SGOV

Educational-Play-465

5-15% is more than I usually keep, but that's probably why you can wait on a setup instead of chasing one. If you're in SGOV or something, is the tax drag part of the math, or is it mostly about not feeling forced?

kawhiskers

You need to risk manage proper. So don’t put all your eggs in the AI basket and control your greed. Keep cash reserves in SGOV & CBIL to deploy on pullbacks. There will **definitely** be drawdowns on the march towards AGI.

kktvMIN

SGOV usually gives you a bit more.

Illustrious_Emu_9085

It does but it’s a relatively small impact depending on the amount you hold in SGOV and the % rate hike

us1549

Stupid question, if the Fed hikes rates, will that impact SGOV?

Yottahz

Make sure to sweep your money into SGOV at end of market today if you trade at lame E-Trade which doesn't do it automatically. $1,000,000 left uninvested over the three day weekend misses out on $300 over the holiday weekend if not in SGOV. That is like real money.

hansololz

Bought some Google and put the rest in SGOV

EmbarrassedPart1256

Welp, caught a nice dip on $GPRO, shoulda coulda woulda held a second longer (as per usual), but averaging in 50K shares to mitigate the loss shook me a bit 🤣 I had to do something to bolster the portfolio a bit; it's trailing the indices this morning... I'm still happy as can be with what I've created & am creating (RIP my individual stock picks that're all popping off nonstop; I'll revisit them when I have some "fuck you" money, when $CAPS pops off): * IWMI 27.64% * SGOV 26.15% * MLPI 25.01% * IDVO 7.85% * VXUS 5% * VTV 2.49% * DGS 2.46% * IAUM 2.26% * Cash 1.14%

Me-Regarded

Damn, my SGOV is up today!!! Boom 🚀🚀🦅🤟

hotforlowe

SGOV for ongoing short term migration and USFR for roll over exposure, yeah.

Charming_Raccoon4361

SGOV better

HelloTheirCruleWorld

**27M Investment Portfolio** **Roth IRA:** 100% VTI **403(b):** 100% VIIIX **457(b):** 100% VIIIX **Brokerage:** 46% VOO / 54% SGOV

kmouratidis

Sorry, mixed the tickers like the degen that I am. I meant SGOV, not TLT.

SnS2500

Your taxable income from SGOV and BOXX should be dwarfed by the capital gains, short and longterm, from selling VTI in the brokerage account. Keep all your cash in the brokerage and use the tax advantaged accounts to take advantage of not having to pay taxes, at least now, on the gains.

Fiveby21

Hmmm... you might be right. I had thought the potential capital gains tax would be dwarfed by the amount of taxes I'd be paying on the SGOV interest, but maybe I'm wrong.

Cool-Bath874

Frankly I can understand your frustration 😅 I think we all feel it, with inflation fears constantly rising, geopolitical tensions constantly on and off, US10Y at a literal 19 month high, oil futures soaring, and DXY also rising rapidly after just having dropped so much like one week ago? But NVDA’s recent reported earnings is more than enough confirmation that the AI wave thesis is completely intact. It’s not actually a bad idea to sell your positions and rotate into oil stocks or SGOV or something, but for me personally I’m just holding. We don’t know how long this correction will last, or how long before NDX starts climbing back up again. But for me personally, the fact we’re constantly seeing massive red days despite incredible reported earnings on so many tech stocks doesn’t make me want to sell it, im just holding enough dry powder for if I get the best opportunities to buy

EmbarrassedPart1256

Futures are mixed today so it may be a good day to do nothing, regroup, & think about your goals/allocations. I'm taking the morning off from trading penny stocks, chatting with ChatGPT & thinking about my allocations. I'm a bit overweight gold (**$IAUM**, cheapest expense ratio) but I wanted to buy the dips as they come & have some time to let this one play out. I deployed a chunk of cash yesterday & am still holding \~25% cash after all of that. I'm hoping to make a major purchase going into 2027 so the cash position has value far beyond its yield; I've really started to like the stabilizing aspect of cash recently as well... Although not penny stocks, you all are my friends & I figure we can have conversations outside of penny stocks. Here are my holdings as of yesterday/early this morning: **IWMI** (Russell 2000 futures showing strength, CC premiums are likely juicy during dips) 27.51% **MLPI** 25.41% **SGOV** 25.39% **IDVO** 7.78% **VXUS** 4.95% **IAUM** 3.28% **DGS** 2.45% **VTV** 2.4% Cash .88% As far as penny stocks go, be sure to wait for a solid entry on something that's running, take your profits, park them in something safer, & scale down if you re-enter to not wipe away the day's gains, among many other things! And of course, **$CAPS** 🤙

spilledonwhite

Check out JAAA and PAAA those are dope. Volatility is only a hair more than SGOV and been paying 5%.

NinjaTrader007

Thanks, I like this suggestion to have a rolling 2-3 year liquid fund that’s insulated from crashes and started integrating this into my plans by keeping a portion in bond ETFs like SGOV, VUSB and USFR while also keeping a 3, 5 and 7yr CD ladder. Most of the remaining stays invested long term in VT.

Technical-Rope6421

SGOV

AhsokaFan0

Depending on how much you’re talking about this might be a good reason to figure out TIPS. Otherwise, sell and shovel into SGOV or something like that.

BarefootMarauder

Nobody can predict what might happen in the next 1-2 years. Your losers could become winners, and winners could become losers. If you will absolutely need the money, it should already be out of the market, or you should at least be actively working to get the amount you need out of the markets now. Put it in a safe cash-equivalent like a good MMF or ETF such as SGOV.

rumblepony247

I'm almost to the point where I can put all my Vanguard and Fidelity assets in their money market funds (or SGOV), and generate enough income to cover my expenses. I know the 7-day SEC rates aren't going to be 3.6% forever, but there's an appeal to covering one's expenses without risking NAV.

InvestingNerd2020

In your 401k with pre-taxed money, one Target date fund with an expense ratio of 0.30% or lower. Hopefully, a 2065 fund. After employee benefits and taxes, try to put some money away into a high yield savings account (HYSA) for emergency savings. Make sure it has 3% or higher interest rate. Try to shoot for 3 months of your routine monthly expenses. This will keep you from touching your investments during hard times. Examples: Marcus, Amex, Ally, or Capital One to name a few. An Alternative emergency savings option is a Treasury bond fund that protects you from State and city taxes on interest earned. The only downside is the money isn't available on weekends. Popular options are SGOV and VBIL. After building up emergency savings, start investing into your Roth IRA. Assuming it is with Fidelity, invest into two index mutual funds. - FZROX with 80% allocation. - FZILX with 20% allocation. These two funds offer zero expense ratio and a good track record since inception.

YTLupo

Put 400K into SGOV at close lmao. SPY behaving like Robert Down-syndrome Jr.

spilledonwhite

I think I'm up on my SGOV position right now

austinvvs

So now you’re saying the average person should gamble their retirement on far dated put options? I highly doubt most FA’s even utilize options as it’s incredibly risky. Everyone was screaming doom and gloom last year when SPY and QQQ both dropped over 10% in a short period, and if an advisor would have bought puts for “downside protection” those positions would have went to zero or would be significantly down right now. The funds you are talking about are often holding consumer defensive companies and it’s not exactly a hidden strategy to buy into those during times of market instability. Everyone knows about WMT and COST. This is not some sort of super secret hidden strategy. And buying ETFs/mutual funds every month is not stock picking. Trying to completely time the market with all of your money and buying single stocks would be a hell of a lot riskier. Never said to hold SGOV for a long time either. I use the fund to sideline money when the market is struggling and then rotate the money back in when the market turns. This is how I got all the funds I’m invested in on discount last year when people were panicking. Right now I just use SGOV as an emergency fund and otherwise I’m fully invested.

terrybmw335

Glad I rolled out of TLT last week over to SGOV.

BarefootMarauder

Using the 4% rule as a general guideline (NOT a hard & fast rule), you could safely pull around $11,200/year from a portfolio of $280K without fear of running out over a ~30 year period. If you need to spend $1500/month, and you get $410/month from SSDI, you're still pulling more than that (~$13,080/yr). The 4% was recently updated to something like 4.6% now, which definitely gets you a little closer. The 4% rule is also based on the assumption that your portfolio is invested in the market at roughly a 60/40 split stocks to bonds. There are a lot of other variables and nuances to it, so I'm speaking generally. Putting all the money in CD's, HYSA's, or other cash-equivalent investments isn't going to cut it because you'd essentially just be keeping up with inflation. Growth comes with a certain amount of risk. If I was in your situation, I'd probably keep ~3 years worth of living expenses in cash-equivalents (a good MMF or a decent ETF like SGOV), and invest the rest in low-cost total market index funds such as VTI/VXUS or similar. Something like an 80/20 or 70/30 split -- that part is up to your comfort level with international investments. If the markets continue to do well, you can pull profits off the top for living expenses. If we go into a bear market, you can live off your cash bucket until things start to recover. But it gets a little dicey if we would go into an extended bear market that takes longer than 3 years to recover.

Superunknown999

Sector rotation isn’t downside protection. Using option strategies or specific funds designed to limit loss offer true protection. During the Great Recession, the top performing sector fell 15%. And now you’re talking about being an active stock picker as well. SGOV is better than cash, but that’s not a long term investment strategy. Not all people are active investors either, nor should they be. I’m not an electrician and I don’t pretend I can wire my house.

austinvvs

Downside protection can be learned from studying sector rotation but I grant you most probably wont care or want to do that. SGOV is a thing as well I understand most people are going to eat my alive for this but I just have a hard time understanding the role of an advisor beyond peace of mind

smexypelican

1) Put 100% into SGOV 2) Burn half of of the dividends. Congratulations you have achieved 2% gain over one year.

SuperBrazilNuts

I had 3 call options fired up in tos to buy the nov 26 350 strike at like 14.10. Rejected because my dumbass parked my money in SGOV to make like $5. By the time I sold SGOV, Goog started to print and the options are now 19.50-20.40. I never filled.

ElectTrump2028

A safer bet is SGOV. Will pretty much cover just the cost of Gold. Yea, you can do CHPY, but look at other Yieldmax funds, they can tank HARD. MSTY was a golden goose for awhile but then went straight to trash.

Creative_Youth_4982

do you have $999,000, then I can suggest BIL or SGOV

YTLupo

USFR and SGOV over the weekend is the best play

Sure-Caterpillar-263

If you expect the market to crash why not hold hold in a high yields saving account or buy something like $SGOV? Because won’t Berkshire crash too along with rest of the market?

Affectionate_Run3921

I keep a sizable position in BRK because (a) it diversifies and anchors my other concentrated positions and (b) I’m actually buying their cash pile. SGOV is fine for some, but I believe that when large, fear driven buying opportunities present themselves, BRK is going to be a better capital allocator than I am. I don’t buy and hold it for growth on the short term, I buy it for those two reasons.

_galaga_

I held BRK but got impatient after a year or more with it falling behind SGOV. There’s defensive and then there’s “worse than a money market fund” defensive which seems kinda pointless. I still watch BRK and I’m not dismissing it entirely but in this phase when it’s losing to a money market I don’t see it as a good play. Of course this now means it’ll shoot to the moon Monday.

Ok-Yam-6616

SGOV or similar. 3% of $10M is $300K. More than enough to live on happily ever after. 

SuperBrazilNuts

i put in a limit order for the nov 26 350 strike for 14.30 but didnt have the money because i parked it in SGOV. By the time I sold SGOV I missed the tape. Making $3 cost me like $750

Equivalent-Snow3651

I'm day trading SGOV these swings are absolutely wild bro

West_Lavishness6689

my company doesnt offer a 401k, they are an ESOP. so i invest on the side. 2020 -> 2026 = 44k -> 2 million and i cashed out. right now re-evaluating my position from gambling to long term investments. currently sitting on 1.4m cash (SGOV), no mortgage, no debt of any kind. from where im standing i know how to invest and when. right now im taking a pause. mid terms coming up mean chaos continues.

Competitive-Kick-436

At least park it in SGOV while you figure it out.

__redruM

Ok, so do $10k a month? Or $5k a month, but at the very least get started. Is the money market account giving you over 3%? If not then there are HYSA that can or even SGOV that does over 3% with some tax advantage, depending on state. I’d move it all to fidelity, stick the bulk into SGOV, with $10k in VTI, then slowly migrate from SGOV to VTI until you’re happy with the allocation.

Equivalent-Snow3651

I am swing trading on SGOV

MiniTab

Guys, this has happened multiple times in my life and I’m under 50. Late ‘90s, 2007-08, etc. Lots of signs, yet the pump continues. The FOMO is real, and honestly what the hell are we supposed to do? I’m fully invested in index funds too. At some point the music will stop, calamity will ensue, and lots of individuals and organizations will yammer on about how they knew. A lucky few will get rich from great timing. I’m fortunate enough to have no debt (except for a very low interest mortgage), so I’m saving cash (in SGOV), continuing my biweekly 401k contributions, and at least this time will have cash on hand when shit hits the fan (whenever that is, could be years from now).

No_Kiwi9654

I keep my cash reserve in my brokerage account invested in SGOV and earn about 3.8% on it. I also have a small position in PFFA in my Roth account that is very stable and earning about 10% on dividends.

OrdinaryLatter

No because you own shares in that fund (SGOV), which is not owned by RH, they’re just the brokerage. That being said, I think RH has designed themselves as a gambling platform and it’s offerings reflect that. Stick with Fidelity or get a Vanguard account. Schwab is good too, I have all 3.

wessandifer98

Interesting. Crazy world we live in. So basically by buying something like a bond through robinhood, maybe something like SGOV, that should mitigate that risk of losing all the money? Because you own an asset with that money instead of it being pooled with other people’s money? Wouldn’t you still lose it though if RH or its partner companies went under similar to the video linked, and you had no way to sell the stock to transfer it into cash and withdraw it? Sorry this is not my area of expertise.

Snoo23533

VT-all world for diversification & sleep sound. Or lose money in different ways BUT be divorsed from the overall market with minor positions in things like SGOV cash for di-worsification (defaulting isnt the risk on this one, its underreported inflation). VGPMX precious metals FBTC for non-fiat (I hate it too but it refuses to die.)

krantmin

SGOV

Cav829

I kind of have to move things around between accounts based on plan restrictions and shit. So like in my 401 which wants me to pick between different intermediate/long/mixed bond funds, I'm dumping those and then putting a similar amount in my Roth or my personal account into short-term bonds or gold. USFR/SGOV are fine. Buying shorter duration T-Bills yourself is fine. I just want nothing to do with any of these TLT/BND type funds.

dope-a-meanie

You mean, State income tax? SGOV is subject to federal tax but not State tax (if your State has that)

dope-a-meanie

SGOV. A bit more friction as you’d have to move the money to your brokerage account and execute a BUY order. The interest paid is not subject to State Tax if your State has income tax. Or a High Yield Savings Account. That interest is subject to State income tax if you live in a state that has that.

daYnyXX

Wait til you learn about USFR and SGOV. You get even closer tracking to the current rate. Down side is you don't get the FDIC guarantee. 

outstanding_gent

So dump SGOV ? Take a loan and buy Lefts 5x short ?

Sneaky_Croissant

SGOV september

greytoc

Is the reason for the savings in SGOV because you are saving for a house? And if so - what is the timeframe you believe you need that cash? If it's more than 1 - 2 year - you may want to consider a longer duration product than SGOV unless you think that the yield curve is going to change in your favor.

sanderjl

Hello, My wife (27) and I (31) are reaching some good financial milestones this year and I would appreciate any tips, tricks, and advice on some of our next steps to start saving for the big stuff in the future (house, car, etc.) Right now we are each fully funding our Roth IRA's to hit the limit by the tax deadline, are hitting the match on my employer's 401k plan, she pays into a pension, and this month we just hit $10k in an emergency fund in a Marcus HYSA. Immediate next steps are to pause saving and aggressively pay off her car by December. After that my tentative plan is to open a joint Fidelity JWROS account and start putting all of our savings into SGOV to hopefully maximize tax advantages and gains. With that are full financial picture in 2027 would consist of: \- Gross Household Income of \~$200,800 \- No credit card or student debt \- A $10k emergency fund HYSA in Marcus Account \- 2x fully funded Roth's IRA's (currently $26k and $74k invested in index funds, ETF's, and various stocks) \- My matched 401k (currently $11.6k) \- $114.8k total in rolled over IRA's from previous employer retirement accounts \- 2x paid off cars (one is over 200,000 miles and might need replacing in the next couple of years) \- A Joint Fidelity account invested in SGOV for all of our savings (treasury bill ETF that should be mostly exempt from local and state taxes). Planning to contribute $2400 monthly starting in 2027. \- I also have an individual brokerage with Robinhood (up 17.1% over the past year, up 10.44% YTD) and M1 finance (down 4.54% over the past year, up 0.34% YTD) that have about $12k sitting in various stocks that I have basically left sitting with no deposited contributions for the past couple of years since getting married. Any thoughts on consolidating, reinvesting, etc. are welcome. I'm a big cost cutter so I am pretty sure that our bills/subscriptions are as optimized as possible on things I can control ($25/month for streaming services, $40/month internet, $200/year for cell service, $150/month gym with a $250 annual rebate). Total Bills (rent, utilities, insurance) are about $3100/month. We have considered an HSA and 529, but have decided that these would not be the right fit for our needs as we are unsure if either of use would really like or need to go back to school, and I have chronic health issues so I feel that a lower deductible health plan with an FSA is more cost effective for us. Sorry about the length, would appreciate any advice or input, thank you!

Educational-Play-465

Makes sense on the MRK exit at $150+ — redeploying into higher yield when the multiple gets stretched is clean. Do you usually hold the cash in SGOV/money market while waiting for the next setup, or do you always have a bench of 2-3 target names ready before you trim?

Ok_Reaction_1549

Papa says go just buy VOO and SGOV. Is this good for long term capital appreciation 🤓

MarthaJulietta

Thank you for that but I am not worried about beating market returns. To explain clearly if I have 100k account value and the margin req is 30%, I am allowed to sell 70k notional value in puts (seems to be more in reality) without incurring any margin charge. That is what I am doing. I am taking the premium from those sales and putting it into SGOV to receive short term interest rate on that and using it for cash for when I inevitably get assigned on something. It’s not free money but if I can find 1.5% a month plus SGOV returns it could provide some serious extra juice to my account

MarthaJulietta

I’ve been on a bit of a heater of late and can’t wait for Monday every week. Monday deposit + DCA + Sell outs with spare space + put premium into SGOV seems too easy. I know I’m gonna get my butt but at some point selling all these puts but right now this train is rolling and with a bit of luck I can make it through the EOY pulling in 1-3% a month and get enoufh lead that the bite doesn’t hurt too much.

Eyoba_19

Glad you liked it, Not sure how you could use BOXX as a financing tool, but might be good to earn yields if they're better than BIL or SGOV on short term rates.

Investinurself

$300k in SGOV. It Will last a long time if everything crashes. It's less than 10% of my portfolio so I don't think that I'm constantly second guessing it's way too much. Helps me sleep at night.

SoundOff2222

Right. It could be making 3.8% or so if sitting in SGOV. There is an Old saying, Sell in May, go away, buy again after St Ledgers Day(Americanized to Labor Day) St Ledgers day has something to do with horse races or dog races, not sure - but its in the Fall.

nutsbonkers

It's all in SGOV, ready to liquidate in my brokerage account. I just hope I can notice when a decent time to buy is. I know ill never time it perfect but...idk i should stop worrying so much.

ecphiondre

I need just one Gamestop/Tesla moment in my life. Just one true moonshot where I am early. I will delete Reddit, put my money into VT + SGOV and never trade again.

Colonel_F0rbin

I personally hold almost no bonds in my portfolio except short duration treasuries through SGOV as part of my emergency fund. I'm not advocating for or against bonds. What I am saying is it you have absolutely no idea what bonds are and, and have grossly misunderstood the mechanics of price and yield in your posts

Fart-Fart-Fart-Fart

What can they do that you can’t? If you don’t think it’s a good time to invest in stocks, just buy SGOV and turn on drip.

MaddRamm

SGOV for HYSA rates with no risk of fluctuating principal.

Exquisite-Load8654

Micron, Microsoft, google, and VTI are my largest positions. SGOV and VTI are my only non-tech related investments.

hangster

This is exactly that. Been laid off numerous times, has always taken so long to find new work etc... I keep a good chunk, just incase. It doesn't take long for things to flip around. Is your healthcare, salary, life insurances etc... and even your partners/kids/etc also tied to your work? One board room decision changes all of this for you. Typically for me, I've seen this come during a market downturn... so I'd rather lock up my money in a HYSA or SGOV or something vs thinking I can just take it out of the market. Clearly - its a conservative view, but it lets me sleep better at night (which is worth a whole lot).

ArcDogRob

SGOV diamond hands is the way to be atm lol

animalinstinct10m

Buffer ETFs are a good supplement. A 100% buffer from Innovator gives you S&P upside (up to a cap) with 100% downside protection. That way, you earn more than SGOV or a MM mutual fund, have liquidity, and don't pay taxes on income (like you would with a HYSA, CD, MM mutual fund, or Treasury ETF). The tax impact is when you liquidate but it will be at the capital gains tax rate rather than the ordinary income tax rate. Didn't answer the question of amount as that depends on many of the risks that others have already addressed.

ItsJustAnOpinion_Man

6 months expenses for me. Only serious liability is mortgage.  I keep a lean checking account (terrible rate and limit exposure to theft/fraud). Basically 1 month of expenses in and out. Savings account for basically immediate access. Another 1 months worth.  Remaining is in investment account in SGOV. Access in 2-4 days depending on transfer timeline. Enough of a limit on credit card to cover me until I can access SGOV.

krantmin

Keeping 2 years worth in SGOV. I am in IT area. Jobs area flaky as of now because of AI, and the IT job market is pretty bad. New job may take anywhere between 1 month 2 years. :-)

MagisterVerde

And as someone below said, most isn’t literally in cash; my emergency fund was entirely in a HYSA, but I recently transferred most of it to a brokerage invested in SGOV. Why? HYSAs invest in short-term treasuries and take some basis points off the top as their fee, so why not skip the spread and invest directly in the same underlying risk profile. The tradeoff is T+1 rather than immediate liquidity, which is why I left 10K in the HYSA to cover me if I get laid off on Friday at 4:30pm of a long weekend 😂

overitallofittoo

In cash cash? One month. Put the rest in SGOV or something.

Me-Regarded

Is SGOV too risky right now?

Dilldo__Baggins

I currently have 168k (16k in checking and 152k in SGOV). It may seem like a lot but I have two little kids and own four properties with mortgages. I’m also a few years until I decided to FIRE, so having a larger cash cushion feels good.

RandyBoBandy636

$175k in SGOV and about $80k in cash. Value in SGOV is treated like 70% cash in brokerages as far as margin is concerned

dogs_gt_cats

HYSA is about $6k. I also keep cash accounts for things like vacation fund, IRA savings, etc that I can pull from in an emergency until SGOV settles and the ACH completes. To their credit, with Fidelity, I *have* had sales settle and ACH happen within less than 24h, but that's probably because of my account size and margin.

Ethanop1a

Where do you have your SGOV that you can access it same day?

dogs_gt_cats

>HVAC companies send you a bill HVAC companies do not always send you a bill, some want payment immediately, especially if they need to buy expensive parts to repair things. It depends entirely on the business. Many small hvac companies and handimen don't have back offices to handle invoicing. For example the only Trane repair guy in our area that answers his phone is a single person with no office or billing staff. He expects payment same day. > Even if they didn't, you can easily go to the local hardware store and buy either a window AC unit or a radiant space heater depending on why your HVAC breaking That covers two types of issue. That doesn't help you if your air handler springs a leak and does a ton of water damage that requires immediate intervention. Or your furnace dies, taking your hot water heater with it and your whole home has no hot water, and you're risking your pipes freezing. There are myriad ways for things to break. I've been a homeowner for close to 20 years now. Emergencies take many forms, and I've learned not to make assumptions about who will/won't be available to help, and how they will/won't accept payment. In the past 2 months I've had about 12k in emergencies (3 major vehicle repairs one after the other, medical issues with our kid, and an HVAC issue where a water sensor kept triggering and shorting our air handler due to a drain clog). About 1 month before that we had a similar issue to what I described above, where the burner on our furnace wouldn't work, leaving us with no hot water for close to 2 weeks. Generally when emergencies happen, they tend to cluster together for some reason. For both hvac issues, we had to pay cash for parts. Anyways, personally, I keep 1 month of spending in a liquid emergency fund in a HYSA, and then keep 6 months worth of "deep emergency fund" in a position in SGOV. If an immediate emergency requires a cash payment I can borrow from another budget for a few days until a sale from our deep emergency fund can replace it. HYSA yields 3%, SGOV is around 3.7%.

Vikkunen

1.5mo total spending in checking, 1.5mo total spending in traditional savings, 4mo essential bills (~2mo total spending) in SGOV allocation in brokerage acct. I'm the unlikely event of a double job loss (wife and I are both in stable, unrelated jobs for different state governments), we would be able to ighten our belt for 6mo or so without touching conventional investments.

dogs_gt_cats

1 month of bills/average spending in a HYSA. 6 months of bills/average spending in a SGOV position.

thorn960

You need to at least put most of that 40k in a high interest savings account or something like SGOV. I only keep a couple of thousand in my checking which earns very low interest.

gap1284

Ouch. Put it into SGOV or VUSB.

atheos42

Is the cash in a HYSA, money market fund, or SGOV? If so, your fine.

anywhoaroundhere

What are you buying in your brokerage? Could be sound plan if you’re buying something low risk like SGOV or an equivalent. All in on MSTR would be a less-than-sound plan.

dope-a-meanie

I’m over 50, single. I work in tech (at an investment bank) and if I lost my job today, I doubt I’ll get back into the workforce quickly, if at all. On top of that, normal medical issues as one ages. I have a years net salary in SGOV and another $15k in a HYSA. Since you mentioned investments, I have a bit over $1m in taxable investments (mostly ETF’s, SPYI produces an income to cover my housing in case anything happens). I should have done better at my age but it’s not the worst situation to be in.

Original-Poet1825

You buy more than just US stocks basically. I personally do 60% VOO 20% VXUS 20% SGOV/BND and forget about it. If there’s a big drop I don’t mind rebalancing

AnselmoHatesFascists

Why not put it in something like SGOV? It pays about 3.6%, and is extremely liquid. You could sell it and have the cash on hand within 2 days.

flyingtiger188

If 20k is all you have in the world I would dump most/all of it in HYSA/SGOV/money market funds or other safe investments. You need to maintain 3-12 months of emergency funds if something bad happens and you can't work or experience a significant unexpected cost.

citygeek

At some point you get enough assets in enough places that perhaps you don’t need to leave it that unproductive. If it were me….i might slowly DCA a portion of it into lower beta assets. Things that go up more than inflation, but are less volatile than the S&P 500. Things like: SCHD, DIVO, JEPI, JAAA, JBBB, CLOZ Note, these can still go down in value, albeit they are much less volatile than the general market and are otherwise “easy to hold.” I think it’s entirely reasonable to earn a blended return of 6-10% on this money without sweating too much. At some point the best defense is a good offense. I’d still always leave a small portion in something like SGOV

Dust-Sea

You could have just bought SGOV, same thing.

ra__account

1. Dividend focused stocks tend to underperform a little bit because they're more stable companies less likely to have a breakout hit again. Coke is going to make money but there's nothing likely that's going to revolutionize their market. 3. I almost exclusively use ETFs and index funds. 1. I'm deep in the tech world and apply what I know to the occasions I do buy individual stocks. 3. As I get closer to retirement, some of my growth funds will be reallocated to be less risky and I'll build a several year buffer of SGOV etc. to ride out crashes without being forced to liquidate. I have enough saved that even if I have to liquidate after burning through several years of stable funds it will be annoying but not horrible. And keep in mind a multi-year crash to that extent also means your dividends are going to be cut and/or suspended. For post-tax holdings, there's no different (*most* of the time) between qualified dividends and long term capital gains. But in-post tax holdings, dividends can force you to take a taxable event that you may not want or need whereas liquidating can be at the time of your choosing.

arBettor

Only if the Fed raises the Fed Funds Rate. But longer term, artificially suppressing long term rates will probably have an inflationary effect that would push the Fed to react with higher short term rates, so maybe eventually SGOV will yield more based on this change. But there should be no immediate impact to SGOV.