SGOV
iShares® 0-3 Month Treasury Bond ETF
Mentions (24Hr)
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SGOV and TBIL, are there safe to invest as an alternative to Savings Accounts to preserve cash value and earn interest?
Offsetting Previous Losses While Continuing to Invest for the Future
Should I invest in treasury funds if no state income tax?
If I'm bullish on the future what's the point in holding VOO? Shouldn't I just get TQQQ and hold long term?
SGOV a good place to hold cash for liquidity?
Are SGOV or USFR still viable short term investing options for growing down payment?
Why do SGOV charts look like this and could the pattern be exploited?
Why does the graph of some bonds look like a sawtooth wave while others don't?
Treasury bills Vs. Money market Vs. CD’s Vs. SGOV Vs. HYSA Vs. Other alternatives. What’s the best way to park my short term cash?
Is it wise to use SGOV almost like a savings account?
SPX Gain. $SGOV & Rest time. Not trying to get caught in a technical bounce.
How to use T Bill ETFs as cash alternative inflation hedges? (SGOV, TFLO, USFR, etc.)
Taking a break from degening. Small PP gain. Hiding in $SGOV for the next 6 months until I can get my head back in the game
Why are the yields of NY muni money market funds so volatile?
What prevents dividend arbitrage with MFs like VMFXX?
Am I losing money to taxes in HYSA instead of treasury ETF/fund?
Beating directly holding S&P 500 by selling deep ITM puts?
Help me find a high yield ETF that I can sell/buy quickly
Parking Cash (Money Markets, Treasury Bills, Bond Funds, ETFs, etc.)
I'm going to break even soon, should i sell part of VTI and put it into SGOV?
Can someone explain the price move of short-term bond ETFs?
I am new to recurring investments. If I want to buy SGOV, does it matter what date I do it on?
Can buying/selling SGOV and USFR trigger a wash sale?
How do I find out the yield on $SGOV?
Options + Bonds ; brilliant original idea, or... boondoggle from hell?
Best Investment Without Actually Buying Treasuries? Am I wrong?
Are there any downsides to my plan to try to turn SGOV dividends into capital gains?
How will floating-rate treasury funds (USFR, TFLO) fare when interest rates start to fall?
Is there a way to make 4-5% with minimal risk without receiving dividends/interest? "Accumulating" SGOV?
If someone wants no regular pay outs but wants to avoid getting screwed by inflation with minimal risk, what do they do?
What is safer now for cash? Keep in Bank account (less than $250K) or T-Bills / SGOV / BIL?
How do fixed income instruments behave in case of a government shutdown?
Can someone help me understand the pros/cons of a bond ETF like SGOV in comparison to buying a treasury directly?
SGOV not reinvesting interest at a good price... Am I missing out on returns?
Are returns from treasury ETFs like SGOV and USFR state tax exempt just like regular treasuries ?
Let's talk about short-term debt securities...
What are some safe overnight bonds / ETFs that I can exit any day easily?
What are the different options for taking advantage of high interest rates?
I want a T-Bill. Are $VUSSX and $SGOV better options?
Table of Money Market Funds/ETF's or Ultra Short Term Funds/ETF's available on Merrill Edge
State Tax Exemptions on US Government Interest for Tax Return
Government Bond ETF - Taxes on Distributions?
T-bills: 3.29% apr for 3 month & is going up with rate hikes
Better Option than SGOV for collecting yield on leftover brokerage funds with near 0 rate risk?
Mentions
Put 25% into SGOV for taxes next April
Open a Fidelity account. Put some of that in SGOV for emergency fund. Then get in the habit of buying VOO auto and weekly. Start with what is comfortable. Then work to increase that weekly. Sell only when you have something urgent to pay for. Do that forever. That’s how personal finance works. Spend less, invest more auto. Sell only when there is something urgent to pay for. You will learn as you go. But do that first step today. Best of luck you will do great!!
How set are you on buying a house in ~18 months. If it is a firm plan, then you need to put the downpayment is safe assets like HYSA, or money market fund, or 3 month treasury bills (or SGOV which is an ETF that holds 3 months T bills). The advantage of treasuries is that you do not owe state income tax in the interest. Only if your timing of house buying is uncertain or flexible should you leave the money invested in the stock market. OTOH, if your house purchase is some indeterminate point in the future, then I would lean to staying invested in S&P500 or total US market ETF. You would be accepting the risk of a market downturn around the time you want to buy forcing you to delay the house purchase.
First I want to say l, that if you have any doubt or questions about using margin, then it’s better to be safe than sorry. I did something very similar. So there was a recent update that allows you to have multiple brokerage accounts. One can hold your cash and earn interest and the other can be setup with using the margin. I’m a gold member and also have my borrowing limit set to $1,000 and always keep $.01-.99 uninvested just to stay below the $1,000. As others have said, there is a risk to margin and you could receive a margin call. My $1,000 is put into SGOV which does not grow and yields a little under 4% in dividends. Relatively safer but low upside
I recently bought SGOV. Gets about 4% atm and can easily buy in my investment portfolio vs having to move cash around. Curious what others are doing.
Agree with what everyone saying about S&P being too risky for a 2-3 year timeframe. I’m saving up for some renovations and using SGOV ETF instead. It currently gets higher yield than my HYSA (I have one for easy liquidity but there’s less money than my SGOV investment).
Open a Fidelity account. Use SGOV instead of savings accounts/HYSA. Invest auto and weekly. Whatever you can afford. Yes Roth is awesome. But the important thing is to automate and prioritize auto investing. Only sell when you have something urgent to pay for. You will learn as you go. Rome wasn’t built in a day. You will have setbacks. You will make common rookie mistakes: seduced by dividends. You will panic sell. You will buy individual stocks that require constant research. In my opinion the most important concept of investing is to understand to have auto weekly investment. Getting off the fence. Making it a non negotiable. Either hire a pro to make a balanced plan, or just buy VOO or QQQM. Set to auto. Work to increase. Spend less, invest more. Best of luck.
What is this money? Savings you might need on a whim? Personally, SGOV. It could be state tax advantaged, is "safe", and is fairly stable. Money specifically for long term investment? VOO. Or some mix of VOO and VUG or VOOG. As things are I'd DCA just in case of instability.
I'm holding GOOGL long. Sold everything else and took some profits that is now sitting in SGOV until I get an edge.
So what’s that play? Cash? Puts? No thanks. Just hold SGOV, TLT, GLD as hedges and the rest should all be invested. Unless you’re retiring in <10 years, the dips are all just buying opportunities.
A ultra short term treasury fund like VBIL/SGOV
There are a bunch of YouTube videos about SGOV. ChatGPT and Claude both do a good job explaining how it works too.
A hybrid plan is to put it all into SGOV and then DCA out of that fund into a total market fund. So your cash is at least earning interest while it sits.
You know how banks get a certain interest rate parking their money with the government, say 4%, and then give out say 3% interest rate to bank clients to pocket the 1% difference? SGOV isn't exactly the rate that banks get but think of it like that, conceptually. By buying SGOV, you get that 4% and cut out the middlemen. SGOV does charge a fee but that fee is extremely small compared to banks. To avoid the fees completely, you can do your own T-Bill ladder (and manage your money with the government directly) but SGOV's fees are small enough that it's not worth most people's time to do their own ladder.
With a hard August 2026 deadline, stick to guaranteed, short-duration options. Build a T‑bill ladder that matures monthly into your target date; buy 4–26 week bills and roll them until closing day. Shop around too-3.4% is low-no‑penalty CDs at Ally or Marcus let you bail early without fees, and brokered CDs/T‑bills matched to your date avoid early withdrawal risk. If you stay on Robinhood, consider SGOV/BIL for Treasury exposure, but try to hold to minimize price wiggles. I use Fidelity for T‑bills and Ally for no‑penalty CDs; gainbridge.io’s MYGA quotes looked good for longer terms, but surrender periods don’t fit a 9–12 month goal. With a set closing date, keep it guaranteed and match maturities.
I’m using SGOV for a reason similar to yours. It’s an easy and safe place to park your cash until you need to use it, while earning a decent dividend. This is separate from my HYSA, which I view as a bucket available for more immediate needs.
Why SGOV vs VMFXX? Just curious.
SGOV or SPAXX. 3-4 interest vs ANY loss. Why risk it this close?
Your the 2nd person to suggest SGOV. I need to read up on it.
I've read a little about SGOV from here on Reddit. I just don't understand how it works. Maybe I'll dig deeper.
If you’re planning to use the money soonish I would avoid investing it. There’s nothing preventing the market from tanking in a week and you’re down 30%. I would keep it in the HYSA or something safe like SGOV until you need to use it.
SGOV. Don’t gamble twelve months out.
Yeah you should always back test, to see how a portfolio performed during a certain event, it will not always react the same way, but it will surely rhyme. In the 70s bonds also had a correction not normally seen in Bonds, and guess what, due to inflation. The only people that were safe in 2022 were those who held short term treasuries so your typical 60/40 didn't since it's common to just hold SP500 and Total Market bonds like AGG. Now, did bonds still hedge in 2022 and the April tariffs, they did, the pain blow was lessened. You could always replace 10% of those AGG bonds into short term treasuries to protect from huge bond fluctuations, but do you really think will get a big spike in inflations in the next few years that could again cause bonds to selloff? no one knows. So can do 60/30/10 (SP500, AGG, and SGOV/BIL or the ETF available in your provider.) Here are some back tests for you: |Scenario|100% SPY|Classic 60/40|60/30/10|60/30/10 Advantage vs 60/40| |:-|:-|:-|:-|:-| |Apr 2025 drawdown|−19.05%|−11.30%|−11.36%|\+0.06% (marginal)| |Apr 2025 YTD to low|−15.32%|−8.98%|−8.94%|\+0.04%| |2022 drawdown|−25.40%|−21.53%|−19.94%|**+1.59%**| |2022 full year|−19.49%|−17.70%|−16.19%|**+1.51%**|
Automate is the best. Nothing wrong with changing it to SGOV if you think prudent. Sell only when you have something urgent to pay for. If you have been doing this a while, you should be used to ups and downs.
Don't use a bank to "save" the money. You can get an easy and very safe 4% in the ETF called SGOV (short term US treasury bonds), at a brokerage and add to it easily the entire time. That would get you to 76000.
If I were you for every $1000 $100 emergency fund HYSA (or SGOV) $500 VOO $350 QQQ $50 (Random stock picks on RH, your young and it’ll teach you some lessons and give you a feel for markets and make you pay attention to companies and market cycles)
STRIPS are another option and technically safer than SGOV, which is run by BlackRock. Those parasites skim and that ETF is stuffed with derivatives contracts. If you want full control, try zero coupon treasuries. You can get the timeframe down to the exact month. Check their yield to maturity vs. a money market. You'll make an extra 1 to 2%. Another option is to buy a ten year note under par. You can get close to 5% on the coupon, and sell it at any time. If an inflation wave is coming, rates will edge up and T-bills will outpace current bank CDs.
You're over thinking it. A Treasury ETF like VBIL, SGOV, USFR or Treasury Money Market like VUSXX are functionally equivalent. Just pick whatever is most convenient for you.
Don't trade. Just put your money into VOO, SGOV, STRC
Sell CSP on SGOV. It's safe but it doesn't pay much
I don't think its's wrong to raise cash, assuming you've got an investment thesis and a plan. Buffet's equity investment portfolio is approaching 53% cash equivalents (short term Treasuries), and he knows a thing or two about market tops. Today's roughly the 1 year anniversary of the 2024 election, which woke me from an investment stupor. I've been playing the "dollar debasement / America becomes a pariah" trade. Gold miners, silver miners, Euro military contractors and Euro energy transition firms. Good year so far, roughly +55% (I erred earlier in also having positions in oil and ag inputs. Mistakes are inevitable). Today was an up day. And I intend to raise cash to 20 or 25% (from the current -5%) by year end. Less than OP or Buffet, more than most. Historical outcomes simply don't favor broad market investments when valuations are so high, and in the big bear markets, there are few safe havens, even in foreign markets. What's important is whether you're doing your homework for how you'd deploy the cash. Short term, my broker offers dismal returns on cash, so consider socking it away in a short term treasury ETF like SGOV. Longer term, which industries and companies will fare well during a Trumpcession? Make a list, follow their news daily (I just stack them in bookmarked Yahoo finance URLs, eg https://finance.yahoo.com/quotes/EXE,GPOR, .... /). If you haven't read at least the last couple years of SEC filings and gotten a feel for how the companies respond to industry and company news, you've got homework. Keep learning. f you didn't experience the 2000-02 and 2007-09 bears, read about them and look at charts from that era. The memorable bears take 18+ months to resolve. Grab a few books on value investing and investment valuation and read them, as well as a few on technical analysis (with a focus on identifying bottom patterns). Investing can be a less emotional, mentally ordered way to generate income. But only if you make it so.
Thank you everyone for the advice. I think we’ll go either way HYSA but look at SGOV, as well, to see how that’s projected to do against current HYSA rates. Thanks again.
SGOV is better than holding cash but the yield keeps getting lower and lower.
70% VTI and 30% VXUS if long term (10+ year). However the markets are a bit strange right now so it wouldn’t be abnormal to put however much % you want into SGOV or IGOV or TBIL (nearly risk free).
OPEN the SGOV so we can BULL PATH as a CRWD
The main pro of SGOV is that it gets slightly higher yields due to ETFs having much lower expense ratios - SGOV is 0.09% expense ratio, FDLXX 0.42% The con of SGOV is floating NAV of about 0.002% on average (not a big deal, but will end up on your tax forms if you sell it) and the fact it can take 2-4 days to get your hands on the cash. I've always been skeptical that the 2 day turnaround on liquidating SGOV could really cause someone a problem. As I've said before, I have credit cards, and a couple days isn't that long. What kind of emergency meets all of the following conditions? 1. Costs a lot of cash, in the 5 figures at least (obviously you should have like 10k of liquid cash, I'm not suggesting otherwise) 2. Cannot be paid on a credit card (otherwise use the credit cards and pay them off when SGOV liquidates) 3. Needs to be prepaid or paid inside of days - take medical bills. I have months to pay off that 20k. I can plan my home remodel on when the funds will be available. I cannot recall a single expense that met all 3 conditions for a large scale emergency fund. Definitely need your 10-15k of liquid assets though.
Here’s what I do. Have at least 3 months emergency fund. If you have parents or family who are wealthier and could help you if you need help then use them as your backup. If you don’t have that option then I’d say 4 or 5 month emergency fund but keep it in SGOV short term ETF treasuries. You will still get at least 4% and the money is safe so if the markets tank you can easily get your principle back to over cost. Everything else goes into SP500 index fund. You should be maxing Roth accounts as well for the tax benefit. It grows tax free forever and honestly I think tax rates will go up eventually.
hehehehehehe, I'm all in cash (SGOV)
I did this 2 weeks ago and I'm very happy I did. Bearish signs have been everywhere for a month. I'm loving all the red. SGOV Gang 🤜🤛
SGOV is run by BlackRock and a chunk of that "safe" ETF trades derivatives. Buy T-bills direct or through your broker vs. letting BlackRock skim off the top.
I'd give you a bit more credit than that. Not many would/could have done what you did. I, for example, graduated into the GFC, could barely get good work despite having a good college degree, still I was lucky enough to have work, not many saved nor invested back then but I did what I could, and I made some good investments (GOOG/LVMUY) but also bad ones (T/INTC) instead of just indexing and chill despite being a fan/student of Buffett. I didn't start indexing and index leveraging until the pandemic dip. So congratz & fuck you, but make sure to pat yourself in the back. p.s. I read your other posts about why you're getting out now, but what are you going to? Just deleverage into 60/40 VOO/SGOV? All into BOXX/SGOV? 3/7/10/20/30 yr bonds? Gold? Just taking cash and going to Thailand?
does anyone know when SGOV dividends are paid out?
CFP, CIM here. Congratulations on beginning your investment journey. You are well ahead of your peers, and the fact you're already thinking about investing and your future will serve you well in the long term. The most important part of choosing a specific investment product is with your time horizon/goals in mind. SGOV is great for short term goals. I wouldn't get too hung up on passive ETF investing unless there's a clear advantage in fees/performance.
Just buy SGOV and wait for the mega-crash in equities, crypto, and real estate. Then you can buy at a 40% discount from the highs in QQQ.
You cant predict it, but you can still practice risk vs reward. Investing at these valuations is just bad risk vs reward for long term. Theres tons of data to show it. Also, you dont go pure cash, you go SGOV and still get 4% while waiting for better entry points.
I moved 40k into SGOV last week and I should have done more. I saw the AI writing on the wall but I got greedy. Not as greedy as 99% of you dummies, but still. The bubble signs have been everywhere for a month!
I got downvoted for saying I was going 90% SGOV on Monday lmao. Cash the profits buy the dip
I didn't realize that post was one year old lol. I cant help but to go down the rabbit hole to look at more of your older posts😂 Your journey has been so impressive, considering you cashing out a huge portion of this SPXL position, is it something you see in the market that you believe we are at the highest point? I stopped buying in stocks since September this year and sold a few positions to put in SGOV, hoping for a market downturn. Unfortunately this government shutdown is forcing me use my reserves and no income🤷🏻♂️ Anyway I hope I will be able to buy value stocks like you back in 09-12 if a crash comes, is that what you think will happen soon?
Just mentioning SGOV bc the person above did, but why not park it there for >4% yield ccompared to VTG?
What are the plans for the cashed out 3.1 mil? Conservative cash position like SGOV, or less aggressive yet dividend generating positions like SCHD? Or something else? Just looking for inspiration ~
I’m tired, boss. I kind of just want to go 50/50 SGOV and SPY leaps and chill till Christmas.
I am 90% SGOV just waiting for the worst. I still don't buy puts. I know the correction is coming but I'm not going to try and perfectly time it
It would take approximately 31.1 years to grow an investment of $38,200 to $130,200 with SGOV, assuming its current average annual yield of 4.21% is consistently reinvested.
Vanguard's VMFXX is a little higher (same as SPAXX) or SGOV eft (ultrashort treasuries), 30-day yield is currently 3.97% (3.93% avg yield to maturity). All fo these have the advantage of being able to withdraw/sell without penalty or risk at any time, and treasuries are not taxable by states (but you do pay federal tax). If you don't mind locking the funds up, then you MAY be able to goose the rate up a little and be guaranteed with a bank CD. Shop around. Max is just slightly higher than treasuries (around 4%) and interest is taxable by state, so unless you find a good deal it's probably not worth it.
You know things are getting really bad when the sub tickers change to BRK B SGOV and GLD
The other two are money market funds similar to SGOV it also settles in T+1
SGOV is a t+1 security. I was referring to the other 2
Howdy from Charlotte! Having it parked in your sweep account position (e.g. SPAXX) would probably be most immediately accessible. With that said, personally I keep my emergency fund in an investment position. SGOV is an option. I do auto-rolling treasury bills just because it's easy and buying the securities directly as good as one can get with return. *It's then very clear what I am keeping "tied up" as do-not-touch money*, whereas my SPAXX position is then truly uninvested discretionary cash to do whatever with. I figure even in a bad situation I'm not going to need all that emergency $$ in cash available *instantly;* fine if it takes a day or two to settle from a sale and transfer out.
Put it in SGOV and you'll beat 99% of this subreddit
With tax efficiency you could consider an ultra-short muni ETF like JMST. But you have to do the math to see if you'd have more or less after-tax return with that compared to SPAXX or SGOV. Personally if I have cash to park I like SPAXX because it's instantly deployable. Granted I think pulling out of the market to sit on the sidelines is foolish, but that's a separate topic.
SGOV, especially if you live in a state tax state. Find a good advisor, make a friend. You’re likely making mistakes more expensive than their fees. This is no insult. Best of luck.
SGOV also slightly above average volume today, this might be the real deal
Only down 1.3% for the week. Got 50% in SGOV, looking to make some buys now.
Yeah, waiting would be the prudent thing to do. My guess is we go down 10-15% or so, either now or within a few months. I have some SQQQ and some QQQ put options, but mainly because some longs I don't want to sell for tax reasons. That keeps my port from moving much either direction until I get a better sense of the market direction. Being in cash is fine also (SGOV or USFR)
Mostly SGOV and shorted TSLA in the am but it reversed too fast.
As others have said, holding treasuries in brokerages (SPAXX, SGOV) or in banks (HYSA, CD) are as safe as you can get. Things that hold treasuries (SPAXX, SGOV) have the benefit of being STATE tax-free. Consider CDs (I just got a 15mo at 4.2% APR) for funds you don't need for however long as PART of your holdings (do pay ordinary income tax on dividends, tho) since it locks in the rate for the term (if you think they'll keep cutting rates for a while). SPAXX is great for instant access, but SGOV (and similar) will give you a little better return (just under 4% atm). If you want to dip your toe into investing outside equities, consider close-end bond funds (like iShares iBonds) that if you hold to maturity (from 1-10 years depending on the fund) you should get the YTM rate. You can get a little better rate going corporate bonds, but there is a risk of default (small on high quietly corp) and you'll pay tax on the dividends (paid out monthly). Or you could consider setting up a bond ladder/tent for short term treasury bonds. The idea is to have the funds from the bonds maturing match when you lan to invest (or need the money). If your timeframe is 30+ years, DCA over 2 years starting now would be fine. If your timeline is shorter or you just do not want to risk it in the short term (hey, Warren Buffet has almost half his cash on the sidelines, too, so not that crazy), that's fine -- you do you. Honestly, it's better to underestimate your risk tolerance than overestimate it and panic sell when things drop.
Anyone know why SGOV would be showing 100.40 as the bid and ask all day? How can the bid and ask price be the same?!
SCHD for the long haul, SGOV for the short
60% stocks / 30% ETFs / 5% cash (SGOV) / 5% swing - and I'm retired
If you aren’t using your 1k interest free RH margin to invest in SGOV to cover your gold membership, wyd?
Learn to buy auto and weekly. Preferably VOO or QQQM. Try % and splits are rather irrelevant. The adding auto and weekly is the key. Sell only when you have something urgent to pay for. When you want to pivot from one holding to another, just switch the auto without selling. Work to increase the auto. SGOV for emergency fund or short term expenses. That’s it. Nothing much more to think about. Old low cost basis stock is actually a danger, because it hurts to buy at new all time highs. When you should always be accumulating
SGOV. If you plan on spend less than 2 years, don’t put in market.
If you need the money in a year, you want something like SGOV or a CD ladder. Maybe PAAA if you want to throw caution to the wind, but nothing more than that.
Definitely not. The S&P 500 is a good bet if your time horizon is a decade on longer. It the short term it could easily drop 20% or more and not recover for years. Look at 2001 or 2008. If you had invested in the S&P 500 in Dec 2007, you would have finally broken even in Jan 2013. It's money markets or short term treasury funds like SGOV for those time horizons, not equities.
I might be corrected on this, but they are the same. SGOV is a treasury/bond ETF while VUSXX is a money market fund. Different vehicles with the same destination. SGOV price rises over a month and resets when dividends are paid. MMF prices are fixed to $1 per share with dividends paid in accordance with current interest rates (minus their expense ratios)
SGOV or a similar treasury money market, or possibly a muni money market fund if you are in the 37% Federal tax bracket.
In my short-term account: I have a rolling ladder of 8-week treasury bills as my emergency fund, rather than a high-yield savings account. Current yields are right around 4%. Alternatively an ETF like SGOV isn't going to be far off that, or even a money market position. I do the bills so that money is "locked up" and spoken for, whereas my money market position is un-invested / discretionary. That is supplemented by a broad bond index (e.g. FXNAX, AGG, BND...), and increasingly municipal bonds both in index form (MUB) and some individual in-state bond holdings. That account is also supplemented by some defensive-sector equity (utilities, consumer staples) and dividend-focused equity ETF's in modest measure. Whether taxable or tax-exempt bonds make more sense for you depends on your tax bracket.
Pretty good. But I would put some in VOOG, MAGS, SOFI, CHYM, and leftover cash in TLT/SGOV.
Hey r/investing! Complete noob here with $1000 burning a hole in my pocket. Never invested before but finally ready to stop being scared and jump in. Been lurking here for weeks and keep seeing that 40/30/10/10/10 split everyone talks about. So I'm thinking: 40% VOO 30% SCHD 10% SGOV 10% VXUS 10% SOFI (yeah I know, single stock is risky but I'm weirdly bullish) After that, planning to DCA $11 daily. Want to eventually work QQQ up to 25% but honestly terrified of being too heavy in tech. Like what if AI hype crashes and burns? Is this totally stupid for a beginner? Should I ditch the SOFI pick and play it safer? Really don't want to mess this up since it took me forever to save this money. Any advice appreciated, thanks!
\> Is one of these companies the next NVDA? No, and not a productive way to look at 99.99% of investments. \> Texas Instruments The only $100B+ semi company to underperform SGOV the past three bull market years. Zero innovation.
HYSAs, SGOV, SPAXX (or other MM fund), CDs/MM certs, or TBills...
Just did a HUGE FULL PORT into SGOV, about to print Monday
SGOV is great if you live in a state with income tax because it’s typically exempt from state and local taxes.
Read "The Income Factory" by Steven Bavaria, this shows how to get about 10% yield on your cash through owning a diverse group of CEFs, BDCs, etc. I keep some cash in SGOV 4%, some in PAAA 5.4% and a lot in a blend of BIZD 12% and mREITS like NLY/AGNC/DX 15%, so my dry powder is doing something while I wait for the next market correction
Well, I do not have an employment income at the moment (laid off recently), and I use SGOV funds to invest / divest from securities gradually. Rest of the portfolio is quite aggressive (AI bubble stocks that have done really well). Also we are considering maybe retiring early, especially if I cannot find a similarly well paid job as the one I had. This is well into 7 figures portfólio BTW.
Fasho. That being said, I notice ppl often put SGOV there (which I do also). I assume this is done because it’s safe, but also because it’s state tax exempt.
I am 80% SGOV, not a bear but took profits. Growth seems to have stagnated and MMs could make a lot more at this point plunging SPY to 600 than trying to push it to 750
Ignore the noise here. For sure, you should have some cash available to invest if there is a crash or if you lose your job because of a deep recession. How much will vary depending on your situation, age, and how overpriced the stock market is. Read an article about bond investing to understand the basics. Because of the explosive US debt, I wouldn't buy a lot of long term treasury bonds. Instead use money market funds or short-term treasury funds like SGOV. Keep it simple. You also need to diversify your stocks. Now everyone feels smart about investing in tech. This can change very quickly.
If you profit more than SGOV ytd you are better than doing nothing