SGOV

Recent-Astronaut6115

Is SGOV going to be safe?

Bronze_Rager

Down 16% and you're crying? Have you thought of buying SGOV?

FrankDrebinOnReddit

My international exposure is just broad ex-US equities, the not-very-exotic VXUS. I'm choosing to keep the cash that I have (my emergency fund) in US short-term treasuries (SGOV). The dollar dropping doesn't bother me since I'm a US investor with USD liabilities, and since it's my emergency fund I'm not willing to use it for currency speculation.

Dracomies

SGOV.

TWSTrader

**Spent a decade on the buy-side here.** The "Foreigners are Dumping Treasuries" headline is the oldest scare story in the bond market. We see it every cycle. Before you rotate into International Bonds (BNDX), you need to understand the mechanics of *why* you hold bonds and what BNDX actually does. **1. The "Dumping" Fallacy** When China or Japan "dumps" Treasuries, they aren't doing it because they think the US is going broke. They are doing it to **defend their own currency.** * *The Mechanic:* They sell Treasuries (USD) to buy their own currency (Yen/Yuan) to prop it up. * *The Result:* Yields might spike temporarily, but the US Bond market is the deepest, most liquid pool of collateral on Earth. When yields spike, US domestic institutions (Pensions, Insurance co's) step in to lock in the higher rates. It self-corrects. **2. The BNDX Trap (The "Hedge" Cost)** You asked about BNDX. * **The Problem:** Vanguard's BNDX is **Currency Hedged** back to the USD. * *Why this matters:* You are buying European or Japanese bonds (which often yield *less* than US Treasuries) and then paying a fee to hedge the currency exposure away. * *The Math:* You end up with a portfolio that behaves very similarly to US bonds but often with lower yield. You aren't getting the "Dollar Crash" protection you think you are. **3. The Real Risk: Duration, not Geography** If you are worried about US fiscal dominance (debt issues), the risk isn't that the government defaults. The risk is that they **inflate** the debt away. * *The Liability:* Long-duration bonds (20+ years) get crushed by inflation. * *The Fix:* You don't need to go International; you just need to shorten your duration. * **VGIT** (Intermediate) is the sweet spot (5-7 years). * **TIPS** (which you already own) are the *direct* hedge against the fiscal irresponsibility you are worried about. **My Take:** Don't overcomplicate the fixed income side. Foreign bonds (especially hedged ones) often just add correlation without adding alpha. Stick to your US Treasury/Muni mix. If you are truly paranoid about the US debt spiral, the answer is **Gold** or **Short-Term Bills (SGOV)**, not German Bunds.

timhottens

No, SGOV is very short term 0-3 month bonds, there's no duration risk like with 10 year and 30 year bonds, and it continuously rolls into whatever the current short-term rate is. It acts more like a cash equivalent than a traditional bond.

Scared-Signature-452

I have money in SGOV, is that a good thing or a bad thing considering all this?

Jeefcbus

Thank you, yes a few keep mentioning SGOV

NoRecommendation617

Bonds are no panacea. Take a look at the Vanguard Total Bond Fund (BND). It's down from around $87 to $74 over the last 5 years. However, it pays a 4.3% dividend yield so probably closer to break even over that time given the yield. If you get in a shorter-term bond fund like SGOV you can still get most of the yield without taking the risk of loss that a longer-term bond fund would expose you to.

Kachowxboxdad

Feeling a little more bearish today, took 42% of port to SGOV to see if I can rebuy lower I think QXO is a steal right now but my exposure there is through the roof so I have to wait

After-Question3165

I wouldn’t even bother with treasury bonds. There are plenty of ETFs that are basket of short or medium duration bonds that pay you monthly dividends without the hassle. SHY, SGOV, BOXX(1-3 month but reinvests the dividends back into the fund), WEEK are all good options

SirGlass

I mean if you simple lump sum contribute and invest at the beginning of every year you are somewhat DCAing just yearly However considering lump sum investing beats DCAing about 2/3rd of the time; and its almost impossible to tell if today its better to DCA vs Lump sum, if you simply invest at the beginning of every year for 30 years you will almost certainly come out ahead vs DCAing through out the year However you could just buy some money market fund or something like SGOV or VBIL if you wanted to earn some interest

whicky1978

I would’ve been better off buying SGOV 😜. My positions have included TQQQ, TECL, NVDL, GLD, BAR, SOXL and USD. I swap out similar assets sometimes to get around the wash sell rule https://preview.redd.it/9amdyxjqupeg1.jpeg?width=1170&format=pjpg&auto=webp&s=1b7ed045f4f632f461d967574e3ccc84b9621a80

C130J_Darkstar

Put your money into safe havens, SGOV and OKLO

dvdmovie1

Probably not a popular opinion but imo 42% SGOV is more "too heavy" than gold at 18%. I also think there's something to alternative strategies like some of the AQR funds, but again - probably not going to be a popular opinion on here.

DirtbikeForLife

Great post. I invest in VTI and VXUS. My cash sits in SGOV. Moving $7k into VTI tomorrow and $3k into VXUS. Dollar cost average on big dips and moving on. :)

Encryptidd

Do you have an emergency fund? If not, I’d start there. The typical recommendation is 3-6 months expenses in something liquid like SGOV. After that, given your age, something simple like VOO + VXUS so you can diversify across the US/international market. If you want boring set and forget investing check out r/bogleheads

Heyhayheigh

VOO and chill, buy auto and weekly, gamble with the amount you need. Sell only to pay for urgent expenses (not panic sell). You can optimize with backdoor Roth, but honestly just using taxable is fine. SGOV for emergency fund and large known expenses.

BagHoldersOfAmerica

Lmao whoa careful might beat SGOV doing that

C130J_Darkstar

Time to diversify into safe, stable assets- SGOV and OKLO

MutaliskGluon

QQQ puts when QQQ is deep red and EOSE long which is green. Damn 2026 has been baller af up 27% YTD. (selling QQQ puts for a gain and throwing that back into SGOV)

FrankDrebinOnReddit

Sure, but in terms of currency dynamics it works like holding cash. When the dollar weakens against the yen, that applies to your SGOV holdings in the same way as to the cash under your mattress.

MaxwellSmart07

Only approx 7% of my money was in stocks so not very significant. And Yeah, bad timing. I could have stuck it out a few weeks longer, but I had a deadline for another non-market investment to get into returning a fixed 12% so I sold my stocks, but am holding 10% of the 7% in SGOV which is essentially my emergency fund.

FrankDrebinOnReddit

SGOV is US sovereign debt denominated in USD, so it is USD.

Specific-Objective68

Buy some euros or francs or krone along with some gold and silver. I'm actually relocating to pivot careers in fall 2027, so this is vital for me. I also have SGOV instead of USD, which is fine for now, but may change depending on circumstances.

Heyhayheigh

What do you think it’s going to do in cash or SGOV? It will guaranteed be eaten by inflation. Find a trustworthy pro and map out your future. Investing doesn’t end at retirement. Is the plan to die broke? Open a Fidelity account and buy VOO on an auto weekly basis. If you don’t to it, hire a Fidelity advisor to do it for you. If you have kids, teach them to put a higher importance on financial education sooner. You’re still young. But you need to get on this. Best of luck!

FrankDrebinOnReddit

Closer to 1%. Inflation is around 2.7% and SGOV's 30 day yield is 3.63%.

StatisticalMan

There is nothing to explain. The real (inflation adjusted) return on cash invesments (i.e. HYSA, MMF, SGOV, t-bills, etc) IS roughly 0%.

StatisticalMan

The DXY has nothing to do with the prices you pay at the grocery store. Inflation (CPI) does. If you were a multinational corporations then yeah you likely should hedge your costs because they aren't all in dollars. Real return on cash is roughly zero when measured over decades. Sometimes slightly positive sometimes slightly negative. If you have cash in SGOV you are taking a 5% annual loss in purchasing power. Your purchasing power is essentially flat. It goes up nominal 4%, prices go up about 4% you are exactly where you started.

PizzaCatTacoUno

A few subtle methods … diversify, change from high growth stocks to value, allocate more bonds like investments into your portfolio (SGOV treasuries, JEPI… these are investments with lower beta, so if the stock market drops, these take less of a hit). I’m sure the $10M plus club do many other things as well, that I’m not aware of

Zippier92

is SGOV safe?

Rav_3d

Even if you put it all into SGOV, a 99.99% safe fun exempt from state taxes, you will outperform 2.65%. It makes zero financial sense to pay off a mortgage at such a low rate.

Good_Ride_2508

>But with **so many people speculating** that the stock market would stop doing well soon, would bonds be a good hedge or should I invest in Berkshire Hathaway or just keep cash?  As you said, it is speculation, may or may not be right one as no one can predict the future. Bonds will do nicely only when stocks are going for correction cycle (range 10% to 20 or more). Other periods, they are really dull except the dividends/interest they pay. You can watch TLT (long term) or SGOV (Short term). Better is Berkshire, they also drop when market corrects. Cash won't produce except broker interest (if they pay, check with your broker) Gold may do well like bonds when stocks are in correction mode. Or Stay invested in VOO BTW: This is shared for analysis purpose, watch these and understand, then decide whatever you feel like.

deadfishlog

Dang I went 75% cash on Thursday hallelujah SGOV + dry powder ftw this month

charleswj

None of those are valid reasons. If you're saying "because now you can't access it anymore", that's incorrect. Just like a savings account, you can always remove your contributions. If you're saying "because you can earn interest in a savings account", that's incorrect. Just like a savings account, you earn interest (if you invest in safe options such as SGOV). If you're saying "if you invest it, you may lose money when you need it", that's incorrect. Just like a savings account, you can't lose money (if you invest in safe options such as SGOV). All other things being equal, a Roth IRA will actually earn more money than an HYSA because ant interest you earn is exempt from taxes if you don't withdraw it. And the only way you'll withdraw it is if you withdraw all your previous contributions first. The *only potential* downside to putting EF/savings in a Roth IRA is the small penalty you may pay if you do withdraw all contributions and then growth. You'll pay a 10% penalty on the growth portion. If you contribute $7.5k, invest in SGOV, it grows for a year at 3.5%, and you withdraw all of it. You have $262.50 in growth, which is taxed at your marginal rate (remember, this would happen no matter what in an HYSA, so it's a wash), plus a 10% penalty of $26.25. So $26.50 is the worst case, and that only if you have an emergency and have to withdraw everything. If you don't touch it (which is usually what will happen), you'll save the marginal tax ($31.50 @ 12%, $57.75 @ 22%) that you'd have lost in an HYSA. >debt Not sure what this means. You have debt you're paying off? Well then you don't have *that* cash to contribute, uh, because you paid it already. You do still have it? Why? You're accruing interest. Go pay it off, dummy!

Heyhayheigh

Don’t participate in markets: enjoy your vow of poverty. What the people at the top do doesn’t change your plan. SGOV for short term cash, VOO for long term. Don’t panic sell. Plan doesn’t change.

usa_reddit

If you want returns, gold and silver are not the play right now. If you want to keep your cash safe SGOL is a decent place to put it, but for stashing cash SGOV is a good play right now as an inflation hedge.

SlimPolitician

Sooo,,,does it still make more sense to get a slightly higher APY in a HYSA? I live in Maryland, will I actually see a savings on taxes from SGOV?

IdioticPrototype

Yeah, the 3% IRA match is an easy $225 plus you can put the $1k free margin in SGOV or similar to offset the subscription cost. 

Christopher_Ramirez_

Congratulations, you won the game. Now turn off the console. 80% SGOV 20% VTI. Live off the interest.

jadensemiller

Much appreciated! I actually have this portfolio, but my funds are elsewhere. I hadn’t heard of SGOV until just now, so I’ll probably park my cash there

jadensemiller

Oh, that’s very helpful. I hadn’t heard of SGOV, and I was trying to find something just like that before I decided to ask about this. Thanks a bunch!

leaning_on_a_wheel

Don’t invest your down payment. Use SGOV, a money market fund, etc.

usa_reddit

Here is my stack since 12/29/2025 SCHG 45% SCHD 25% SGOL (Just bailed after making 6%) SMH 20% with a 15% Trailing Stop GOOGLE with a 10% Trailing Stop (totally speculative, I think they are going to own AI after the bubble bursts, probably going to sell and wait until the next dip) SGOV (Parking cash here for dollar cost averaging and buying dips) VYMI (Just sold after making 2.5%) COF (Bought it when dropped 10% on Trump's push to 10% APR on Credit Cards, already made 3%, did a sell to cover) The S&P returned 1.5% this year and I am already up 3.5% I am not going to VOO and chill. I am going to be aggressive, buy the fear like COF, chase the SEMIs, and chase the growth with SCHG then use SCHD to keep plowing dividends back into more cash and stock. So far I have beaten the market nearly every day of the year (NASDAQ, DJIA, S&P 500) including today which they were all down and I was still up .07% I am not fanatical about it but watch it at least every couple of days and trade at lunch based on news. My goal is to hustle 20% or better this year and I have 16.5% to go and 3.5% just at Jan 16th isn't too bad. My macro investor friends keep screaming about the Schiller Cape and are predicting a crash around August-December timeframe 2026. Everything is so dynamic right now it scares me a little.

Heyhayheigh

You have it backwards. Roth should have your riskier plays. Taxable brokerage should be boring old VOO and chill. Buy VOO on auto weekly basis. Sell only when you have an urgent bill to pay for. If you’re going to stock pick, leave those long term in your Roth. But honestly everything should be auto. Taxable should have VOO and any SGOV for emergency funds and large known purchases.

MaybeTheDoctor

A broker accounts and you buy either SGOV (t-bills) or BND / FBND (bonds). Emergency funds now get 4% interest and have next day liquidity to cash.

Philarete

> Or just use short term bond ETFs. For those interested, good examples of those are VBIL and SGOV.

ultrachem

SGOV about to get drilled in the anoos once mango invades Greenland

No-Sympathy-686

I should close everything and put it in SGOV for the remainder of the year and crush the market returns for the year... But I wont.... https://preview.redd.it/a2dvtz7o1sdg1.jpeg?width=1080&format=pjpg&auto=webp&s=975007db9be5b0584948e5f1b7dbb680bbbe3f78

Nuvuser2025

Just bought 70k worth of SGOV because I don’t fuck around.

Independent-Drive-32

Here’s what you should do: 1) Sign up for Gold and put those funds into an IRA and get the match. *Make sure you then invest the funds in an index fund like VOO.* 2) In the Gold brokerage account, take advantage of the free $1000 margin. Use the HYSA funds you have plus the margin to buy SGOV. (So if you have $750 in savings, then buy $1750.) This will lead to comparable growth as an HYSA. 3) Apply for a Gold credit card. If they give it to you, this will be 3% cash back on all purchases, which is a better deal than you’ll find anywhere else. Put all your purchases on this card and *pay the credit bill in full every month without fail.* Note that re: 3 they may not give you the credit card. And that re: 2 there will be a margin maintenance requirement; while the $1k margin is free, if you don’t have any other funds in the account they can still prevent you from this strategy, meaning just holding the money in cash in the account is fine. Ask the Robinhood support how this would work in your specific scenario.

Tasty_Panda_8264

It makes no sense to pay a subscription for a HYSA since you can get one for free anywhere else. Or just buy SGOV or a MMF inside of a brokerage. The 3% IRA match is just a way to keep you locked in RH since every dollar you contribute has a 5 year vesting period for the match IIRC.

yourwebg

I use SGOV, but also keep some cash in a HYSA for this reason.

yourwebg

I was going to mention that, but you made it sound like you needed it to be more liquid. Another benefit of SGOV is that you only pay federal income tax on the dividends, unlike HYSA where you also pay state and local tax.

IdioticPrototype

I'd say it's fine if you want to use it as a HYSA, then. I'D maybe put loose cash in SGOV instead, but I stay almost 100% invested. 

cdude

you understand that there's no capital gains on SGOV since the price is locked at $100 and all the yields are paid out as dividends. Even then, interests from HYSA are taxed the same, even worse than SGOV if you have state taxes.

yourwebg

Why not get the ETF SGOV? It pays 3.7% APY monthly as dividends. Not quite as liquid as HYSA, but might be something you would be interested in.

UndercoverOptions

I have a Schwab account and do mostly short puts. I literally put all of the funds into SGOV. If I expect assignment I’ll pull enough out to cover. If I get a surprise assignment I just sell some SGOV the next day.

No_Drop_1507

Noob here. How does this affect SGOV and HYSAs?

Heyhayheigh

Anything that helps you spend less and invest more on auto basis = your friend Anything that provides friction or obstacle = your enemy Overthinking, tweaking, analyzing, indecision, are all frictions. Would have been better working out what you can afford on auto weekly basis of VOO, then just work to increase whatever amount that is. This is the power of VOO and chill. Buy on an auto weekly basis. Sell only when you have an urgent expense to pay for. Keep emergency cash in SGOV, and move on with your day. The problem is I’ve never seen someone not panic sell if they are just VOO and the money is big… Then someone will cry “not diversified enough”, “international exposure”, “bogleheads said bonds!!” All just complicate the soup.

PashasMom

\--First, don't tell anyone about it. Your friends, family, co-workers will be coming out of the woodwork with requests for money and idiotic investment ideas. At the very least, they can grow resentful and it can interfere with your relationships. \--Get the money into a brokerage: Schwab, Fidelity, or Vanguard. Open an account with only your name on it. \--Make sure the cash is invested in safe funds that pay a decent return -- a money market fund, or a treasury bill fund such as SGOV or VBIL \--Do not commingle this money by putting it into an account with anyone else on it. \--Pay off any high interest debt (probably your solar loan and car loan) \--If you haven't maxed out your Roth IRA for 2025 and 2026 for you and your wife, go ahead and do that \--For the rest, wait a year before changing or spending. Take some time to plan and learn. Don't YOLO into expensive new cars, home remodels, round the world trips, etc. I think you should seriously consider just investing most of it in passively managed, low cost ETFs and considering it part of your retirement savings. Looking at the financials you posted, you are a bit behind on retirement. Once you get any high interest debt paid down, you might find a way to increase 401k contributions. And make sure that whatever else you do with this money, you keep 6 months of expenses in an emergency fund. OP, I'm sorry for the loss of your family member.

womble619

For a 3‑year, liquidity‑first plan, 67% in SGOV/VGSH fits the brief, but your equity sleeve is both tech‑heavy and overlapping with VTI (MSFT/GOOG/AVGO/AMD already dominate), so you could simplify to one broad fund or tilt a bit more defensive/dividend. Also sanity‑check duration and after‑tax yield against a simple Treasury ladder and set a rebalance rule; VGSH carries a little more rate risk than SGOV. I like to double‑check sector concentration and trend strength with a signals dashboard like Prospero AI, then make the call myself, no magic bullets, just a quick second opinion.

Dry_Ganache7488

I should not be on it after being for 7 years? Besides, I don't have access to SGOV in the local stock market or any bonds (just traditional savings at 0,6% monthly interest rate). I've been investing in stocks this whole time because it was pretty much the only way I wouldn't see my money rust in inflation.

CornerOne238

If your horizon is 2 years you should not be in stocks. Just buy some 2 year bonds and get principal plus interest back. Or use 2 year CD. Or just use SGOV.

CornerOne238

The bonds are there not for safety though. They're there because they are weakly correlated with stocks. You can replace them with SGOV if that helps.

vijay_the_messanger

52 here... I just asked in the dividend sub for better balancing ideas with focus in income - specifically, i wanted to reduce my super safe SGOV position and start a SPYI position for decent dividends (of course, in exchange for risk). I executed the plan and in the coming months, i plan to use the SPYI income for monthly bills and increase my Roth 401k contribution (catch up). Just my silly plan :-)

ieatballoonknot

SGOV not subject to local/state income tax

Fhyzikz

Why? SGOV is literally 3.7% risk-free

HornsUp115

Put your cash into SGOV, enable margin and then sell your SGOV as needed.

WingWorried6176

I love keeping my cash is BOXX. SGOV overrated

UndercoverOptions

I will have enough cash to maybe cover 80% of the positions getting assigned at any moment in time. The other 20 percent are naked. I keep all of the cash in SGOV in the same account. If something gets assigned Schwab gives me a day or so to sell what I want to raise the cash (from SGOV). Hope that explains it better.

UndercoverOptions

I do roughly the same thing. 1.5-2% per month. I don’t have any one position greater than 5% and I am way more diversified than you are showing. In the entire account I don’t usually go more than 10-20% naked and everything else is CSP but I keep all the money in SGOV. You need to pick strikes on support and resistance primarily - not delta. Just my opinion. I have been doing this for a long time and it is one of the most dependable and conservative trading strategies I have. Good luck.

Heyhayheigh

An emergency fund is generally 3-6 months of fixed expenses plus any large known expenses that will be incurred in the following year or two. Have that in SGOV in taxable. A taxable account should have “something” set to auto weekly in VOO. Don’t care what it is. Start comfortable, then work to increase until it is uncomfortable. Then work to increase even further. If you have a large urgent expense that is in excess of your emergency funds, then you will no doubt have to sell assets (VOO), where else would it come from? Do that forever. If you have income, if you have expenses, have auto investment. Only sell when you have an urgent expense to pay for that is beyond your emergency funds. Do it for a while and it will make sense. I keep almost no emergency funds. But that is not recommended.

YouAreSalty

Because it's risk. SGOV is pretty much as secure as it gets. As a rule, I don't "invest" on marging (or debt) for a volatile asset.

Heyhayheigh

So money is about when you will spend. 30 days or less = checking account (monthly bills) Emergency funds or large known expenses = SGOV in a taxable. Money that is meant to grow 5+ years = VOO or QQQM (if you want a bit more risk and growth). The risk you take when you invest is that you have an urgent event, have to sell, and it might be a bad time in the market. Once you get used to auto weekly investment in a taxable, over years, you stop worrying. You see it is just an accumulation game. If you have an urgent expense, sell to pay it and keep the auto going. It removes the emotions. When you pick stocks, now your character is tied to that choice. If I chose the wrong company, I’m a failure, or I’m sentimental, etc. hard to be so attached to a VOO for example.

Junior-Appointment93

I was in the same boat. Starting to turn it around. Depending on how much you have left. Start with weekly CSP’s or put credit spreads on quality companies. I have a credit spread going this week on Google. 225/222.5 is my spread. Once the week is done I will have received. $84 in premium. The deposit was $250 for the credit spread. Out of pocket I only had to put up $166. Last week did the same play made $71. In 2 weeks that’s $155 in premiums. I stopped 0DTE trading. That was my biggest issue. Just about 90% of my losses from last year was due to 0DTE/1DTE trading. If you plan on doing options 7DTE minimum. Max 30DTE. Take your premiums and put them in a good quality ETF that pays monthly like QQQI,IDVO,SPYI. Or SGOV. That way you are always making a little bit of cash each month

theoctagonguy

SGOV was only launched around 5 years ago and as far as I know is not FDIC insured but backed by the us government (bonds) so is almost just as safe but not 100% safe. More like 99.9% 😬

theoctagonguy

Whoops, thanks for the correction! Moreso was just pointing out SGOV returns are considered as dividends instead of interest for 1099 forms, or at least that’s how I understood it

theoctagonguy

Exactly, so you’d fill out a 1099-DIV for earnings from SGOV instead of a 1099-INT

theoctagonguy

I still have a checking account, I just use SGOV in place of a savings

MenuHungry3451

Ok so you basically just park all of your “liquid” money into SGOV?

MenuHungry3451

I can’t believe this is the first time in heading about SGOV.. wahhh ok I guess I have research to do lol

SirGlass

As long as they are FDIC insured and to be a bank in the USA you have to be, there really isn't a risk of losing money. Just make sure it's a bank and not a fin tech middle man. However hysa follow short term rates when rates drop hysa interest drops. Sometimes you can get some into rate that will be higher for 3-6 months but it may be limited to like 20k or something. Personally I don't use a hysa , just open a brokerage and use a money market funds or something like VBIL or SGOV. You will always get the short term rate.

BarefootMarauder

SGOV is an ETF and can be purchased at pretty much any brokerage.

BarefootMarauder

I agree, and use SGOV for most of my short-term "savings". The earnings from SGOV are exempt from state & local tax because they are derived from U.S. Treasury securities. Dividends from other sources are subject to state & local income taxes, as is interest from all HYSA's.

theoctagonguy

Just put your savings in SGOV. Short term t bond ETF paying out dividends monthly, also don’t think you pay state tax since it’s taxed as dividends and not interest if I remember correctly.

Easik

SGOV is short term bonds and should be relatively safe. The auction failure would cause rates to spike, so it would be a better yield, but a little bit of a price dip. You would recover all of the dip and then some with the dividend payout (ie. 6th of the month).

Pastrami

> You'll see failed treasury bond auctions if the fed floods the market with QE What does that mean, and does it affect my money in SGOV?

Easik

I sold VGLT last week for similar reasons, but I don't feel any better about SGOV now.

MLB-LeakyLeak

$SGOV

moiax

I have a CMA. I set my default core position to Fidelity's SPAXX, which is a money market fund. Treated like cash. Every Thursday, I buy a set amount of FDLXX, a treasury only Money Market. It is 97% treasuries and thus mostly state tax free. It will automatically liquidate when I pay bills or transfer. Interest is a smidge lower than something like VBIL or SGOV, but the function is better. I do keep a portion of my savings in SGOV, which I can liquidate in a day or two if needed. I can buy it right in my CMA account.

Elegant-Magician7322

The HYSA at my brokerage yield 3.5%. That’s where my 3-6 months savings for expenses go. I only park money at my regular bank account to pay monthly bills and expenses. Money I don’t invest, because I’m waiting for buying opportunities, go into SGOV.

Far_Lifeguard_5027

I have my semi-emergency fund in SGOV. It's a treasury ETF that is yielding about 4%. Treasury funds are the safest place to put your money, and the interest rate should beat inflation. Also treasuries are mostly exempt form state taxes. If you're worrying about your savings account loosing money to inflation, you basically have two options: a money market fund at a brokerage (like the SPAXX/FDLXX money market fund offered through Fidelity), or an online high yield savings account, which will not be tax exempt. I think the money market fund is a safer choice than a HYSA. A bank can lower their interest rates at any time, but treasuries are tied to the federal interest rate.

Rez_X_RS

Open a brokerage and deposit your money in SGOV or a high yield money market like SPAXX for Fidelity. A savings account is meant to house your money so it's 100% there when you need it, its low yield because it's baducally zero risk. If you want yield then you have to take on some risk.

Heyhayheigh

You’re not being robbed, you have a secure place to keep your cash and pay your bills. They used to incentivize you with savings yield, the market is such that it isn’t necessary. No savings keeps pace with inflation. Investments are needed for that. SGOV in a brokerage. A pretty small amount of it. The rest is truly invested.

rithsleeper

I just transfer any idle cash into brokerage. I have credit cards for “emergencies” and can always transfer cash back out of the brokerage to pay the credit card debt before it incurs any interest. It seems cumbersome for most people to do all this transferring but end of the year it looks like about $300-400 extra minimum in interest as opposed to keeping my bank account at say $10,000. Now in the actual brokerage I’m either holding in BIL or SGOV. It also allows me flexibility with margin. I sell a ton of premium so we have a Vix spike I sometimes need to sell a few “shares” of BIL or SGOV to make sure I’m not being charge an overnight rate on futures. I’m managing my money very actively, but it’s fun for me to see those totals end of the year and paying taxes is fun because I get to see I’m making essentially my salary off my investments each year. Just kind of wish we had another 2022 so I could see if I still make another salary of investments and test the non directional strategies I use. This rocket ship of gains has made all my work look like “just voo and chill man” is the right call. But all it takes is one year of even -10% and I’ll be way ahead of the game. Most people say that voo and chill makes them sleep at night, I’m the opposite. Betting on one direction in the market and that we could potentially have another 2008 or something where investments lose 30% in a year?! My diversification in not just companies, but strategic plays through selling premium, nondirectional bias, futures, commodities like oil, bonds, precious metals, corn, nat gas, even the occasional lean hogs future haha. Uncorrelated assets and strategies are what let me sleep at night.

VegasBjorne1

Open a brokerage account and buy the ETF SGOV which invest in ultra-short term T-Bills. SGOV can be sold at anytime, available in brokerage account next business day. Interest paid on the 6th of the month, and virtually impossible to lose money with current APR about 4%.

butlerdm

Aren’t people just using HYSAs, SGOV, or similar for yield on cash? You don’t beat inflation with cash savings, at least not for long

CHL9

Your uninvested cash should be parked in SGOV (ETF) or your bank's MMF (money market fund) for example at schwab its SWVXX, and you'll get about the current fed rate, about 4%, which is called the "risk free rate", ie the rate at which you can get interest without a serious risk of losing your investment. Banks #1 source of income is interest on their lending out or investing uninvested cash, it's what allows the US to have mostly solvent banks and for you to have no-fee banking, instead of how it is in many other countries where you must pay a monthly fee to hold your money at the bank and fees every time you do something . But yes in short that's what you will get on uninvested cash unless you use Fidelity where they keep your uninvested cash in a money market fund which yields a few points under the risk free rate, and they do the "automatic sweep" which means your money will accrue that interest and be bought and sold automatically. Most other banks you have to manually buy SGOV (or another very short term bond ETF) or the money market fund and sell it a day befor eyou need it

6JDanish

>*Where are you guys actually putting your cash to beat inflation right now?* In a brokerage account. I park cash in SGOV (an ETF), then use it as collateral to back various stock and option positions. For large cash amounts, brokers offer a decent rate. Interactive Brokers, for example, has a calculator here: [https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php](https://www.interactivebrokers.com/en/accounts/fees/pricing-interest-rates.php)