SGOV

bushed_

either go out on the risk spectrum (corporate) or roll t bills (SGOV, etc) you can’t just materialize a 5% return with no duration risk, which is what you’re complaining about. if you really need the bones in 6 months, forgoe 80bps and own nothing with duration.

drew_eckhardt2

If I had to pay state or local income tax I'd put it in short term treasuries purchased through my favorite online brokerage where they're easily sold before maturity if necessary, or SGOV which invests in 0-3 month treasuries. Here in California where middle class people pay at least 9.3%, 4.1% exempt from state tax is like a fully taxable 4.5% and $500/year on $100K.

pr0prfkt

There is no such thing as low risk. Everything has trade offs. The market doubles every 7-10 years. If that 100k is there for 7 years then it could have been double in simple VOO. That is the tradeoff. Let’s say hysa gives you 20k over those 7 years. You will have have 120k vs 200k. And then there is the effect of compounding. You don’t get to 21 years invested without getting through the first 7, etc. You’re a business owner. You’re likely too risk averse (ironic considering own business is riskier than VOO). Find a trustworthy pro to discuss these things with. But in general, auto invest part of your income and don’t panic sell is how it works. I personally don’t like hysa, much prefer SGOV in a Fidelity account. At least the brokerage will compare to benchmark and you can see what you have up compared to sp500 (VOO). Banks don’t give you that analysis, they just let you get eaten up to inflation (their business model). Best of luck!

Putrid_Pollution3455

Safe spendable you’re tied for hysa and SGOV or short term treasuries. You can get 5% on long term treasuries but those are more volatile than stocks 😂 example TLT has an average duration of 15 years so every 1% interest change will swing that bad boi about 15% EITHER DIRECTION.

tech01x

A lot of this depends on your tax situation. HYSA is obviously straight up income, taxed at ordinary income progressive rates. You might want to lower your taxes by seeking investments that have tax equivalent yield, but lower taxation. Stuff like SGOV. Or you might take a small portion of that and expose it to principal loss (even if it is temporary) like municipal bonds of your state (completely tax free) or TLT. Of course, HYSA interest rates adjust relatively quickly to changes in interest rates, so if you believe these interest rates won’t stay here, and will drop, then things like CD ladders and treasury/municipal bonds might make sense. Especially if you don’t expect to have to pull from all of this all at once.

Crazytreas

Majority of SGOV is state and local tax exempt while HYSA's would be entirely taxed by the state and localities. The higher your state taxes are, the better SGOV will be.

HammerDownl

SGOV

BullfrogBrewing

SGOV

drakilian

Or 0-3 month short term bond etfs paying put 3.75% riskless (i.e SGOV or BOXX) with similar liquidity as cash

dogefool88

This is what I do. I put 80% in SGOV with no margin enabled in the account. This way, you play with limited available cash

FistEnergy

SGOV

YTLupo

If my account ever touches $50M or more Its going into SGOV on margin lmao

Evening-Bee-7134

With $4 million you and your wife have essentially won the game already in your 40s. I could not blame you for taking chips off the table. You just have to worry about inflation. You may want to look into a deferred annuity product or MYGA for a small part of the $4m at some point. I am retiring in 2027 at age 58 and will be 38% Equities / 62% Guaranteed Income in my IRAs with 2 to 3 years of cash in SGOV in taxable account. My IRAs are 38% Roth / 62% pretax. I have less than 1/2 of what you have saved.

sunwarrior0978

Sooo SGOV?

082426grateful

Mines sitting in SGOV, forever.

masaischool_in

Your logic is right for an individual T-bill held to maturity: you get face value back whatever rates did in between. SGOV (iShares 0-3 Month Treasury Bond ETF) differs in one way. It has no maturity date. It keeps rolling into new bills that mature within about 3 months, and its share price moves a little when rates change. Because the holdings are so short-dated, that movement is small, which is why people use it as a cash substitute. But "zero risk" is a little strong: the price isn't fixed, and the fund isn't itself a government guarantee, it holds Treasuries. Two details: it pays monthly distributions, and the income is federally taxable but exempt from state and local tax. General information, not advice.

Fhyzikz

I should've done this SGOV and chill when acct was at ath instead of losing 3% trying to short the criminal prop job. Much less stressful and the line only goes up

Fhyzikz

Yep now that I sold my QQQ puts for a loss and went 100% in SGOV to wait patiently for the crash, it finally wants to pull back a bit. Unreal

Janubeary

At what SGOV yield will people start taking profits and parking cash I wonder

sfv818

Banks have to make money somehow, if it’s so important to you, just buy SGOV. Or bank with a bank that increases fast.

shanked5iron

sell puts with it or put it in something like WEEK, CSHI, or SGOV

SomePolack

SGOV

SnS2500

She could just put $6000 more in the Roth in SGOV, and then not pay taxes on the interest she would in the HYSA. No need to invest it now... small benefit of interest income in the Roth instead of the HYSA... she can take it out if she needs it... but in future years she may want to invest more in the Roth, so it would make sense to max it each yearly contribution now when you can, even if for time being you just have it in zero risk SGOV or something similar.

CurrentAirline9065

As a bear please stop buying puts you idiots, just sit in SGOV till the crash

TheirSam

SGOV and TTTXX currently have the exact same yield.

DoinIt4DaShorteez

3.22 in a sweep account isn't bad. in that case getting another 0.3% or 0.4% per year on $1,150 in SGOV isn't worth lifting a finger for. it's like $3 - $4/yr. in the sweep account, you don't have to sell shares and wait a day to access the cash.

mspe1960

You have never needed to send money via an EFT? How about you want some cash from an ATM*?* I am retired and the way I fund my entire life is by automatic monthly transfers from my HYSA to my checking account. As needed, a few times a year, I transfer accumulated dividends and/or capital gains to the HYSA to keep it funded for that purpose. And yes, some of those are SGOV. But I cannot use SGOV for cash flow. It does generate cashflow but I have to sell it and wait for funds to clear before I can use it,.

Severe-Weekend-6664

Swapping $500 of QQQ into SGOV for dry powder makes sense if you want the liquidity for a property purchase, but $500 is a rounding error against your $130k IRA and $550k home equity, so it won't meaningfully change your positioning. The bigger lever is how you plan to fund the second home, since a $500k hills property on a $6k/month income needs a clear financing path before you worry about a $500 ETF swap.

TootCannon

Yeah this seems like a no-brainer. Keep a few thousand in checking with Chase, get all the convenience of the biggest bank in the U.S., keep all investments in fidelity/vanguard and all savings in MM, SGOV, or another bank with the highest interest rate.

TJMBeav

I still contend that it cannot be. But when no one is afraid of losing their money on almost any investment, which is where we are right now IMO, then it appears to be disconnected. What will happen eventually is all of the current risks being taken, specifically capital projects/investments, start to fail in the real economy then real fear will enter ALL of the markets. I am 65 and have seen quite a lot in my lifetime and it has been years since real fear has been evident. Probably the closest thing that has happened in your lifetime was Covid, and that fear was very short lived because of all the dramatic measures taken by both the Trump and the Biden administration. I don't think that kind of intervention is possible again. I think you are being wise, and believe it or not, putting your money into something as safe as SGOV is a really good idea and is currently yielding enough to offset inflation. I wouldn't suggest that you avoid the stock market forever, but avoiding it right now is very smart. The worst thing that could happen is you lose a years worth of market returns, the best thing that could happen is you have capital (cash) to buy good companies for far cheaper. Good luck to you and I know you will do just fine in the future, as long as you aren't expecting armageddon or the end of the world. Waiting for that is a fools errand that far to many fall into.

helpwithsong2024

VMFXX: 3.79% SGOV: 3.70% Vanguard's MM has definitely kept pace...?

BigBossShadow

just stop bro, what are you 17? that is not what liquidity means, SGOV is not liquid enough to buy a car or go on a vacation? lol.

AlternativeKick5225

I totally hear your point about the short horizon – the extra few basis points from a 3‑6‑9 month T‑bill ladder are usually dwarfed by the hassle of setting it up and the risk of the office shutting down. For a 9‑12 month purchase I’d keep most of the $75k in a 4.5% HYSA and maybe keep the $15k SGOV as a quick‑access safety net, but otherwise skip the ladder.

BigBossShadow

You're talking about liquidity like youre parking millions in SGOV and need it for day trading. SGOV is literally cash. Yes its 1% less liquid than those. Doesnt make it any less of a stupid comparison. You're just talking nonsense that doesnt mean anything

mspe1960

They are saying they use SGOV as a replacement for a HYSA. I am saying, correctly so, that it is not a one for one replacement.

NobodyOk1556

yeah, banks aren’t required to pass fed hikes straight through; they weigh depositor inflow against loan demand, funding costs and competition. feds bump the base rate, but your bank’s 3.4% is still around the market average for a while. i see most big online banks (Marcus, E\*Trade, SoFi, Capital One) raise their HYSA to 3.5‑3.75 around a week or two after a fed move. if you’re comfortable switching, moving a chunk to one of them will give you a few extra bps. or keep whatever you need in a brokerage money‑market or Treasury‑bill fund (SGOV, IIQA) if you don’t need instant ATM access. in short, the fed sets the tone, but each bank decides how fast to echo it.

dankappledrank

Call me crazy but what are the number of situations that require same day liquidity that you couldn’t just put on a credit card? I have 100% of my leftover cash going straight into SGOV after cash required bills are paid (rent, my car payment) because I’ve yet to encounter a situation that demanded immediate liquidity

mspe1960

SGOV is a good place to park cash, but it is not equivalent to a HYSA or MM fund. It is not as liquid. You cannot do an EFT from it, and you cannot write a check. If you don't need same day liquidity, it will not be an issue. But many people do.

__redruM

Index funds give next day liquidity, including SGOV which returns as much as a HYSA and lets you skip state taxes. But imagine you had your emergency fund in VOO for the last year. It’d be up 15% and could handle most normal dips without losing money, and after 5 you’d be approaching almost double your principal. This is a real risk, but would accelerate someone who started retirement savings late, and once you’re well into 6 figures, the market would have to really dip for you to sell at a loss. I still keep $20k on hand, but can’t leave much more out of the market.

SirGlass

As others said, use something like vbil or SGOV. Banks can play games if they need deposits they will be aggressive and match the fed funds rate. If they don't, they won't.

Hoosier2016

Marcus raised their rates from 3.4 to 3.5… …and I closed the account and moved it all to SGOV which is going to be paying over 4% by the end of the year.

ItsCadeyAdmin

And against the backdrop of the dividends SGOV pays? On 100k you'd get about 3.7k in dividends annually. 90$ for that kind of service is a droplet. Its genuinely one of my favorite ETFs ever Yeah absolutely

TurnOver1122334455

It all depends on which financial institution. Ones that were relatively low - like 3% - have mostly had increases. Ones that were higher or has introductory rates haven’t moved or have dropped closer to the average. I believe the spread is tighter. As people are saying if you can get a benefit from SGOV (SALT benefit only) that is a pretty good way to go. For those without SALT we have to keep arbitraging intro rates.

ItsCadeyAdmin

This is why I personally like SGOV. It gives me direct exposure to Rate changes in short term US Treasuries without the bank potentially stonewalling me like this. Its got a 0.09% expense ratio, which cuts into my own interest, but its a tradeoff I'm okay with in exchange for the amount of control I get over my money.

CurrentAirline9065

People act like you must be bear or bull, you forget SGOV sideline gang. I choose neither!

djpeteski

You know all those HYSAs out there? Well basically many of them are just buying SGOV and pocketing the difference between what SGOV pays and they pay you. Or they are just doing the same thing on their own. Recommending SGOV demonstrates you do understand interest rates. Its very easy to lie on reddit, and the guy "who does this for a living" probably lives in his mom's basement and screams at her to bring him more cup cakes.

Equivalent-Carry-544

On paper the yields line up, but SGOV punches above its weight in states with income tax because its distributions are exempt from state/local tax, and its expense ratio is low. If you need same-day liquidity in a brokerage, a MMF can beat it, but you’ll trade that tax advantage and possibly a tiny yield edge.

bam2350

SGOV or treasury direct or HYSA

Marcus_Invests

I think the part that’s easy to miss is that SGOV isn’t the same thing as holding one T-bill to maturity. It’s constantly rolling its holdings, so rate changes can affect the fund’s NAV. That said, I’d also be interested in seeing the specific scenario where a 6-month holder actually loses money.

Xtal_D

Put $10,000,000 in SGOV.

jvaritek33c

I'm gonna be honest, $500 in SGOV vs QQQ really won't make a difference here

No_Alternative_6206

SGOV is basically as safe as cash. What can happen and what has happened before? Look at other crashes in the past. If you get too many people who sell SGOV at once because they need the cash, this is any bond fund’s worst-case scenario. Bonds are made to be held to maturity, and when they are not, people generally lose money. SGOV has an incredible volume, so there are usually plenty of buyers and sellers. In massive market crashes, it’s gone down a small bit, then fully recovered in just a couple of weeks. As you said already, these bonds recover at full maturity very quickly.

logsqrtexp

the topic is risk when holding bonds vs a bond fund for different durations and holding periods Funds have no maturity, no option to “hold until maturity” NAV can erode. for SGOV it’s moot because there so little duration risk anyway OP doesn’t need to hold “at least x” not to lose money fin.

t3chi3

I have a lot of SGOV as well, but like to keep it there for a bit. SNSXX is pretty forgiving for buying and selling frequently and 24 hour liquid.

Kakakee

I would put the lump sum into SGOV and DCA in 10% of the remaining amount weekly or monthly So it’s less and less getting put in over time. Plus getting monthly dividends from SGOV and keeping the money somewhere safe and stable.

bobdevnul

Even better with VBIL, 0.06% vs 0.09% for SGOV. VBIL is functionally identical to SGOV. They are both 0-3 month Treasury bond funds. A lower expense can lead to a slightly higher yield, but the quoted yield is after the management expense.

SnS2500

I've held CMF in the past but the current environment is disastrous for muni and other bond funds. You would have lost money holding CMF this past year. CALI would have gotten a 1% total return, so a better than losing 2%, but SGOV or another t-bill etf or money market is currently far better for any top bracket Californian for cash.

DoinIt4DaShorteez

There's a difference in that FDLXX mainatains a daily NAV of $1.00 and the daily dividends it accrues go into a separate bucket. So when you take money out of it, you never have a cap gain or loss. You buy at $1 and sell at $1. The short-term treasury ETFs like SGOV, the accrued income gets built into the market price. So they go up about a penny a day. So if you buy let's say on the 5th of a month and sell several months later on the 20th, you're going to have a small capital gain. Same thing in reverse, if you buy towards the end of a month and sell at the beinning of a month, you'll have a small cap loss. It doesn't really affect your total return, but it's an extra accounting step that has to be dealt with at tax time.

Rodrain2

It's him that does not understand the ETF. Just look at 2022 when interest rates were rising exponentially and longer duration bonds were getting killed, SGOV gained 1.5%. Tell dude to go sit down

Wendy888Nyc

I use SGOV in my brokerage account but recently starting parking cash in FDLXX because it's a drop easier for future withdrawals. Are these 2 options basically the same otherwise?

Prize_Raisin7936

SGOV + GPIX + individual shares + a little bit Gold

logsqrtexp

Yea - FWIW, Money markets (SWVXX) are very close to SGOV 3.35 net vs 3.5 net 🤷‍♂️

logsqrtexp

I wasn’t talking about SGOV in my last comment, though, which has a short enough duration holdings not to see principal erosion when longer term rates go up. With SGOV it doesn’t look like any holding period is relevant. It holds 0-3 month tbills and so is immune to most duration risk.

UncleTito27

Better than SGOV

Pure_Psychology_2700

i think what happened is the OP got bummed over NAV dips after a distribution and didn’t realize the gross return still shows the face amount and interest; if you hold to maturity you’re fine, the only risk is a tiny price drop you’d only feel if you sold right after a rate spike. basically there's no scenario that makes SGOV lose principal if you stick around for the 3‑month roll.

koalaification

i sold my nvda from my roth ira at 222 last week, then it spiked up to the current price u see today (234). i regret it a bit but i did think the price was gonna come down again to the 199s/low 200s figured ill buy in when it goes low again. (cost basis at the time was 210 which i felt was too high) i did the same w my VT back in march, sold everything at the bottom and the stock skyrocketed the next day. i didnt buy back in, thinking itd crash again. foolish foolish foolish. i was scared id lose what i started out with, i couldnt bare to see it go negative so i sold but if i had just stayed it would have been an incredible run. i put all the money from that VT sell in my brokerage into my HYSA (it was getting 4.25% at the time, now it's 3.6%) the roth ira money from nvda i placed into SGOV. i figured the low gains would be preferabld to a negative year or stagnation but i was wrong, things can really turn around and u dont wanna regret missing the gains bc u pulled out

alex_57_dieck

That post, and OP's reply, and the context of "financial advisor"'s claim are entirely about BIL and SGOV. The replier mentioned bond ETFs, in a context that has no need/make no sense to generalize to arbitrary bond ETFs, beyond BIL and SGOV. That seems like a textbook definition of strawman. Of course, we can agree to disagree. Happy a good day.

Wigglebot23

The "hold for three months" strategy will in fact work for SGOV since three months is significantly longer than SGOV's duration

rithsleeper

That’s a secondary one. I’ll have to dig for the original . It might be deleted. The original post I was clear about BIL (I didn’t say SGOV) but essentially the same

rithsleeper

See even this I think is wrong. And I thought of this scenario. But SGOV ladders its bond purchases. So the majority of the holdings would be about to mature: only the bonds that were purchased in month 5 would have a meaningful decrease in principal. I.e. SGOV buys $1k of bonds every day and the last day, and interest rates spike to 10%. Well that last day the 1000 would be worth $990 (4% interests rate purchase) down to $975 ($60 loss due to 6% increase) that’s what the new bonds would be sold at the new rates (10%=$100 divide by 4=25). So you’d lose $25 but one the initial investment of 5.5 months, you would have made like $72. I’d have to do the math but I still don’t think that’s enough.

ay-guey

you can catch a similar dividend with SGOV in the meantime without eating the price drop. if i were jumping in VTIP for the next few years i'd prefer to have a lower entry price for long term gains.

Xenikovia

You build your emergency fund in your taxable account first. Since it's emergency first and growth second in the taxable account, i'd invest it right now - 20% to 30% VOO 70% to 80% SGOV (0-3 months) or SHY (1-3 year treasuries)

Automatic-Unit-8307

I am down $500 on SGOV...but up thousands of they included dividend on the cost basis

Livueta_Zakalwe

I’m using a modified version of the Permanent Portfolio - about 20% in gold, 25% cash (SGOV), 30% equities (various ETFs) and instead of holding long bonds (0%) I’m in various divvy stocks, DGRO, VYM, VYMI and some covered call ETFs (GPIQ, GPIX). If (when) the 10 year gets to 7%, I’m going to start building a treasury ladder (no bond ETFs - look at TLT and VGLT - 20 year bond funds losing value every day while paying less than the actual 10 year!). Sorry - a long way to say SGOV is fine, but in general avoid the bond funds like the plague in a rising interest rate environment.

irlsheldon

Look, I 100% agree on the conclusion, the risk is practically zero. But if you are looking for the worst case scenario, it's when you buy at low interest rates (< 1%) and then get a quick spike of interest rates RIGHT BEFORE selling. All other cases as you mentioned are safe. The quick spike before selling is problematic because the market would price the interest rate spike immediately into the SGOV price but you would not have the benefit of waiting X months to gain from the increased interest rate.

rithsleeper

A spike is what I meant by 5-45% interest rate. That’s why I even gave “the guy” that and said there might be a small loss on paper but it would all even out if he held to 6 months and would have a profit. My longer thought process is, day 1 I buy a 3mo t bill for $10,000. Day 2, something happens where interest rates jump from 4% to 13%?! Like what? How, why, but whatever…. After 3 months. The T Bill is worth….. $10,400 right? Money made, nothing lost. I was clear we are holding past 3 months, not “I may have an emergency at week 2 and need to cash out… Now, I realize SGOV is laddering buying bills. So the scenario I would think might be an issue would be a continuous raise that would happen a month into the process where the month 2 T Bills purchased still have a month until maturity and are still underwater. However, this is why I clarified holding to 6 months to concede the 3 months has a slight chance to lose maybe 1% realistically but would all come back if continued to hold. Maybe if interest rates were raised 2% every month for 6 months in a row? But even then I still don’t think there would be a loss.

No-Choice-8876

you’re right that if you \*just\* sit for the term, SGOV is basically zero risk. the only price hit comes if you try to sell \*before\* the next 13‑month bill matures and the short‑term yield spikes. that would only happen in an overnight rate jump—pretty rare. that’s probably what the second guy was thinking when he said “if I have to explain how rates work, this is over your head.”

Informal-Lime6396

The guy OP was referring to mentioned bond ETFs, not SGOV.

not_my_monkeys_

OP is confused over the difference between SGOV and holding actual bonds that have maturity dates.

alex_57_dieck

we are talking about SGOV though, not an arbitrary bond ETF. You are too close to maturity for this to matter

qwembly

Bonds have been awful, but now should be returning 5%. Short terms treasuries should be around 4%. Not sure what everyone else us doing, but for the first time in my life I bought some Bonds, and I also have some money in SGOV.

abeBroham-Linkin

SGOV isn't going to make you rich. It's to be 'safe' when everything is going downhill (market). Even if inflation hits high, SGOV would be better to have vs negative

Infamous_Ad8730

You are mostly correct, except the 3 month hold is not. You will always make some money on SGOV unless ultra short term US bonds go negative (never). 3Months has zero to do with it.

logsqrtexp

Holding a fund (SGOV) isn't the same as owning bonds. With a longer duration (10, 20 e,g,) a bond fun can lose value since there's no concept of holding to maturity. SGOV is such short duration there isn't much as much risk so the fund wouldn't lose "much" value. But the "hold for 3 months" strategy only holds if you have actual bonds, rather than shares in a bond fund. Go ahead with SGOV :)

Me-Regarded

It depends. Not that risky depending on what you are trading. Shares, pretty safe. But you can get stuck and if you have a bunch of margin costing you daily and you can't sell, that sucks. I mostly use margin intraday if day trading, I can go nice and heavy and not worry about taking money from SGOV unless that's how it goes down end of day

spddemonvr4

From a finance perspective, they are zero risk. Your capital will never decrease. The only thing that changes is the Interest rate, which isn't part of the risk equation. That's only opportunity cost. All risk is calculated against the treasuries and SGOV is an easier way to hold for shorter terms than buying the 3mo treasuries and cash being tied up. I hold my cash in sgov instead my brokers sweep accounts that pays me .00003% a month. Then when I find a trade with potential upside, I can liquidate the sgov shares and buy new positions same day.

54415250154

There are a lot of types of risk, you are talking about interest rate risk, but there are many other types of risk. I would disagree that holding SGOV/BIL are "zero risk". They are certainly low risk, but purchasing power risk, reinvestment risk (not really relevant here but just giving some examples), political risk.... these are all worth considering. Risk can also be defined in many ways and it all depends on your personal goals and tolerances

Elendil2500

Maybe he held SGOV one time and got confused because his brokerage didn't count the dividends received from SGOV, so on paper it looked like he lost money even though really he didn't?

Negrom

Basically nothing. The main risks with $SGOV are its yield falling as interest rates decline and its returns being outpaced by inflation. There can be tiny short-term price fluctuations, but barring an extraordinary disruption or default in the U.S. Treasury market, the real risk is about as close to zero as you can get.

PHL1365

I was just evaluating strategies on how to invest that cash. Just wanted to get something a little bit better than SGOV or CD rates. In the meantime I was evaluating how to create a medium term bucket inside my IRA. Google basically said I don't need one.

Dry_Report_3494

SGOV it number 1, 2nd best SGVT fuck what everyone else says.

thorn960

Berkshire really doesn't follow the index closely. They are not tech heavy enough to follow the S&P 500. I like them because I feel like they will do well if we have an AI bubble crash. I have a 40% position in BRK b. It's a good one if you are heavily taxed on dividends since it doesn't have one. Seems like a bad time to get into bonds unless you think we are going to get out of Iran soon and inflation is going to go away. Raising interest rates will eat at the value of your bond fund or the value of individual bonds on the secondary market. The only bond fund I do is SGOV because it's all 3 month T bills. Buying individual bonds and holding to maturity is an option but inflation could eat away at it's value.

Ok-Disaster-551

I'm 40% cash (SGOV actually). The rest in equity. I see SGOV as the middle ground right now. Waiting for something big to show up on either the equity or the bond side to see where to go.

viperex

There's always SGOV and its kind

True_Place_3835

True, but I don’t understand enough about economics to determine if I can get an equal or higher yield with SGOV 6 months from now when I can lock in a rate for one year with other options at near or over 5% pretax

LanceX2

12 month EF + 10K sinking fund all in SGOV. outside of that aim investing and paying down my mortgage

Accidental-Genius

I did basically the same thing and just parked it in SGOV while I figure shit out. I may even buy back into the same positions but I’m up more than I ever dreamed I would be and don’t want to fuck it up.

leraning_rdear

SGOV is good. Consider VTEAX though there is some risk to offset Federal tax exemption

082426grateful

This is good advice. Happy with my large investment in SGOV, though I’ve had to peel a bit off of late as life is getting expensive. Holding SGOV inside and outside of retirement accounts.

DoinIt4DaShorteez

So your math: Acct value is $27k, you say 10% ($2,700) is in cash and that's 2 years of RMDs so your current divisor is around 20 and your annual RMD is $1,350. I don't think it's necessarily a bad idea to keep 2 years worth of cash, but sweep accounts are usually low interest. If you are not getting over 3% in the sweep account, I'd put the cash in SGOV, even though we're really talking about a smallish amount of money so it won't make a huge diff. I think the allocation of 60/30 VOO and SCHG is fine, nothing really to argue about there. Only thing I'd say is that if I'm correct about the RMD divisor currently being around 20, don't forget you have to empty the account by the end of year 10. So if you're taking small RMDs, the account value could easily still be worth $27k or more in 10 years and if you've only been taking the statutory RMD amount in years 1 - 9, you'll have $27k+ dumped in your lap in year 10. Could have some tax consequences, but they probably won't be awful.