SGOV

Zealotstim

I have about 40k in SGOV out of about 300k in my brokerage accounts. On a significant downturn, I would invest much of this into stocks.

Rich-Contribution-84

I hold about 12 months’ of expenses in cash (HYSA/SGOV) regardless of market conditions. I do think that a crash in the next few months the or years is likely but I also know that I’m shit at predicting such things. I’ve thought a serious crash was coming for over a year. I’m glad I’ve stayed invested through it and through COVID and through the financial crisis, etc etc.

Dawnchaffinch

I use SGOV as an emergency fund

TestTrenMike

Hahah that’s awesome yeah just sit in SGOV Make some interest in the Meantime

Heyhayheigh

For me a bank account is for paying bills. Honestly, Fidelity account is better to receive direct deposit than most banks. The budgeting and historical performance is better than any bank. The expense tracking is better. The automatic money market (even though you should use SGOV) is better than any bank. A bank is useful for like linked credit cards, maybe Zelle and ATM? I find clients spend HYSA money easier than SGOV money. That might be my anecdotal experience, fine. But just that little obstacle of liquidating SGOV helps fend off needless spending. You want to pile on little habits that are designed to help you. Set an auto, if you forget it, at least it was working for you auto. Use SGOV with dividend reinvestment. If you forget it, at least it is not expiring CD that relies on you following up. The little things add up. Structure is strategy.

Heyhayheigh

SGOV. Short term money shouldn’t be in market.

hgreenblatt

Gotta tell you , your Logic if that what it is really convoluted Reddit Crap. First off , RH is the WORST. After that Cash accounts (includes IRA) come in a close second, but an IRA is beyond your control, so it is a great way to screw 90% of the working stiffs. Also if you get matching , it does make sense, but in that case I doubt you can sell Puts. Now after this Rant which may have turned off most of you what is a solution? Fair question. In my Margin Account , ALL MY CASH, is in SGOV , or treasuries, but earning over 4% per year (that may be changing). 70% of the face value of my Sgov and 99% of treasuries are Buying Power. So I can Sell a 500 Spy Put for between 6k-10k deduction in Buying Power. No waiting period , and if I need Cash I can sell the Sgov and get immediate Cash at MOST Brokers (Schwab, Tasty, IB ..., NOT at Fidelity, Vanguard...RH?). So what happens at assignment... Well you really have to work hard to get assigned, but if you close or Roll two weeks before expiration it becomes a non issue, and here is the little secret they hide on Reddit .... it does not matter. Assignment does not change you position. It does close the trade, but you just close out the stock position and add the losing cash. This is what your position would have been in the cash account ANYHOW. I know too much info, well you wanted to trade options. Try these Tasty vids on Buying Power and Assignment. Watch a few times, even better follow some of their shows over a few months and it will become clear, and you will stop being bait , and maybe become the shark. Buying Power [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) Buying Power [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020)

Beerddviking626

Specifically, I’m only holding 30 to 90 day bonds with the ticker SGOV. For my limited understanding, it seems that the short-term bonds will not be heavily affected by either a rate increase or decrease in September. Additionally, they’re very liquid so I basically use it as a high-yield savings account while I’m coming up with a plan

thenuttyhazlenut

|Company|Ticket|Allocation| |:-|:-|:-| |Arch Capital Group|ACGL|24.25%| |Qfin Holdings|QFIN|16.50%| |Crocs |CROX|14.00%| |Medical Facilities|DR|12.75%| |Wise PLC|WISE|11.50%| |0-3 Month Treasury Bond|SGOV|9.00%| |JNBY Design|3306|6.00%| |Petrotal Corp|TAL|3.00%| |UnitedHealth Group|UNH|3.00%| (54.00% US Equities; 22.50% China; 11.50% UK; 9.00% Bonds; 3.00% Peru Oil) Lowered my China position, though it's still high. ACGL remains my top pick. I bought CROX and UNH, with UNH intended as a short-term trade.

Zestyprotein

SGOV has some benefits, but flexibility isn't one of them, as the dividend pays at the beginning of the month, and usually clears a few days later, plus weekends and hoidays, it can get a little wonky if you actually need it *today* around those times. In the end you get your money, but it can throw off the numbers if you are trying to take advantage of an opportunity, or have an actual emergency.

Heyhayheigh

Where did that cash come from? How many years have you saved it? QQQM or VOO, set to auto. Make sure you leave some in emergency fund in SGOV. Don’t rely on self discipline, set to auto. Only sell when you have something urgent to pay for… Learn as you go but get started today. You will do great!!

skymagic

Chinese spy balloon was shot down by a fighter jet using a missile and I'm not allowed to by 0DTEs on SGOV?

Siks10

Save max in your 401k first. Absolute minimum is what you need to get the full company match. Secondly, get an emergency fund in a high yield savings account (more than 4% interest) for 6 months worth of expenses. Start a brokerage account and start transferring money every paycheck. By SGOV if you don't know anything else. Buy VOO if you believe American blue chips will do well over time. Read and learn about other ETF. Avoid individual stocks, crypto, and options for now

Siks10

Don't worry about taxes. Sell 10% OTM, 60-90 days DTE, 5-10% premium calls on whatever you don't think will appreciate the next few years (this may be the P/E >50 stocks). You may or may not get assigned. Sell ATM puts on defensive stocks (DOW components, utilities, telecom) when you get cash. Also buy international ETF (DAX, FEZ, ILF, FXI, UAE). Put new savings and cash in SGOV until you have a strong conviction Buying puts is like an insurance you pay for. Personally I think that's a waste of money

Heyhayheigh

If your match is really that, then max that plan out lol. In the taxable do the same VOO, buy auto and weekly. Set to auto. Don’t rely on self discipline. Sell when you have something urgent to pay for. That’s all investing is. Emergency money keep in that Fidelity account. Either in default money market, or SGOV (for a little more). Keep it simple. If you make big cash and you don’t think you’re optimized enough, find a trustworthy pro. It’s like knowing a good accountant or lawyer. Good to know more than one. Best of luck!!

Heyhayheigh

Fidelity account. Put in SGOV. Educate yourself on bogleheads. Buy 1,000 of QQQM and never touch it hahaha. Best of luck young buck!!

Heyhayheigh

You should have 6 months emergency fund in SGOV, then buy whatever you can weekly in a low cost ETF. VOO or QQQM, it doesn’t matter. Use a firm that does fractional. Increase that auto weekly. Then only sell when you have something urgent to pay for. Do that all your life. Yes there are things to learn and optimize. Roth. Etc. but get started today. Make it a way of life. Learn as you go. If you make really good money and it doesn’t get done, then find a trustworthy pro and hire them. Best of luck!!

VegasWorldwide

hard to answer without knowing when your desired retirement target is. if that target is within 5 years, you probably want to consider paying the taxes on a large portion. you always want some exposure, so there's no need to sell all. stop contributing immediately and use that cash to buy SGOV. whatever stocks you have at a loss, sell them now so you can tax harvest those. then, sell some profits for whatever those losses are, so it's a wash. no tax bill. if you still like those positions, you can buy them back in 30 days. this is how I would get my transition started.

Rich-Contribution-84

It’s complicated but roughly speaking I plan to sell around 3% each year at the beginning of the year, every year and move it to SGOV or a HYSA starting the year that I retire. You’ve also got to sell RMDs which could put a kink in that. I say 3% but that’s just an estimate. I’ll also partially be living off of rental income and social security and I may be in a place to make it more like 2% ~. I’ve got 24 years ~ left until retirement though. I’m about 20 years into my journey and haven’t sold anything yet and don’t plan to sell anything (except RSUs to convert to index funds and some index funds in tax advantaged accounts to convert to bonds when I get closer to retiring, if you count that as “selling”) until I’ve retired. Trying to time market peaks and valleys is mostly a fools errand. I sell based on my timelines and goals, not based on market performance.

Such_Region2724

SGOV

thedanielperson

At this stage, I'm looking more to just have a means of stowing some cash away for a few years until the day that I've accumulated enough and am at a stage where buying a house makes sense for me and my fiancee. I guess ultimately the big thing that was throwing me was that I was trying to figure out whether it made more sense to invest in short term bonds that line up with the timeline I'm saving this fund for, or if ultrashort bonds like those 1-3 month bonds. From this and other comments, it's looking like the latter. First off, I'm not sitting here with all of the cash I already need for a down payment, but just aren't in a position where purchasing makes sense for my life right now. If that were the case I maybe would just buy some 2 or 3 year treasuries and hold them to maturity. But since I am more looking for a short term vehicle to accumulate chunks of savings that I intend to continually add to over the next couple of years, sounds like a MM account or an ultra-short bond fund is the way to go. Any specific recommendations to that end? I've been looking into a Fidelity account. I've gotten a suggestion for SGOV if i go the bond fund route. I've also seen some funds that are more geared toward high grade corporate bonds, which look like they have better interest rates but arent exempt from certain taxes in the same way as treasury bonds?

AgentK-BB

SGOV is close to 100 state-tax free. SPAXX was ~45% state tax-free last year. FDLXX is the SGOV equivalent. SGOV has better yield than FDLXX although FDLXX gives you the convenience of auto-liquidation.

Ok-Cook8381

$SGOV closes green every week too…

Heyhayheigh

Open a Fidelity account. Put in SGOV, that is a tbill ETF. Then educate yourself. Maybe find a trustworthy pro. If you’re high income you should already have a system in place.

Lethalmouse1

Side question, do you have a deducated emergency fund? The easy concept is 3-6 months expenses. I honestly would say 6 and I say 6 months income.  Why? 6 months operating expenses for a household making the avg income, would be roughly $18,000. Since a good version of this hypothetical avg person, is in theory saving and would have no taxes to pay on the money they are using, no 401K contributions, and no savings they normally do.  Income for that person, would be $26,000. Why is this superior and necessary? Unless you itemize savings (another good option), a roof, a HVAC issue, etc, can run up 7-15K pretty easily. Let alone a car worst case scenario etc.  And 26, should be enough to address emergencies if you get a bad string of luck.  Anyway, I'm going to assume that given you have 147K burning a whole in your pocket, your minimally mandatory accounts are funded proper. So we get to a goal factor, 4.5% is that odd space, low, but not stupidly low. It is a risk free 4.5% and not a 4.5% with risk.  The risk of job issues, making that payment etc? Well if you are well budgeted and emergency funded and expenses funded, you should be okay-ish.  $67K on mortgage, it will give you an instant 4.5% return on 67K and drastically accelerate your mortgage payoff. Further, you can just let the mortgage end and not deal with payoff amounts and back and forths. Smoothness always has value.  $50,000 in S&P index fund  $30K SGOV.  That gives you your 67K at 4.5% and the 30K SGOV at 4.5%. Odds would be insane for you to have a catastrophic situation in a few months right? So basically, the 30K paces the mortgage, and is there to pay off if you need to. And is in general, rather close to full liquidity, with the second lowest risk.  The 50K, gets you started on your S&P Index fund journey. And then with the way we balanced this, I would stop making the extra $150/month payment to the mortgage and allocate that to the S&P fund.  Now, I'm also assuming your 401K is handled? If your 401K is light, then you might want to go that route. Or use some of the 147 to get you to max contributions for the years. Etc? 

KnightMollo

I hold 70% of my account in SGOV and money market while I achieve a similar return compared with SP500 in last month, should I just full port in SPY or VOO directly?

SnS2500

\> We've been working on a systematic approach to dividend analysis Why? \> Accenture, a consulting company most don't realize pays dividends, and Snap-on, a tool manufacturer, scored higher than virtually every "dividend aristocrat." Accenture is a steaming pile of trash... it is down 20% the past three years, and has underperformed SGOV the past five years. Pointless exercise, but a really awful conclusion.

PrinceDX

Congrats. I’m up 94%. I put all my capital gains tax in SGOV. Wouldn’t mind getting one more nice play in this year but willing to sit if needed. We all know the red wave is coming 🧸

ScroogeMcThrowaway

This might be the first time SGOV was ever mentioned in this sub. Not hating on SGOV at all, heck, I still have cash in a high yield.

Agitated_Medium5844

It’s my risk preference, given current valuations you would want to rate it based on that say you’re 20% sure the valuations are too high. You wouldn’t invest more than 20% of your money. Because your 80% sure that multiples on stocks will decrease from over 20x to something more moderate like 15-18x. Then you add in the risk to the dollar substantially weakening with the rate cutting cycle beginning, the historical precedent of gold outperforming the S&P by 50% which occurred in 2000 and 2008, a fiscal quagmire of deficit spending which will likely push rates up instead of down, the risks are too high at the moment not to have insurance in the form of non-correlated assets, such as gold/BTC and ST treasuries (SGOV) playing a part in your allocation. If you want to throw it all in the account that’s fine, but just start with 10% invested in risk and 90% in SGOV and dca your percentage in SGOV down each quarter. SGOV is essentially a cash position z

MutaliskGluon

I am net long. I have EOSE common shares, and NVDA Leap puts. And a whole lotta SGOV. And I am the way I am because I can read data and see through seasonal adjustment bullshit and revisions.

ddysart84

I parked mine in SGOV a week ago.

skipichi

On rate cuts his SGOV would skyrocket

Kachowxboxdad

I’m like 99% SGOV right now

dogefool88

79% cash in SGOV, remaining in AAPL; the safest stock on planet earth

theblogdoctor

Well Done!! >Closed out all positions going to sit in SGOV for a while Why not park the cash in your RH account and earn 4.5 - 5% interest? I see SGOV avg. returns is like 2.81% only.

AP9384629344432

What's the difference between just leaving it as cash and earning the 4-5% interest by default and investing in SGOV?

MitchCurry

Ah, I misunderstood. I thought you were asking early about the January deposit. Yeah, SGOV makes sense. VOO could work too though if you just sell and re-buy in the Roth. You either have losses that you can use for taxes or you make money. Yeah, you'd owe taxes on it but you still made money.

10jacksuited

If you’re considering SGOV look into USFR it yields slightly more

HighFreqHustler

Im building up my SGOV (30%) so far and VOO instead of keeping higher risk single stocks.

LanceX2

100% SGOV. This is 100% what I do with me and my wifes Roth funds. 

MutaliskGluon

The point is im doing that with no leverage, while being bearish the whole time and having at least 50% in cash/SGOV since 2022. If i was actually levered up and doing the same shit it would be 1000%+ but alas I am not. I also perform with essentially no relation to SPY. I overperform SIGNIFICANTLY during flat/bear and usually underperform during melt up fomo stages.

Rich-Contribution-84

If you’re saving money to spend over the short term, like to buy a house in a few years, SGOV is where I’ll typically put it. Maybe an HYSA or a CD or T bills. Equities only really make sense long term (IE consistent buying over multiple decades). The stock market is too volatile for short term savings when you’re gonna need the money in a few years.

Ok-Cook8381

Your $SGOV calls

DoinIt4DaShorteez

1. You can set up a Fidelity brokerage account in a way that you would be able to write checks against your SPAXX balance. 2. If you are parking cash in anticipation of a dip to buy, You could sell SGOV at any point during the day and turn around an immediately buy something else with it. SPAXX being a mutual fund, it doesn't officially price until the close. So you'd have to put in an order to liquidate some SPAXX and then wait until the next day to deploy the cash to something else.

BobaChonker

Are there any restrictions with SGOV like you have to hold for at least 30 days before selling? I just want to park my cash there and when there is drop in market I will deploy it on equities.

jason22983

Nothing really, you have to buy SGOV while your money is automatically depositing into SPAXX.

Kachowxboxdad

Nearly all SGOV here

Heyhayheigh

You sound exactly like someone that should just use an ETF lol. Use SGOV, set to dividend reinvestment. Go on with your day.

Narrow-Acadia8814

SGOV looks like a winner but some "experts" are saying to AVOID it. I'm not sure why.

Ok-Cook8381

Buying OTM calls on $SGOV

WagwanKenobi

Note that SGOV doesn't count as "bond exposure" in any meaningful way and is basically equivalent to a HYSA.

Apprehensive-Ear-555

SGOV

Siks10

I keep cash in SGOV and some investment in international ETF for better earnings multiple and currency hedge

TheYoungSquirrel

SGOV or TFLO? I currently have my efund in TFLO.

Siks10

Buy SGOV for 80% and VOO for 20%. Check VOO every month. If it seems to have gone down, sell 5% SGOV and use it to buy VOO. If VOO goes up and you believe it will continue to go up, you \*can\* still buy more VOO but if it looks like a peak, you can hold for a bit. The next couple of years will be rocky. At this time SGOV pays over 4% dividend and is almost as safe as cash

SirGlass

A brokerage interest on cash doesn't matter you can always buy something like a money market fund or a short term bond fund like VBILL or SGOV what will pay the short term rate. So I really wouldn't get hung up on their interest rates on cash, if you want to get basically the short term interest rate just buy VBIL / SGOV what hold short term treasuries so you will always get basically the short term interest rate Also yes a Roth IRA is a good idea. Pick what ever brokerage you like best

MotoTrojan

Unless you want to take on duration risk, the main optimizations to be made are on taxes. Are you going to hold for > 1 year? Are you in a low/no income tax state? If so, BOXX would be an option worth looking at. BOXX will have a similar return profile to SGOV, but without any expected distributions, meaning no taxes due until you sell. If held for more than a year, you'll only pay long-term cap-gains rate federally, saving some $ relative to SGOV's income status (and if held for many years, saving even more $ from deferral/compounding). The main gotcha is that you will pay state income taxes unlike SGOV, however that again is only at the time of sale. If that isn't enticing, SGOV is a good option and shoudl yield more than FDRXX I'd wager. 4.44% is the prior 12 months yield on SGOV though, the SEC 30 day yield of 4.23% would be a better approximation of SGOV's forward after-fee yield.

AstroNawt1

Or look at SGOV

iceland00

I use ICSH in tax-advantaged retirement accounts, it returns a bit more than SGOV.

domadilla

Thanks for sharing I went to a similar % cash recently as well. I will look into SGOV since the cash was just sitting in my account - nice to know about this!

fondelmabols

I would start with everything in SGOV (pays about 4%) and slowly start dollar cost averaging into the market. Have a strategy. Don’t go all in at once no matter what people tell you.

TheRemonst3r

I'm by no means an expert, but maybe don't think about it in such a "lump sum" fashion? Maybe you take 1/3rd and put it in a total market fund like VTI, 1/3rd into SGOV for bond exposure, and keep another third in HYSA. Or any combination thereof. Maybe split it into 25% and put a chunk in a 529 account for your kid's education. All of the above will not require active management on your part so you don't have to worry about "doing something wrong".

Zestyclose_Hat1767

How do you lose shares of SGOV if they’re being used to generate dividends to invest?

catastrapostrophe

SGOV is where I have my sidelined money. But if you're worried about the USD then you could do something like FXE, which is Euro denominated debt. This yields less, but if the euro appreciates vs the dollar you could come out ahead.

blorg

3.5% is not great for USD. SGOV is around 4.3%. There are European equivalent short-term bond funds. https://www.vanguard.co.uk/professional/product/etf/bond/9933/us-treasury-0-1-year-bond-ucits-etf-usd-accumulating eToro charge 1.5%. 1.5% each way does come off your return. You'd also have tax on the interest paid. It's not just the fees converting, you'd also have currency risk. If you had done this at the start of the year, you'd have made around 2% so far this year, but you'd be down -11.5% in EUR terms as the dollar has collapsed. If you are looking at European UCITS bond funds, and you want security of capital, there are EUR hedged bond funds, like [Amundi US Treasury Bond 0-1Y UCITS ETF EUR Hedged Acc](https://www.justetf.com/en/etf-profile.html?isin=LU2182388749). These should preserve your EUR capital and you get the return hedged. There's a cost to this but buying fixed income in a currency other than your own probably doesn't make a lot of sense as you are taking significant risk on the exchange rate, and you buy these things because you want no risk.

thedanielperson

> The short answer is that you probably want to use a money market fund, or etf masquerading as one (SGOV), which will be similar to a savings account. I actually appreciate seeing this response because I was researching money market funds the other day and had the hunch that might be the way to go if I wanted to keep it as somple as possible, just wasn't sure and wanted to keep researching > Most bond funds are constant duration. That means they buy new bonds to replace the ones that are getting too young or maturing. This is good for long-term portfolios, but doesn't allow duration matching. OK noted. So this is why a bond fund, even if it is shorter term might not be good for a situation where I expect to eventually pull all or most of my money at once.

xiongchiamiov

The short answer is that you probably want to use a money market fund, or etf masquerading as one (SGOV), which will be similar to a savings account. > The thing that I don't get (or at the least am made to feel like I don't get) is the purpose, value, and risks of the various maturity periods. You'll run into a concept called "duration matching". Duration is an important metric for bonds. Roughly, it is the time until as a holder of a bond you no longer care about changes in bond rates. So first: bonds are sold by the entity issuing them, which is the primary market. Then people sell to each other, which is the secondary market. When new bonds come out on the primary market with higher coupon rates, the value of older bonds drops on the secondary market, because why buy them if you can get better ones? And vice versa. As you hold a bond, you get coupon payments. Once you get enough of them, you don't need to recoup your costs via selling the bond on the secondary market, thus you don't care how interest rates change, and that's the duration. Zero-coupon bonds aside, this will always be less than the maturity of the bond. If you buy a bond with a longer duration than your predicted time of use, you're exposing yourself to the risk that rate changes will reduce the value of your bond and you'll have less money than you started with. If you buy a bond with a shorter duration than your predicted time of use, you're exposing yourself to the risk that after you cash in your bond, newer ones may have lower rates and thus you won't be able to maintain as high a growth rate as you predicted. Thus, some people will suggest buying bonds with durations that match your timeline. Bond money market funds are far on the short side, which means you can't count on the interest rate. But they are designed to never _lose_ money, which is often the more important criteria for things like a house downpayment. Most bond funds are constant duration. That means they buy new bonds to replace the ones that are getting too young or maturing. This is good for long-term portfolios, but doesn't allow duration matching. There are a couple of funds with decreasing durations (https://www.ishares.com/us/strategies/bond-etfs/build-better-bond-ladders is the most notable), but most people doing this buy the bonds directly.

foulpudding

If it’s purely a choice between having 300k and a mortgage OR having 0k and no mortgage, then I wouldn’t suggest paying anything down, you’re too poor to consider anything but looking for work, *even if it is just as a Walmart greeter.* I’d also suggest you can’t afford the house you’re in and are also probably overextended. My recommendation would be to sell the house and buy a cheaper one, or rent, leave at least six months in SGOV or cash in an easy to access account and invest the rest in stocks and hope for some good years, saving every penny you can in the meantime. But neither OP or myself are in that position. OP has 900k in yearly salary and a 550k 5.4% mortgage. And I’m at the tail end of a career and have plenty of other investments/savings in addition to the home I’ve already payed off. Is there a set of numbers where I completely agree with you? Yes. But I’d still rather own my home outright and would work towards that.

981flacht6

Just put it in SGOV or an HYSA or something else less risky then. If you don't know options, puts isn't where you start. Also, these days the markets have changed a lot in comparison to the financial crisis. Banks do stress testing (and pass), they plug up any liquidity crisis very quickly - see the regional banking crisis from 2 yrs ago, market buys dips ultra fast now. The Great Recession was not your average recession. And nobody wants to go through that period again. The people who are LIVING right now, (everyone), who was around in 2007-2009, DO NOT want to go through that again (even the richest people).

EvolvingDior

SGOV has not been around long enough. Look at GSY, same sort of fund, but it's been around through all of the Fed's shenanigans. [https://finance.yahoo.com/quote/GSY/](https://finance.yahoo.com/quote/GSY/) Zoom out.

TequilaTrader

SGOV, you’ll never lose money.💰

D3N1Z3Nx

Let's do both at the same time, sort of. Start pushing money into SGOV and negate a chunk of that mortgage interest. Keep dropping money in there, and put some in the market into something like VT that will not rely solely on the US market for gains since international is expected to outperform US over the next decade. That will save you from getting caught up in putting a bunch of cash into overvalued stocks in the short term, keep you from losing too much to interest, and work towards creating a lump sum to pay off the mortgage while maintaining liquidity in the short term. You will also have a core stock building up in your portfolio that is very diversified. That's what I would do if I had your level of income with that situation.

dinklebot2000

Maybe go 50/50 with VOO and SGOV?

UntidyJostle

it would not hurt to put that cash in a brokerage acct, and while you decide on anything else, you can buy SGOV or another ultrashortterm-bond fund, that pays dividends% rate similar to MMF (now 4.2%). While still being fast to liquidate and trade for stock. That HISA rate is weak for no advantage other than perhaps FIDC coverage. If this is your "emergency fund" then maybe it should just sit where it is.

greytoc

The SEC yield for a money-market fund is always net of expenses. So you shouldn't really need to care as much if the yield makes sense to you. SGOV is not money market funds so there is an super tiny bit of interest rate risk. But these are ultra-short duration funds and if you are typically holding for more than 30 days - it's fine as an alternative to a money market fund. XHLF is not ultra-short duration and carries about a 6 month duration. It doesn't mean it's a bad choice - but there is a little bit more duration risk. Also - with the short-term treasury yield curve being inverted, 6 months may be on the lower end of the yield curve. Re: AEAXX - You can always get the actual expense ratio from the investment manager disclosures - that would be here - [https://www.alliancebernstein.com/us/en-us/investments/products/mutual-funds/fixed-income/ab-government-money-market-portfolio.a.018616730.html](https://www.alliancebernstein.com/us/en-us/investments/products/mutual-funds/fixed-income/ab-government-money-market-portfolio.a.018616730.html) >They all should be federally taxable and state/local tax-exempt, as they primarily invest in treasury bills, right? It depends - you have to look at the fund's prospectus and their previous year's tax information. Some "government" funds may hold government obligations and/or repos. which may change the percentage that is exempt from state taxes. If you are in a high tax bracket - you can also look at muni-funds. Re: higher risk and return on cash - that really depends on your williness to actively manage cash equivalents and your knowledge.

PIRATEJOANS

I’ll give you an example of a cash secured put. Basically you issue a cash secured put saying you’ll buy shares of VOO if it reaches a price you’re comfortable at (in this example let’s say 500 dollars). A person will pay you a premium for that option so you collect this income immediately. Then if there’s no dip, you have no obligation and you run off with a free premium you’ve made. Now let’s say it dipped to 490 and the person who bought your put executes his order. Now you have to buy shares from him at 500. However, if you’re comfortable with the strike price then you’ve allowed yourself to effectively gain a free premium while waiting to buy in where you’re comfortable at. SGOV is entirely separate. It’s basically a govt bond etf that guarantees you a monthly dividend based on interest rates (which are high right now… so probably around 5%?) Now you’ll notice, none of this is advice to enter or not enter the market by buying all in. I’m sure the rest of Reddit is doing a great job at telling you what to do. Instead, im giving you two options of safe things to do while on the sidelines to gain money while you decide what to do, that way you’re atleast making something while you decide what’s right for you

pureghostt

Please for the love of god put like 70k into $SGOV or something and ride out with dividends for the rest of eternity.

cdude

You should plan your retirement around a target amount based on your current expenses, not based on what your future retirement balance could be or will be. And with how tax brackets work, you have plenty of room to withdraw a lot more and stay within the same effective rate. That's why "most people are in lower brackets" when they retire. Worrying about tax changes is valid, but you need some perspective. There are always the lower brackets to pull your effective rate down, so for your effective rate to be higher than your marginal rate now, it would mean the taxes on lower income people would increase dramatically. Which is very unlikely. How you withdraw is up to you. You can sell the equivalent of a monthly expense and withdraw immediately. Or you can sell an entire year's worth, park it in cash-equivalents, and withdraw monthly amount. Or you can withdraw the entire amount, and park it in a HYSA. I personally sell a year's worth in January, buy SGOV, and periodically transfer a few thousands to my checking account.

therealjerseytom

Depends what you're trying to achieve. I have positions in T-bills (SGOV would be the closest match), VCLT, TLT, ANGL, FXNAX, MUB, and some individual in-state municipal bonds. > I know of only a few that are worth investing maybe 5% of someones portfolio in. Is that to say, in your view, for *anyone* regardless of their age or investment goal time horizon, you can only imagine at most, 5% allocation into bonds?

Just-Entry2563

Okay so you are saying use the SGOV for my savings?

Heyhayheigh

SGOV is a tbill ETF. So it is for short term money. It should be used in places you would use HYSA or CD’s or regular bank accounts. Why? Because it will show you what you gave up in historical performance. A bank account (HYSA) won’t do that. Very welcome and best of luck!

Just-Entry2563

Hey Thanks for the reply! Is the SGOV for savings or investing because I currently have a brokerage.

Heyhayheigh

Don’t use HYSA. Open Fidelity account. SGOV for short term. At least you will see historical performance to compare it to

Lethalmouse1

Huh? It isn't the cash only.  It is the value. Or unless something changed. Margin is margin for everyone.  If you own sgov, you still own an etf, that is part of your margin account. It isn't a government thing.  So, they can leverage their holdings of your assets.  One example is typically in a cash account, you can choose to allow or not allow your shares to be lent to shorts.  In a margin account you can't typically, that I know of.  So for over over over simplification. Let's say you: 1 share of X at $100.  Broker Let's short seller borrow.  Short seller fails to deliver and fails due to drop in collateral to make up the difference.  Short seller gives broker $40 to get your $100 share back.  Broker, also failed variously and literally doesn't have the other $60 to buy back your share.  Broker does this time thousands and has to go bankrupt. During process, priority debts and cost of the proceedings, Broker sends you a check for $3.28.  You get fucked.  Jim, has the same Broker, and had 1 share of X at $100.  When Broker closes, Jim HAS 1 share of X at $100 and transfers his share to another brokerage.  They can do this with SGOV all the same..... 

Siks10

SGOV pays over 4.4% right now. Park all your money there while you figure out what you want to do. I would buy some of the overvalued indexes because there's a chance they get increasingly overvalued plus when it goes up after next downturn, you may be slow to realize you need to get in again. Then I would diversify into value stocks, DOW, utilities, and international (DAX, FEX, ILF, UAE). Look into other bonds and inverse ETFs

New-Armadillo-1115

SGOV is cool. I had money in SGOV on liberation day and was able to transfer out and buy the dip. It pays like a 0.35% monthly dividend, so your money won't just sit there.

SirGlass

This can be avoided by not holding cash, buy a money market fund or something like SGOV/VBILL

UmpireUnable9026

For the aggressive, honestly i just put in VOO and MGK (vanguard mega cap etf). The rest is my emergency fund with SGOV and VBIL. Set and forget.

Siks10

Don't do drastic moves, especially not too early. Rotate into defensive stocks (DOW components, value stocks, dividend stocks, utilities, etc.), look internationally (DAX, FEZ, ILF, UAE), put some money into SGOV, buy SQQQ when markets drops aggressively. In your 401k, get out of anything "aggressive" growth and make sure you're not sitting on too much company match in company stock The most important is to reverse all of this in the midst of the recession. The upturn comes quicker than you probably imagine Personally I sell lots of options. I will continue to make profit on that but profits will be much smaller than now If we're going into stagflation (which was one scenario in the beginning of the year and looks increasingly likely) it will be difficult to find any investment beating inflation for almost a decade

Siks10

Get into TQQQ aggressively next time it's in the $20-$30 range. In the meantime keep some of what you have and add international (DAX, FEZ, ILF, UAE) and SGOV (park all your cash and $70k emergency fund there)

mikepencethong

Doomer here. Sold everything to buy SGOV after Trump won, and sold all of that a bit after liberation day. I don’t know if it was the right or wrong decision in general, but I was gonna need that money this year anyway and I do not trust this administration to do much of anything positive, even if the market remains at all-time highs. I just don’t trust it. I have felt so much calmer since I sold, I rather let my money rot away by inflation for a few months before I have to use it this September, than having stayed not knowing what was gonna happen. Sure, I lost potential profit, now we know that, but I gained prolongue peace of mind, I am 100% that the exact amount I need is still there, and even my bowel issues improved! I lost money, but I gained so much peace. Also, I’m not in the US, and the dollar has not yet recovered, so I would’ve lost a substantial amount anyway. It’s gonna sound a bit corny, but I consider this a huge lesson in investing that I had ignored all these years until now: no amount of money can replace your mental health. I’m still here, I have my savings and I’m able to use them for what I planned. Call it copium or whatever, but at the end of the day, a huge dream of mine is about to become a reality because I sold. Can’t put a price on that.

Ok-Recommendation925

Is SGOV similar to MMF?

FistEnergy

I sold everything after the election and put it all in SGOV. I sold all my SGOV in April to buy the dip and now I'm like 80% VTI and 20% individual stocks. I'm skeptical that things can keep going up like this, but so far my timing in 2025 has been excellent. The more we go up, the more I want to sell and buy SGOV again.

Heyhayheigh

VOO and SGOV are ETF’s. Any platform will have it. SHOV is for short term, so you would use like savings account or HYSA. VOO is sp500, that is long term. I like Fidelity also, but you already have Robinhood. They both support fractional weekly buy. You will learn along the way.

GhostTigr

From my understanding, VOO is basically RH's S&P 500 ticker? I'm restarting my journey and don't have much knowledge beyond not to invest in meme stocks or random crypto shenanigans. Bitcoin I have a little of though. I know it's not financial advise blah lah. You're saying to drop the others and stick with just RH, yet others recommend Fidelity or other places. Visually, it seems RH is more new-user friendly, where others are a little more in-depth and can get lost in? My idea is to be mostly hand-off and that eventually I'll have a nice little 'basket' of money that makes money. I know without putting in hundreds of thousands I won't be looking at anything like not having to work and living off the interest, though that would be my ultimate goal. I started putting money into the Acorns E-fund account because of the 4.05% APY, my bank offers NO interest. I figured why have my money doing completely nothing while it could be doing at least a few dollars? Thanks for the vote of confidence, I want to learn but It's hard for me to stick with a retain stuff now. Hence why I don't know what SGOV is. From a google search, it's short-term government treasuries bonds?

somethingClever246

Pay attention to the 10EMA x 20 EMA (Wkly), as long as the voo 10EMA is above 20 EMA, I am invested, otherwise 4.5% SGOV

Heyhayheigh

Just buy VOO on auto weekly basis from Robinhood. Whatever you can afford. Then work to increase that auto weekly amount. That’s all investing is: spend less than you earn, auto invest, sell only when you have something urgent to pay for, do that every month of your life. Once you have auto invested in sp500 for a while, you will understand how things work. Learn as you go. Bogleheads is great resource. But honestly doing everything longer term investing with VOO and all short term money with SGOV is fine too. I don’t like HYSA, there is no compare to benchmark in historical performance and I find people spend HYSA much more than SGOV. Good on you for getting started though! You will do great! Rome wasn’t built in a day!

Me-Regarded

Don't buy now. Be patient, wait for a good 10% bull back (minimum). Invest in SGOV or something ultra safe while you wait. Even treasury bills are doing 5% still. Better entry points shall come

randomusername8008

I’m doing the exact same strategy but with holding VTI instead of SGOV/TLT. Care to share what ticker for naked puts are you selling?