heyhayheigh

SGOV for 1-3 year horizon.

Junior-Appointment93

True. But it’s limiting your losses. Keeping your winnings and not using them to gamble. Started using my own rules 3 weeks ago. Wait 2-2.5 hours after market opens. Check 0DTE options along with RSI. That is for Monday and Wednesday. Friday I have a watch list of stocks. See what pays a decent premium and place a credit spread based on that. More wins than losses so far. Just like a casino your are always going to lose a few hands. That’s where the $20-$100 comes in. Only use what you can afford to lose safely each week or month. SGOV keeps its value and pays a monthly dividend. So your winnings will grow safely with that.

vansterdam_city

get your options permissions and sell cash secured puts at a price you like while parking the cash in TBIL / SGOV. You can get 5-8% while you wait.

Various_Couple_764

Have you considered dividends. Overall many of the companes BRK invest in are dividend producing companes know for their consistent dividend cash payments to investors. SGOV pays a dividend of about4%. You could easily get double that with funds like ARDC 9% yield, PBDC 9%,EMO 9%, CLOZ 8%, PFFA 8% you simply buy and hold the fund. And dividend are deposited into your acount. 5 5.

Big_Eye_3908

Don’t put it in spy because if the stocks crash enough that they all get assigned in a black swan event, then SPY will be crashing along with it. You’ll end up getting assigned $200k in stocks against $80, $70 or $60k of cash collateral, sweating that the rest of your portfolio keeps you above water enough that you don’t get liquidated, but that will be down as well. Keep your cash in a money market or SGOV - short term treasuries, which pays a decent monthly yield. Your scenario appears to take on a bit less risk on the surface, but in reality you are more than doubling the risk to your portfolio in the case of an adverse event, which will happen eventually. Risk management is all about getting through to the other side without being wiped out. Always think about the bad thing happening. If the market falls 20, 30, , 40%, what would happen in your scenario? Having said that, choosing great stocks, selling puts at 1.5-.2 delta, and using margin to sell additional puts for another 20% - 20k, while the cash is in SGOV earning around 4% should probably be ok. I’ve done it in the past but began unwinding that leverage this summer when we hit all time highs. I now have a nice pile of cash and only sell puts at strikes where I know that I will want to back up the truck. The only time that I’ve been using margin these days is when I see a screaming buy opportunity. Personally, I’m waiting to see how January goes. There could be a pullback with people taking their large gains after the first of the year. If we have a more significant Santa clause rally I’ll probably sell into it with some of my stocks and look for opportunities to buy back in later.

Heyhayheigh

When did you panic sell? Feb-March? Where did the SGOV money come from? For how long has it been there??

samuelj264

Maybe NOBL and some BIL or SGOV. A 70/30 or 60/40 blend. NOBL is dividend aristocrats, companies that have not cut dividends in decades. It’s not apples to apples Buffett, but similar

Heyhayheigh

If you are truly a baby investor, you should buy VOO on an auto weekly basis. Whatever you can afford. Then work to increase that weekly. Then only sell if you have an urgent expense to pay for. SGOV for emergency funds and large expenses to be paid for in one year or less. What you’re suggesting is a more balanced approach. And that’s great, but I’ve never seen someone new do a balanced approach with max effort. I have seen noobs get VOO and chill right (tons get it wrong too mind you). How do I know this balanced approach wasn’t max effort? Because they set it up 10 years ago and never progressed. They invested $100/week 10 years ago, doing the same now. I have seen people increase their VOO and chill. You will tinker with allocations, and play panic sell games with “rebalancing” and other fancy rationalizations. The fear with VOO and chill is that you might panic sell. The fear with balanced approach is that you might not progress due to having a complicated setup. A balanced approach is good to help with emotions during volatility. Volatility is a feature to the auto investor. You might not truly grasp the things I’m saying. And that’s ok. Rome wasn’t built in a day. Best of luck either way!!

brianborchers

SGOV is the ticker symbol for a particular ETF that holds 0 to 3 month treasuries. There are similar ETFs and mutual funds from all of the low cost brokers.

BagPristine4040

Silly question, which SGOV do you recommend?

brianborchers

It depends on your HYSA but SGOV should be competitive.

Aggressive-Donkey-10

If you find yourself in a hole, step one is stop digging. You don't have to keep digging/putting your paycheck into the sp500 at CAPE Shiller of 40.5, you could 1) put it into VXUS with a PE of about 15 and easily own 6000 foreign companies 2) into 100% safe cash - SGOV at 3.85% with no risk of any capital loss (Buffett has been doing this for 4 years now, with 382 Billion in T Bills just waiting for a crash - he is an ok investor) 3) a collection of BDCs/mREITs/CEFs earning around 10-11% 4) gold/silver ETFs which often outperform in recession or stagflation 5) real estate syndications - get 15-25% checkout passive pockets youtube channel, and biggerpockets website 6) Oil/Gas MLPs, like ET/EPD/MLPX 8-10% dividend yields alone about 100 other things that are easy to invest in and not the sp500 :)

BagPristine4040

Will SGOV give you the same amount (percentage) of money that HYSA is offering?

Slartibartfastthe2nd

SGOV is a short term U.S. treasury ETF that is as 'safe' as anything, pays better than a high yield savings acct, and is completely liquid (easy to get your money if/when you need it). The dividends are also tax sheltered. IMO, [SGOV](https://finance.yahoo.com/quote/SGOV/) is the 'best' place currently to keep emergency funds.

Sad-Debt789

Yup, was looking for this answer and the one about this being personal finance. SGOV is around 3.85% right now? Plus, no state tax on dividends for most states. HYSA still gets taxed on on gains. Dude knows not to time the marjet but still tries to time the market lolol.

brianborchers

Do you live in a state with income tax? If so, you might consider moving your long term emergency fund from a HYSA to a short term treasury fund like SGOV. This should get about the same interest rate without the state income tax.

Fantastic-Ice-1402

How about SGOV instead for your savings? There was a huge correction as recently as 2022 where SPY lost a lot and took a few years to recover. That could happen again.

Heyhayheigh

Your 401k should be set to lowest internal sp500 fund and move on with your day. You could do the same with normal money too. But by your stock picks you obviously are ok with risk and volatility, so Nasdaq is fine. Everyone could literally run on SGOV for emergency fund and either VOO or QQQM for risk on. But I doubt they wouldn’t panic sell. It’s easier when the money is small. Once the money gets big, the urge to panic sell gets even greater. You will learn. Or you won’t. World moves on.

BillBob13

I don't understand the hate here, the #1 rule in incesting is to not lose money. OP, to answer your question, bonds. An ETF like SGOV. You get ~4% apy as a monthly dividend, you won't beat the market (in terms of historical returns), but you won't lose anything if a 2001 repeat happens

TJMBeav

$SGOV till the reset then do both

Lanaloki

If you don’t think SGOV is better than holding cash, you have no clue what you’re talking about. And you never answered OP’s question.

Low-Win-6691

How? Interest rates will go down and cost of living will go up. SGOV seems like a terrible choice

Lanaloki

If they are holding their cash in SGOV then they are mostly protected from value erosion due to inflation.

MaxPaynesRxDrugPlan

Thanks. I'm a new SGOV investor and was wondering as well.