SGOV

OurNewestMember

I agree that SGOV is a flexible cash management tool, but this >Since there are no transaction costs to buy and sell SGOV is palpably false. Even if the OP wasn't on IBKR where SGOV trade cost for a $1k notional lot is easily 10 days' worth of interest, you definitely will need to cross the bid-ask spread at least occasionally (especially when you are naturally trapped short or long because you don't want to suffer from broker margin or interest). SGOV is still one of the best games in town, but there are times where it's more economical to stay in cash or run a small margin loan rather than trade it or where you should use a TWAP so the quotes don't blow out after hours on you. These are usually not huge amounts -- but don't sleepwalk around the markets for the parasites to leech on you.

deadfishlog

SGOV/SWVXX for the summer 😎

Sad-Side-8704

Idk why you’re getting downvoted nothing wrong with taking some off the table! Just sold half my ETFs moved into SGOV and have defense stocks until things settle

vagabending

Stick your cash in SGOV or similar - short term tbills - you’ll get 4.5% right now and there are no state/local taxes, only fed.

Heyhayheigh

What bank? Do they offer brokerage? Just out in SGOV in a business account in that bank. Everyone has to be on board for VT. But SGOV is no brainer. Next business day is normally fine for moving money in business.

therealjerseytom

> all the talk regarding government overspending that will lead to a larger deficit, high interest rates, etc. scared me (LOL), so sold off all my shares in less than a year High interest rates mean bonds pay you more money. Interest rates rising are, to me, more reason to buy bonds. Yields dropping (and bond value increasing as a result) are the selling or rebalancing opportunity. > I was thinking of doing 1% - 5% initially, and maybe 1% added annually? Why those numbers specifically? Or did you just totally pull that out of your ass? There should be a clear and tangible reason for everything you do. > Anyone else around this age adding bonds to your allocation? I'm also 40. Do I have bonds in my accounts? Absolutely. But they serve a specific purpose, and different accounts have different goals, short-term and long-term. Any investment vehicle is just a tool in the toolbox, and you have to use the right tool for the job. HSA, where I might need the $$ short-term? I have a position of short-government bonds (SGOV) for defensive value preservation. 401k and IRA? No bonds whatsoever; these are my smallest, and longest time horizon accounts and I can go all-in for max growth. Medium/long-term taxable account? A non-trivial position of TLT as an interest rate play for some time in the next decade. Short-term taxable account? This is where I'm generally defensive and willing to give up long-term total return for downside risk protection. Roughly 1/3 bonds, most of which are intermediate treasuries, some municipals, some high-yield. Came up with this allocation with portfolio back testing aiming for no more than ~10% draw-down. I do, in general, think bonds are becoming more of a tool in any toolbox considering where yields have gone and the equity/risk premium tradeoff. But you still have to be really intentional about "Why this asset in this account for this goal?"

weas71

Dividend stocks are okay when you have a ton of cash and the dividends paid can cover monthly bills. I don't have that - I have some MO (okay exposure to weed long term but ppl arent smoking anymore) and SGOV (dividends - bond not a stock though)

Kachowxboxdad

You got in my head a little with a post about data center stocks dying off like they did pre liberation day I went 100% SGOV gang today

Kachowxboxdad

I went all SGOV today! I think unless something odd happens I’ll either wait for an 8% drop in SPY or look for strategic drops if there’s no broad market downturn

Heyhayheigh

Not necessarily. I like helping the getting started folks. 50k depends on the age and how much of a pain they are. Just like most advisors are mediocre, most clients are mediocre too. Often for the same reason: they both believe in magic investments. Investing is behavior, planning, automation, and improvement. Self directed could do whatever I do for them with VOO and SGOV, the problem is they A: they will panic sell B: will not plan to goals C: will not have a mechanism to hold them accountable/push to invest/save more.

Charming_Barber7627

Exactly where I pulled this advice from. Bogleheads have a slight preference for BND over SGOV, but BND has more principal risk to large swings in interest rates. They might also propose slightly more in international and slight less in US.

Charming_Barber7627

I'd put 75% of it in index funds and keep playing with the rest. 70/20/10 split VTI/VXUS/SGOV

Kachowxboxdad

I went 100% SGOV gang today, was previously holding a portfolio full of “momentum” (meme) stocks so I saved a lot of money today even though I had to buy back the covered calls I sold. Thank you Israel 🙏

hgreenblatt

CSP and CC are actually Buy and Hold enhancements... they can work very well, or very badly when you use a cheap stock, collect crappy penny premiums and the stock goes DOWN. Is it Selling Calls and Puts ... not in my book. Also it is LOUSY leverage of your money. Know where this is going and don't like it .. then stop reading. \++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [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) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

Mysterious-Ninja4649

SGOV. Brk b

jarena009

Given stock valuations are stretched, while the new Trump Republican big beautiful bill is set to explode deficits and debt, which will put pressure on Treasury bond yields, pick a treasury bond ETF like TFLO and SGOV, to take monthly dividends, similar to a high yield savings. They're currently yielding around 4.5% annually.

Infamous_Ad8730

Hardly the case with 0-3 month short term etf SGOV as mentioned. Look at the ytd chart and see that the price has only fluctuated between 100.68 and 100.34 all year. [https://www.msn.com/en-us/money/watchlist?tab=Related&id=buo152&ocid=ansMSNMoney11&duration=Ytd&src=b\_fingraph&relatedQuoteId=buo152&relatedSource=MlAl](https://www.msn.com/en-us/money/watchlist?tab=Related&id=buo152&ocid=ansMSNMoney11&duration=Ytd&src=b_fingraph&relatedQuoteId=buo152&relatedSource=MlAl)

ShellfishJelloFarts

!p SGOV

Kachowxboxdad

I’ve been feeling super positive about the market for the last few months and now I’m feeling the opposite, all vibe based. Exited a bunch of positions and loaded up some SGOV, BRKB, and WMT. Also keeping my ASTS, PLTR, TEM, and HOOD because buying back the calls I sold on them doesn’t make sense unless I genuinely think the market is going to croak - which isn’t a strong enough feeling to burn money.

Dontcare18362

Meh, don’t feel bad, my cash sitting in SGOV waiting for the next opportunity

Dracomies

I sold at the first tarriff fakeout but that was essentially 4 years of gains. Today I'm invested a lot in Google. And I have a lot in SGOV.

Infamous_Ad8730

You shouldn't lose principal in short term bond etf like SGOV .

qqqqqx

Park it in SGOV, reinvest the dividends, collect about 4.6% annual yield. Will basically always match the best HYSA rates, very liquid, stable and safe. I trust it a lot more than opening a HYSA with some no-name online only bank that offers a comparable rate.

skettyvan

SWVXX or SGOV will net you around 4% annually, presuming the US bond market doesn’t shit the bed

InvisibleEar

What he's talking about doesn't affect ultrashort durations. You can see yourself that SGOV hasn't moved at all from these antics.

Days_End

> You have to recognize that the market is only now just about up to the levels we sold at in Feb. Even if I were to buy back in now, I'd be a wash on capital appreciation, plus I took SGOV dividend for the three intervening months. I mean unless you had nearly zero gains you're actually behind since you realized profits you now need to pay taxes on. If you say 401k or whatever no one cares about your pennies.

hgreenblatt

They are liable to revoke your Reddit Card if you do not pray at the Altar of TA. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [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) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

keith1301

I sold very early March and moved everything to SGOV and dodged the drop, but I have only started dipping my toes into equities again. For me, it comes down to a simple bet: Trump will eventually break something that will do a huge amount of damage. I have no details on what, when, or how. We are very early into his term and just look at the chaos. He has no guardrails this time, is basically legally invincible, and is drunk on power. Plus, all he does is lie. No one can trust a thing he says. I think you are all fools to be investing into this current market but good luck to you. Don't celebrate too soon though, we have 3.5 more years of Trump dancing in a minefield.

__redruM

SGOV is zero risk and not part of a historic bubble. Take a look at the second chart with the inflation adjusted numbers: https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

TheGRS

I didn’t cash out all my portfolio, that seemed like a bad idea, but I did cash out some profits from a few companies that were doing very well. My overall opinion hasn’t changed about the tariffs, it’s also worth noting that the Trump administration has changed their policy many times in the last few months. If we stayed the course from Liberation Day I have no doubt the market would be way down. My strategy all along was to DCA the money I took out weekly, I started doing that about 3 weeks ago. I also put more into SGOV. Overall I think this is a good strategy for how unknown and unfocused the tariff policy has been

Chromosomaur

Investment account and a money market fund. I don't understand why anyone would take the interest hit from storing money in a savings account. A good money market fund is SGOV which pays out the Fed Funds Rate (appx - it actually pays out the 0-3 month treasury rate) minus 0.09% fee.

Basis_404_

Back in January I moved 30% of my portfolio out of stocks and into cash because I needed to preserve its value and volatility looked like it was on the horizon. I left the rest alone and continued my automatic investments. My YTD return on the money I moved to cash is even with the market now but I was ahead for the most of the year with a zero volatility so I take that as a win. I’ve been DCAing the 30% back into equities a little bit each day for the last couple months so picked up some of the upside gains but I’m still not sold there isn’t another dip coming so I’m not putting it all back in since capital preservation is still the primary objective with that money. I’m more than happy to keep collecting 4.17% interest in SGOV with that money. So overall, I’m satisfied with the strategy and results.

catastrapostrophe

You have to recognize that the market is only now just about up to the levels we sold at in Feb. Even if I were to buy back in now, I'd be a wash on capital appreciation, plus I took SGOV dividend for the three intervening months. Look, you're being very optimistic that this whole tariff thing is going to completely go away. We aren't even through the "90 day pause" which is scheduled to end in early July, without nearly the pace of negotiated deals that would put us on schedule to have normal agreements by then. (You might remember that it wasn't the initial announcement of tariff's which really tanked the marked back in March -- it was the end of the "30 Day Pause", at which time there were not deals in place.) And even IF deals do somehow get dramatically accelerated between now and July, the average tariff rate we're going to end up at is going to be higher than it was before all this began. Higher tariffs will be seen in corporate earnings, lower corporate earnings will make PE ratios look even worse than they are now, high PE ratios will affect longer term stock prices. Any way you slice it, fundamentals are worse now than they were at the beginning of the year.

VegasWorldwide

close to 13% YTD overall mainly from buying the dips in April like NVDA at $85, META @ $495, $COIN for $150, GOOG at $143, AMZN for $160 and of course VOO at $444. The growth in late April through today has been something I never expected. Reddit posts were saying it was going to take years to get back to ATH's. I will admit with growth this fast, today I shaved some profits, about 7% worth and placed it in SGOV.

StagedC0mbustion

$SGOV has better guaranteed returns than your HYSA

Ambitious-Egg-8748

And how old are you now? At the very least, I agree with what you suggest: I don't see the point of JEPQ/dividends at this point. Aim for either growth or stable market growth - dividends will not outperform either of those nor serve you right now. Not sure what rental properties you are aiming for or if you are trying to invest to save up for rental properties. If you are trying to invest for that, you may want to be a bit more conservative and at least put a portion into an ETF like SGOV.

1shotted

What is your definition of "cash?" If it's SGOV and deposits on futures contract then I'm 100% cash.

noplanman_srslynone

Just find something not hedged against the USD. IGOV would do it, SGOV for international bonds. Good mix of global currency etc. GLD, SLV are metals. You don't you though

quuxquxbazbarfoo

Ah, treasuries are exempt from my state's income tax so I was looking at it from that angle since you also mentioned SGOV.

mykesx

I ran several corporations and my investors practically demanded I invest any cash in CDs, treasuries, money market, or something like SGOV. The idea is NOT to invest for growth but to obtain a yield on the cash. If we were going to invest in a company, we would be talking acquisition, not stock market. FWIW

royofhollywood

if you're in a margin account you still have 50% of your treasury allocation in buying power, however if you use more than your cash on hand in trading, you'll be charged interest from your broker that exceeds interest you earn in SGOV. Since there are no transaction costs to buy and sell SGOV, I would just sell some if you ever needed it to cover another position. I typically only use 50%- 60% of my buying power, and even then only when VIX is above 30. With the VIX below 20, my recommended buying power usage is more like 35%.

Icy_Mushroom_425

If you haven't touched this cash in years, you're being too conservative. Idle cash loses value to inflation. If the business hasn’t needed it in years, allocating a portion to low-risk yield generators like SGOV or even VT makes sense. Your plan is reasonable, but consider the business's risk tolerance and liquidity needs.

Charming_Mushroom_70

I likely will do something similar but with FZDXX. My original thinking was SGOV and VT are a little more tax efficient.

smartfon

>VT You could be forced to hold that 10% potentially for a decade to avoid losses. Are the co-owners aware of the risk? >One of the owners wants it only in a money market That settles it, doesn't it? The Vanguard Federal Money Market Fund currently pays 4.20%. If you invest $40K in SGOV your real yield on that 40K is going to be -- very approximately -- 0.5% higher, so that's like an extra $200 per year compared to keeping everything in the money market fund. Is that $200 worth dealing with complaints from the co-owner with strict requirements? You decide, but don't wind up in this situation: https://youtu.be/xAlCbE-yCTw?t=114

TakingChances01

Put it all in the money market, or if you’re in a high tax state put it in SGOV for the state tax exemption.

Proof-Conference-765

Are you a day trader ? If so place your cash in SGOV And trade options You will make more money and reduce risk on over valued stocks

smashnmashbruh

I would keep 45K on deck minimum and put the rest of the money market account. Having the cash available is more important than maximizing profits. What you can do as well as run a model on what you have to gain by putting the money into a money market account versus CD versus SGOV and you could present that to them and say hey if we were to go SGOV, we would be very tied down, but we would’ve made an extra $2000 a year over a money market, which would’ve made $2000 which is $1800 more than we did make. I would estimate 4% versus 8% but you run the risk of having to wait the market out to take the money out. To be honest, having the cash available and being risk adverse has huge advantages over the minimum amount of money that that cash would be making.

weasler7

10k is not a lot in terms of real estate expenses, but consider that there may be a common systemic risk that causes both a decline in VT and a reason for you needing to use your cash reserves. If you think you only need 90k instead of 100k as a cash reserve, just call it what it is and decide to only keep 90k in reserves. In my mind, short term government debt (SGOV) and money market funds are basically the same thing.

__redruM

What ever you do will have tax implications so make sure your accountant is on board. SGOV make sense, but keep in mind it may take a day or two to transfer money between the bank and Fidelity. VT really doesn’t make sense for cash reserves.

smashnmashbruh

I like SWVXX as someone else mentioned. Here are some additional thoughts. Is 100k reserve accurate for your business needs? I put 3 months of potential needs in there and the rest is distributed to owners and or invested individually. I wouldn't invest money with multiple owners and a business. As mentioned you could distribute it to each owner, who can do what they want, each owner (say 4) is required to keep 25k liquid, then you can put yours into SGOV and they can do a savings account or money market or cd ladder. This would be easier than investing it as a business. CD Ladders require management and are not something you can initiate liquidity.

greytoc

Yes - we do this for our business. What does that owner thinks that "only in a money market" means? A bank money market account is not the same thing as a money market fund. Are they asking about a money market fund? Bear in mind that at Fidelity - many of the money market funds are restricted only to natural persons. So what that means is that business account cannot park money in a money market fund except (1) the default money market fund or (2) if you meet the minimum investment requirement for an institutional money market fund. For our business - I prefer to ladder short-maturity treasuries - but yeah - you can just use SGOV if 30 days works for you. If you decide to use Fidelity or another broker - it is helpful if there is a branch office that you can use. There are some things about a business account where being able to go to the branch is very helpful.

creemeeseason

Not sure why more people don't think of this with dividends. SGOV is paying over 4% with basically zero risk. Even if rates fall, they fall slowly. Dividends are fine, just buying something for a high dividend induces a lot of risk.

wtf_is_up

That chart looks hellish. I'd rather have SGOV.

NationalOwl9561

SGOV. But I use Schwab accounts for that.

Charming_Yellow5867

He's looking at SGOV and trying to guess when it's gonna break out.

JaxTaylor2

$SGOV

royofhollywood

Just use SGOV or BOXX

Hail_Zeus

SGOV

ThinkingOfTheOldDays

Ticker SGOV or your banks savings account vehicle, make sure you get paid the market interest rate though. 

helloitsmehb

SGOV and chill

ILikeCorgiButt

How about holding SGOV shares that can net 4-5% interest and then sell CSPs using that as collateral?

Heyhayheigh

Emergency fund in SGOV. Get into the habit of VOO on weekly basis for what you can afford. All personal finance is the same: income vs expenses vs automatic investment. Have an emergency fund. Sell only when you have something urgent to pay for. Simple. Yes there is Roth. Yes there is 401k. But the discipline of auto is the key. Best of luck.

Heyhayheigh

If you are certain you will spend in 7 months you should sell and put in SGOV. That is just how money works.

_Kramerica

It’s kind of hard to say without knowing what the investments are. If you know you have to withdraw the money, I’d sell the investments inside the IRA to lock profits now and then invest that into something like SGOV in order to get guaranteed returns.

Heyhayheigh

Dude, relax. Glad to hear your long term investment isn't SGOV, lol. There was no condescending, you're just sensitive. You literally said IRA AND SGOV. There is no real difference between rollover IRA and just regular traditional IRA. For all intents and purposes they are the same. You not knowing that makes it easy to think I was doing you a solid by saying get some pro help. Best of luck out there.

Apart_Olive_3539

If you read the gist of the post, the solo would only be a secondary IRA with SGOV instead of using a HYSA. If getting an average annual return of 11% over the last 25 years on our self made elections is ignorance, well then so be it. It was a simple question that didn’t require a condescending answer.

DefinitiveChaos

If you may need the money in the coming years, it is probably best to place the money in a high yield savings account where you'll earn \~4%. You could also open a brokerage and place the money in a safe money market fund (e.g., SGOV, SNSXX, SWVXX).

Heyhayheigh

IRA in SGOV? Find a trusted pro, your ignorance will cost you more than the management fees.

hgreenblatt

Yes and No. Buy and Hold and CC/CSP is lousy leverage, esp in a Cash account. You tie up all your capital in a stock that can tank. Actually you are only using the Put because you think that if a stock is selling for 150, and you sell a Put for 100 and you get assigned you will be happy. Maybe , but if the stock is selling for 50 when Put the stock at 100 , I doubt you will think it a good deal. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [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) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

MutaliskGluon

It's just one stock that I'm in, super overweight it (40% port) and the other 60% still in SGOV. RAWR bear attack coming soon

OurNewestMember

>Every month, I deploy 1/12 of the yearly yield (\~$191) into leveraged call options (e.g., targeting 5× exposure to NASDAQ or S&P 500). • I buy 2–3 month expiry options, but roll them monthly to avoid late-stage theta decay. Concept seems pretty reasonable. Were you thinking just outright long call options, spreads or something else? What kind of strikes? I think this is the critical part of the campaign. Also, the 2.3% yield seems icky when you are looking to (I assume) buy call options which would be denominated in USD and priced at 4.1%. I would look into converting some extra CAD to USD and going for at least some of the 4.1% yield (it's common for people to buy US ETFs like SGOV/BIL/etc or short-duration treasury bills) while seeing if I could get an acceptable hedge on rising CAD.USD. Maybe I would feel that I could do some of the 4.1% yield unhedged for forex due to undiversified CAD exposure. I don't know. But I would also look into the forex exposure to understand the cost/benefits.

valazendez

I'd split it in 5 and put 20K each in CALM, AMZN, O, COST, CMI. I might switch the equivalent amount in my other accounts to individual stocks and put all of this into SGOV with DRIP then do a steady withdrawal.

Kachowxboxdad

You may want to check out SGOV

teckel

SGOV, enjoy!

anywhoaroundhere

Thoughts on PLTY versus PLTW? MSTY was my first Yield Max purchase. Moved from SGOV to MSTY prior to ex-dividend date. Now on to PLTY, then back to SGOV. Might move only between SGOV and PLTY next month.

SpartyNash

I have some larger spends I could see happening in my life in the next few years so I accounted for those items and sold VTI to buy SGOV to eliminate any risk. Otherwise I’m still in VTI and VXUS and going to hold those forever most likely.

Kachowxboxdad

30% drawdown on options and you break your desk? You may just be an SGOV guy but be careful it resets price monthly you need the warning for the big drop

ShellfishJelloFarts

!p SGOV

DSCN__034

They are literally the same thing. https://totalrealreturns.com/s/TFLO,SGOV?start=2014-10-05

therealjerseytom

If you're in the US, and if this is going into a taxable account, you could put it into something like JMST. Municipal short-term equivalent of SGOV. Should be safe for principal value, and you don't have to worry about federal tax.

FxHorizonTrading

As for cash / cash like investments, there are basically 2 options HYSA, and money market funds e.g. SGOV in the US Depending where you reside, you have *some* tax advantage with a MMF compared to a HYSA e.g. in the US, MMFs can be state tax exempted as they hold Tbills How big that advantage really is, you gotta google / ask chatgpt / a tax advicer Canada, as example, doesnt offer a tax advantage between HYSA and MMF, in europe it depends again on the jurisdiction..

LionRoars87

Just buy SGOV. 4.2% div yield and no risk. Free 1.2% on $50k for you.

hgreenblatt

If you have 50k then CC and CSP are LOUSY strats. There is just no leverage. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 90% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [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) [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

Kachowxboxdad

I dunno he may wanna check out SGOV

MaxwellSmart07

76, Retired, Holding only $50k in SGOV Roth. Liquidated entire brokerage account and my HYSA into an investment outside the stock market.

fallingdowndizzyvr

Yes. SGOV, HYSA and MMF are all considered cash.

xiongchiamiov

Classic answer for that is SGOV if it's less than 5 years away, VTI+VXUS if further. Realistically you can add more nuance to the specific investments as well as a balance between the two styles depending on how flexible you are with the timing on buying, and your general investment preferences.

AffectionateLeek5854

USFR or SGOV ( no state tax)

KemShafu

The market was over priced (as a whole) at the end of 2024 as is. I am 80% in SGOV and FEQTX and the rest in European ETFs. YMMV.

SystemRude5372

is SGOV consider cash? Should I sell them and just buy ETFs?

SirGlass

I mean short term treasuries or money market funds or ETFs like SGOV/VBIL are pretty much garanteed

Sea_Tack

Fucking tired of hearing Charlie Munger and Warren Buffett dragged into people's BS investing "strategies" like "switching between SGOV to S&P500 Index whenever the CNN Business fear Index is at Maximum Fear. And Pull it out and shove the cash back into SGOV when it everyone is at Max Greed" You are providing a fantastic example of doing what Warren Buffett would never do.

callidus7

Buy low, sell high. If growth is hitting ATH it's too late to buy the dip. I'm a similar age. Almost 100% growth. The only "dividend" fund I have is QQQi (and SGOV for the bulk of my emergency fund). If a dividend stock/etf nets you 5% cash and 3% growth, and a growth stock/etf nets you 10%...you are better off with growth. I have made the most money historically when people were fearful and I was buying VOO/VOOG/etc cheap. Don't listen to short term noise.

Strange_Cabinet_5673

Basic etfs. Either S&P index funds (VOO, SPY) or total market index funds (VTI, VT) plus bond funds (BND, BNDW, SGOV, etc.) just depends are your goals and risk tolerance

steak5

After 10 years of investing, I finally reached the same conclusion as you did this year. I don't need to check my Portfolio everyday. Now I Just throw all my Cash into SGOV and let it collect 1 penny per day per $100. Just wait for a huge correction, seem to happen every 3-4 months. Even collecting few hundred bucks interest a month is not bad when market is flat lining.

Leungal

You're missing the last step where at the end he has a $24,000 liability, and also missing the high risk involved in taking loaned money and investing into the market. Let's actually take the $24,000 number and work through the math, but I am now going to remove all the "excess" numbers, the numbers I've said are obfuscating the math and the results. We're considering only the loan and only the loan here: Our hero does exactly what you describe. Plops the $24k into SGOV, withdraws $400/mo and turbocharges his retirement savings. Like I've said before, TSP matching is not considered here because he is already getting it from their baseline retirement savings. This is the end result after 5 years: * $3600 paid in interest (assuming 60 payments of monthly rate of 0.25%) * $2726 left in the SGOV account (this is the growth from interest in SGOV assuming 4% interest) * $24,000 invested into the market + growth. If we take away any and all market risk and just consider a baseline 8% growth and the fact that this is tax-free, his investment will have grown into approximately $29,340. * He still owes $24,000 So sum it all up. He has made a grand total of... $29,340+$2726-$24,000-$3600 = $4,466 after his 5 years of effort. Divide that number by 5 and we get $893/year in extra income, or $74/mo. Numbers aren't that high but hey, it's free money. But this is the case where he is all-inning the loan balance into a total market index fund and assumes 8%/year growth. That really isn't how the market works, so lets now take a not-catastrophic-but-not-great market, where over the next 5 years the market ends up exactly flat. The numbers are mostly the same, except his retirement account no longer has any growth and stays at $24,000. Add it all up and he is now underwater by $874, losing $72/year. And now consider a catastrophic scenario, where his retirement account drops 20% over the course of 5 years. This is actually pretty common throughout history - in this case his $24,000 investment has dropped to $19,200 and he is now underwater by $5,674. And finally the "guaranteed safe" scenario where he's just arbitraging the risk-free interest rate against his loan interest - can ignore the retirement account entirely, in this scenario he could just buy a 5-year treasury or a CD, lock in the current rate of ~4.2%, and use his monthly interest payments to pay the loan interest and pocket the extra. This amounts to a before-tax gain of $24,000*(.042-.03)=$288/year or $1,440 total after 5 years. So assuming normal, average market growth, you are really just making an extra $3,026 after 5 years compared to the risk free rate. And there is a lot of risk involved here - this is just market risk, we've discussed all the other potential failure points ad nauseam so I'm not going to repeat them. Hopefully this illustrates my point a little better. You need to remove all of your financial planning aspects and other numbers to really isolate the potential gains and losses. You also need to compare your scheme against the "risk-free" scenario to see the actual gains.

xiongchiamiov

The specific way it'll happen depends on the timing because of how SGOV works, but you'll be taxed on the $2664. Fwiw, that's the same as it is with a bank account, and with stocks. For stocks, you're taxed on _gains_, not the dollar amount at the end, which is why you need to care about _cost basis_ (how much you paid for it).

ElectronicMusicianDA

Thanks for the help! I mean like if I do the following: Buy 100k shares of SGOV. Hold for 6 months (I’ve made about $2000 in interest). Then I sell. Wait 4 months buy another 100k make 2 more months of interest. So in all I make about $2664 in interest for the year. Is that all I am subject to in taxes, the capital gains or can it cause a tax implication? Also is SGOV better than just choosing a a HYSA like Roger?

xiongchiamiov

>What’s the difference between just putting my money into SGOV vs a HYSA? Other than the state tax thing, they're very similar. There can be small differences in usability, yield, and risk. >I like to be very liquid at all times so if I were to go back and forth and buy 100k in SGOV, enjoy the interest, the sell it all in 5 months. The a month later I decide to put 100k back in? I’m only responsible for interest amount or the whole 100k? What do you mean by responsible for? If you're talking about taxes, you'll pay taxes on dividends as they come monthly and capital gains when you sell. With the way these funds work, there should be very little in capital gains (or losses).

steak5

You need to watch some Warren Buffett Interview and take his advice to heart. Problem is you over complicate ur analysis. Charlie Munger said "You don't need to invent some complex strategies to be successful, the key to success is actually keep it as simple as possible". I been switching between SGOV to S&P500 Index whenever the CNN Business fear Index is at Maximum Fear. And Pull it out and shove the cash back into SGOV when it everyone is at Max Greed. Best way to win money is first to ensure you don't Lose.