USFR

FrankDrebinOnReddit

Short term T-bills are both safe and stable (they're not sensitive to interest rates). Longer duration treasuries are safe (they'll pay at maturity) but subject to interest rate risk if you sell before maturity. T-bill funds like SGOV or USFR are the best bets for what you're going for. You can save a bit in expense ratios by buying the treasuries directly, but you end up paying a bit in spread if cashing out early and the amounts involved rarely make it worthwhile for T-bills.

dongkiru

I keep small amount in cash and rest in SGOV or USFR. And sometimes STIP. But I'm not as diligent about it on Fidelity as the cash is automatically converted back and forth into one of the core treasury money market.

Flat-Cod-6016

USFR any comments

Flat-Cod-6016

Okay, I’m gonna ask on here cause this is Bobble Head correct OK I checked earlier. I’m about to transfer live some of money from SWVXX which I’m gonna be taxed on terribly to USFR. Any suggestions? Am I doing the right thing at the moment?

Mzungufarmer

Im not going to get into the greeks, but I really just pick stocks I wouldnt mind owning, wait for a red day and sell the csps under the current share price. Tho thats where delta comes in...or just do it with vibes. Make sure you have cash to cover (hence cssh secured). Also keep your broker in mind. Robinhood gold apparently pays 3.3% on unsettled cash, im not a complete degenerate so I use etrade...downside is high commission and you have to manually put your cash in USFR until youre assigned.

WasteProfession8948

USFR, SGOV, etc. are short-term government funds with highly predictable NAVs. They have monthly sawtooth patterns with a steady rise in NAV over the course of each month as interest accrues on their underlying Treasury holdings. At the end of the month the NAV drops by the exact amount of the payout. Source: Have held these funds in my portfolio for years to park short term money for upcoming expenses and travel. Much easier than individual short term bonds or tracking CD offers and expirations.

WasteProfession8948

Bond funds (USFR, SGOV and similar) are fully liquid. Similar to HYSA rates and state/local tax free.

Fun_Equivalent9773

USFR, just chill for a few months

Cav829

I'd start by asking him his risk tolerance. I'm guessing he is over 60, so I don't know if he's looking to get super risky. Most people here are younger and might hate the answer, but simply putting it in USFR or SGOV is always an option if he's just looking to make more than a bank account. SCHD and other dividend ETFs are also a wonderful option to look at.

Metalsonicblackjesus

Hey I started with a portfolio very similar to yours but then I realized that at a young age (20s-30s), it does not make sense to hold Bonds and the international stuff really isnt helping much either. So I took my portfolio that looked like yours and condensed it down into this: Brokerage: ITOT/VTI: 80% CASH: 15% (park it in a high yield thing like money market or USFR ETF) Play money: 5% for taking riskier bets for fun Roth IRA: FZROX - 80% FZILX - 20% Once you get into your late 40s/50s, then you can start thinking about Bonds again. But at your age, I would skip it entirely. A lot of people would say just get rid of the international stuff entirely. I did in my Brokerage account, but I felt safer keeping some FZILX in my Roth just in case there are a few years where international beats US. At least I will have some exposure. It's not like it will be a huge switch, I cant imagine international will completely destroy US, but if it slightly outperforms a few years then it will feel good having that little bit of FZILX. And if it never outperforms US, at least I only have 20%.

-sakuranbo

I have 400 shares of USFR and lose the income gambling on options need to stop ts eventually

Odd_Weird_5358

USFR

CrunchyMage

It doesn't really matter as long as you're getting the risk free rate at a minimum. I personally think just putting it in a brokerage and using SGOV/USFR or money market ETFs is the play. You have full control there and can easily move it to other ETFs if you wish, and nice to setup habit to regularly put in money in brokerage and invest. Only downside is it usually takes 1-3 days to get money out of brokerages, but usually that's not a problem. If you want IMMEDIATE ACCESS rainy day, I think Wealthfront is a great option. It's a checking account that gives you the risk free rate passively. I'm not a fan of the withdrawal restrictions of CDs or savings accounts, so I don't think those are the best play for rainy day imo. You can pretty much get those rates but way more liquid with money market ETFs.

Shiz_in_my_pants

For an emergency fund where I can have instant access to the money I use a local bank in a boring bank account (like a HYSA). The funds are available to me right now, and there's the bonus of being able to walk into the bank and talk to a real person. (Gettin' real tired of talking to AI agents on phone calls.) The interest rates are awful, but that's the cost of having the funds immediately available I guess? For slightly-less-emergency funds I have it in a cash management account (cma) with Fidelity. The CMA kind of acts like a bank account, but with the bonus of investing it in whatever you want, as well as just leaving it in a money market fund. Depending on the current rates I'll have it in a treasury-only fund (exempt from state taxes where I live), or a regular money market fund, or a floating rate treasury etf (TFLO or USFR for example, also largely state tax exempt). These are pretty stable funds that don't fluctuate a lot, so I really don't have to worry about selling at a loss, and they pay a little higher over money market funds. The CMA will take a few days for the funds to be available to me if I need it for an emergency, but that's what the local bank is for, so I'll still have something I can use immediately while waiting for the CMA funds to free up.

mallanson22

I park my cash in USFR

booobReviewer

The framing matters more than the allocation here. For someone who grew up poor, cash IS safety — suggesting stocks can feel like suggesting gambling. Instead of "invest," frame it as "preservation against inflation." A practical first step that avoids the psychological hurdle: buy short-term Treasury bills (4-week or 8-week) through TreasuryDirect, or a money market fund like SGOV or USFR. These pay 4.5-5%, are virtually risk-free, and feel less foreign than stocks. Once they see the interest hit their account each month, the concept of money working for them becomes real. Also, don't push too hard. At 5 years from retirement with a pension, cash isn't the worst position — they have less sequence-of-returns risk than someone with 30 years ahead of them.

Fun_Equivalent9773

I wouldn’t sit on cash, put it in USFR. 80 IQ here

crazybutthole

USFR Treasury fund pays about 3.6% BOXX - sells box spreads and pays out ~4.2% (apy) in gains every day. I don't know any 5% guarantees But if you did maybe 80% BOXX and 20% VOO that should average to 5% or even 6%

close_tab

SGOV or USFR and chill.

mallanson22

Park mine in USFR

Putrid_Pollution3455

But what if the stonk market crashes! Gasp! 😱 /s Ok you little shit…here’s the everything bagel; 10% each…( GLD IBIT TLT USFR VTI VXUS SSO SPYI ANGL PDBC)

HGHUA

I prefer USFR or SGOV, same idea, no state tax too.

Putrid_Pollution3455

there's alternatives, the Harry Brown PP (great marketing name btw) 25% VT/USFR/TLT/GLD pull off whatever is up, if everything crashes, you're 25% short term treasuries, a cash equivalent.

Putrid_Pollution3455

I don’t just think, I sell everything and collect interest via USFR 😎 good luck gambling tho

Putrid_Pollution3455

USFR 🚀🚀🚀🚀😌🧘‍♂️

Putrid_Pollution3455

If nothing stands out, stick to the basics of VOO with a counter balance of some combination of USFR TLT gld kmlm

Welcome-To-NBA-Jam

USFR will adjust faster to interest rate changes which is a positive in environments where interest rates are rising, but a negative when they are falling. SGOV trails changes. The other benefit is that it's at about $50/share, which makes it a bit easier to get smaller amounts out if needed. It is more expensive at a 0.15% net expense ratio. Both pay very close to the same in dividends currently.

PM_asian_girl_smiles

USFR...I was recently all in on SGOV until I found out about USFR

PM_asian_girl_smiles

USFR 😎

PM_asian_girl_smiles

I prefer USFR over SGOV myself, but I agree with your logic.

PM_asian_girl_smiles

SGOV or USFR have better yields and state tax exempt. They are ETFs so it takes a day for it to settle once sold. But they are liquid enough.

PM_asian_girl_smiles

Or better yet, USFR.

PM_asian_girl_smiles

Consider SGOV (T-bills) or USFR (floating rate treasury notes). They are both ETFs that high extremely liquid, safe and pay distributions higher that money markets and HYSAs. I keep a 1-year emergency fund and some other funds that I need to keep handy in USFR, but I used to use SGOV. They also are state tax exempt which is a plus if that is something you need to consider. Both are excellent alternatives to HYSAs and money markets.

PM_asian_girl_smiles

This is where USFR shines over SGOV.

PM_asian_girl_smiles

Floating rate notes (FRNs) are where I keep my emergency fund at. Used to keep it in SGOV until I found USFR.

Putrid_Pollution3455

I’m a huge bear; only acceptable positions are USFR gld or TLT. That’s how we survive and thrive less during bull markets but can buy the blood on the next inevitable dip

Putrid_Pollution3455

USFR is short term. I’m expecting something very bad by end of year where I redeploy. If I’m wrong I’ll just boglehead forever more. If I’m right, I play the corn 4 year cycle until I have enough to bless everyone around me with generational wealth

Putrid_Pollution3455

Saylor moon breathed about dumping bitcoin to fund interest payments right as Bitcoin hits that neckline…just like it did last cycle before the final leg down. I’m going to buy a put ladder for October. Using the yield from USFR. The bulls will laugh at me hiding in treasuries while the market cranks to all time highs, but I see the black swan of rates cutting to zero on the short end while they release long term to the market; when long term yields blast past 5% due to inflation concerns, that’s when this party really gets started. God bless and good luck. I’m moving to my bunker and stocking up on dry goods. Maybe even fresh water

Putrid_Pollution3455

this is the way. My yolo portfolio is just straight USFR and my retirement accounts 100% VOO that I haven't managed to outperform for 7 years? Up Bigly.

speedlever

Not entirely true. SGOV was 95% state tax free for 2025. I also like USFR which was 99.95% state tax free for 2025. Yeah, I keep my emergency and spare cash in these funds too. I figure anything quick that comes up I can put on my credit card. Otherwise, a day or two to move cash isn't a problem for me.

WeAudiHere

I guess the question would be would JEPQ at 12% yield, yield higher returns than taking this chunk of change and either keeping it in USFR vs moving it to QQQ or VTI. I want a safe place to keep this as an alternative to a high yield savings knowing that I will be using it in the next 1-2 years

WeAudiHere

USFR is rolling high yield federal bonds shielded from state income tax, at a rate of 3.4% vs JEPQ almost 12%. I already hold QQQ and VTI in multiple accounts including retirement

WeAudiHere

Basically I want to buy one ring and not have to go back and trade up, she wants a natural diamond (which I don’t agree with but whatever not my choice), and I can take the money that I have saved in USFR and just increase the amount in the next year or two. Even with tax drag I’d be making more with JEPQ than USFR

DeerComprehensive909

I'm not familiar with USFR but as a JEPQ investor, I'd encourage diversification in some growth ETFs (QQQ, VTI, VOO). Also fairly low risk but will allow you to benefit from more of the gains we've been getting lately.

Cav829

Global bonds are interesting. Something like BNDX has been honestly very steady since 2002. But it's also been fairly in line with just the no sweat option of USFR/SGOV (plus those have tax benefits). Personally, and this is more what I am doing than necessarily financial advice, I am largely sticking to short-term options like SGOV, USFR, or just straight buying iBonds or T-Bills. Or you could look at TIPS. Sure, there's a little less upside, but the idea of bonds is not to be a vulnerable asset to market disruptions. I do know people look at TLT at pretty historic-low levels and think it looks incredibly tempting. I actually did add some TLT to my portfolio when it crated and rates went toward 4.5%, but I sold off maybe a week and half ago as the conflict looked likely to continue. Mind you, if you're looking at 20 years+ into the future, you're safe to put the money there. That said, look at today, are bonds moving with the news of potential global risk because the situation in the Middle East is a problem, or is it just moving with the 10-year yield? TLT is down over half a percent. As long as it correlates with the movement of the 10-year and isn't showing the classic properties bonds do of serving as a hedge, I think you'd be better off not leaving yourself vulnerable.

Qs9bxNKZ

Max out your 401K. Then your IRA. That will suck up a huge chunk of your free cash. You don’t appreciate it now, but the tax deferment at 30 will be great. Then 50% DCA into VTI and QQQ (50/50). 10-20% into a bond like USFR or SGOV. Keep the rest cash for when you want gift shopping Slowly move to a more interesting portfolio. Keep that 50% in equities and shift out of bond funds. 1. Tax deferred 2. Index funds for total markets 3. Blue chip stocks (blue chip to you, not everyone else) 4. Buy a Tesla. Save on registration and gas in NJ

Putrid_Pollution3455

all depends on your goal; set and forget? VT. Want a lil nuance? VT/IBIT/USFR....want to crank it up a notch? SSO/KMLM/IBIT. Want some yolo-fueled inspired AI-maxing-goon-ascending hocus-pocus? YOU. The S&ME500. You work on increasing your skills and savings rate, which will dramatically help you more than finding the "next big strategy". Until your account is massive, your savings rate is more important than your asset quality....but if you insist on lighting money on fire, TECL/BITX/TMF in October and sit in USFR until then.

Putrid_Pollution3455

some of us bears are millions into USFR

Revolutionary-Tie263

Put $750,000 into USFR

Putrid_Pollution3455

I agree but my most bearish position is USFR

Putrid_Pollution3455

Not just that, I'm a bear with AI; I only use TA for psychological expectations. My real strategy is owning three uncorrelated assets with rules. Only down -3.25% ytd in unrealized losses, mostly from aggressively averaging down into ibit during bitcoin winter. Going to stack USFR until VT or IBIT break down. target 33/33/33 right now it drifted to 20/40/40 due to recent bounce. I fully expect max pain sometime this year and maybe we're already over it

Putrid_Pollution3455

Ew…USFR instead of a HYSA

pureghostt

Throw 40k into $USFR. Save 3k to play with

Unique_Mortgage_7827

Moving cash from HYSA to taxable brokerage. No immediate purchases planned but want to maintain some liquidity while focusing some capital towards growth and long term holdings. Wanting so capture some of the potential AI growth. Been educating myself via most available online tools but looking for thoughts, opinions and recommendations. TIA $77k Total 30% Cash - SPAXX Core 30% Treasuries - 50% SGOV - 50% USFR 40% Growth - 40% VOO - 20% SMH - 20% AMAT - 20% LRCX

meandjarvis

If this is money you won't need for 10+ years, VOO is a massive upgrade over USFR's declining yield. Don't overthink it, people who "continue researching better options" often end up sitting in cash for years while the market runs away from them, or end up worse off than simply putting money in VOO. Keep 6-12 months expenses in something safe like USFR as an emergency fund, move the rest into VOO, and stop looking at it. I spent years cherry-picking stocks thinking I could find something better than the index. Eventually quit all that and just started DCA'ing into IVV (same thing as VOO basically). It's been about 2 years now, market went up and down, and my return is on track for the historical \~10% annual average. But the best part isn't the return, it's the peace of mind. I don't check tickers anymore, I don't stress about earnings calls, I just let it run. That mental bandwidth alone was worth the switch.

McKnuckle_Brewery

Forget CDs. Use a Treasury ETF in your brokerage account (SGOV, TBIL, USFR). Best compromise between yield and liquidity, not to mention exempt from state tax.

xboxhaxorz

Is there an etf for the mexico bonds? When i was in USD i was buying USFR so that way i could sell at anytime

Putrid_Pollution3455

Oh my god. No. If anything start beefing up your emergency fund until you can sleep at night. I use short term treasury fund USFR but BIL and SGOV are popular too.

Putrid_Pollution3455

Brother, I hold USFR VT and IBIT.

Putrid_Pollution3455

A smart combination! In retirement I just VOO…in taxable I’ve jumped all over the place but finally settled on VT USFR IBIT, with three rules to follow involving cash flows and rebalancing.

C2theC

USFR. T-bills already outperforms the S&P 500 and Nasdaq 100 this year.

Putrid_Pollution3455

I’m 33% USFR since October. What we rotating into and when bottom?

C2theC

+4.35% YTD Funny this isn’t you kept all of your money in USFR (U.S. Treasury Floating Rate Notes), you would be around +3.70% (based on current US01MY/4-week T-bill yield).

Putrid_Pollution3455

I messed up last April. This time. I'm going to be smart. I'm going to buy every single dip for the rest of the year as we sink into the abyss. I modified my own rule #2 so Instead of using up to 10% margin, I'm just going to force my two chosen assets at a certain dollar amount, hold the line, by deploying USFR. If IBIT and VT sink 50% each, then I will be max deployed. Right now, a huge chunk dunked into IBIT, but this is exciting!

False_Comedian_6070

USFR has a great return for treasuries but with its expense ratio you can actually take a loss when interest rates are very low like in 2021. Although it was only -.03% that’s still worth considering.

McKnuckle_Brewery

Seems slightly more complicated than necessary, but we all do things differently. I keep transactional cash in FDLXX at Fidelity (to avoid state tax). Cash reserve on top of that is in USFR, slightly higher yield but not as liquid, also state tax-exempt). Full disclosure, there's a few $k in a Capital One HYSA as well, just for flexibility and physical cash transactions. Current yield is 3.3%. CDs are taxable at the state level and typically have liquidity restrictions, so they are not appealing to me.

Putrid_Pollution3455

me sitting on 33% USFR gives me the same mental feedback loop. When it dumps I feel genius, when it pumps I feel like I'm wasting my life. I used to F around with gold, and that truly made me feel like a dragon/pirate. Was a fun time. Once that doubled I sold off cause I found it really weird for my safe haven assets to move like meme coins.

Putrid_Pollution3455

IBIT, USFR, VT equal portions. Bitcoin loosely follows a four year cycle it’ll probably bottom in October followed by three good years. USFR is basically a high yield savings account that you can margin against. VT is a global equity etf so if the world production increases you win.

AffectionateLeek5854

USFR/SGOV. Better rate than MMF , almost 0 state or local taxes on gain , almost 0% risk.

Putrid_Pollution3455

I have nothing else to do other than follow the plan until December of this year; at which time I'm either unloading all my USFR position into IBIT or some kind of combination thereof.

Putrid_Pollution3455

adding 33% USFR has given me such peace of mind.

Putrid_Pollution3455

take 10 bucks and get two mickies 40oz to celebrate starting investing. Then here's an idea; take 33 dollars into each; IBIT, VT, and USFR. That's bitcoin spot price etf, global equities etf, and short term treasuries yielding around 4% right now. It all depends on what your risk tolerance is, but in general, if you only have 100 dollars, I'd start paying off debt and getting a 6 month emergency fund set up at a high yield savings account. Then take 15% every paycheck into retirement of some kind. If you're a true degenerate, you'll find weird ways to save 50% of your paycheck OR MORE and throw it into various assets. Godspeed

Putrid_Pollution3455

I'm ready for the darkest depression we've ever experienced in the history of the human race; I want to see billionaires lose everything, old people to be thrown on the street, and all these entitled fat women STARVE. USFR and chill as I watch the world burn.

Kashmir79

Not sure why these aren’t more popular. [I use USFR](https://www.reddit.com/r/Bogleheads/s/0MnCwNlpu8) and it delivers [almost *exactly* the yield on 3-month T-bills](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=2FyNRIxW7TZAyIHekCNB3u) (after fees) like you were managing your own ladder but without the hassle.

Putrid_Pollution3455

Not 100% I just added 33% USFR cause it helps me sleep at night

Putrid_Pollution3455

Ibit USFR and vt

Putrid_Pollution3455

God would be a little annoyed that you’re risking this much instead of buying VT/USFR and donating the interest and dividends to charity

LotsoPasta

I personally invest in equities and bonds only because of their fundamental value proposition. My primary goal is growth, and interest rates are low relative to expected equity growth, so I'm weighted 90% equity and 10% bonds. Equities produce everything. Ultimately, it's labor that produces value. You need to make assets move for them to get something out of them, and equities are the only thing that does that. I invest in a global market index (VT) because it closely resembles the global value of equities. For the long term, i dont believe strongly in any company, industry, or country (not enough to expect trajectories wont change), but I do believe humans will crack on and continue to progress as a whole one way or another. The value of bonds is contractually defined. They will pay $X dollars over Y years unless the guarentor goes bankrupt. No other asset class has the level of calculable certainty. I invest in a US-based currency bond index fund (BND) because it's the currency I trade in, and I'm not interested in currency risk. BND is as diversified as I can get without taking on risk of other currencies. I also use USFR and GOVT for tax efficiencies and safety associated with US treasuries, and I have a small position in SPHY as BND lacks junk bonds, and it helps balance my weighting back toward corporate bonds given my use of treasury funds. I dont invest in static assets or currencies as they dont have a value-growth proposition. When you invest in other assets, it's pure speculation they will be worth more later. I think they can be valuable as wealth preservers (albeit with a lot of volitility), but my main investment goals are growth.

Extension-Temporary4

bonds, bond funds, TIPS, USFR. Depending on risk tolerance, some high yield  funds like jepq, JEPI, sphy . . . Get an advisor. But a fixed income bond ladder is probably your safest bet — it won’t generate 5% but it will get you part of the way there. Mix in some dividends and diversity, you have a decent upside with a known/limited downside. 

Putrid_Pollution3455

Calculated and smart? I just follow a modern permanent portfolio with some rules for cash flow and rebalancing; 33% ibit vt and USFR so like 300 into each. Physical gold for emergency chaos situations around 5-10% Throw money at the lagging asset, rebalance when you hit milestones around every portfolio doubling like say 1800 2700 3600 4500 9000 18000 etc portfolio cash flow into the lagging asset. I modify rule two to use up to 10% margin to force balance towards target allocation, then the lagging asset is debt first then situation normal into the laggard. Speculation based on macro; xle energy sector, ura uranium miners, sso (2x levered sp500 daily reset.)

Putrid_Pollution3455

Spy needs to break 695 or it just formed a head and shoulders on the one month. If you zoom out to the one year, you see the momentum is exhausted and it's forming a disgusting rounding shape that normally means we implode. But alas, my only bearish position is gold and USFR; just in case I'm wrong. I Came 4 times in the past 24 hours. I can nearly see the future.

Apeist

12 months income in savings in USFR, and a 50/50 split of VT and QQQ. Income is from USFR is reinvested to the EFFs. Buying every paycheck. The same as it always is.

Putrid_Pollution3455

Nice asset allocation! I’m 33% ibit, vt, and USFR with 4 rules regarding cash flows, margin, and rebalancing. Ytd 2.05% compared to 1.07% SPY.

Cav829

The longer you invest, the more you'll learn to tune out the noise. I had to fight the feeling of hating to lose money for so long, to learn to tune out the jitters, to stop worrying every time a stock sells down to support because of some random news item, etc. Every last investor will tell you they made a crazy amount of mistakes, and to this day still do. I was too young to invest in 2002 though I remember it vividly, but 2008 resulted in my best investment opportunity of my life because I kept powder dry. And it wasn't in stock: it was in real estate. This doesn't even mean you have to sit in cash: USFR/SGOV are great places to just stash cash. Ignore anyone who tells you that you have to be 100% equities 24/7.

Putrid_Pollution3455

when in doubt, I sit in USFR and gold until something interesting shows up

Putrid_Pollution3455

might not be a horrible play, if you sit on short term treasuries like USFR you'd crank out a 3.75% yield on top of it so up 17% ish depending what they do to rates sounds pretty solid boi

er824

I’ve got a fair amount of cash in my brokerage held in money market and/or USFR. Bonds are all in tax deferred accounts (Ira and 401k)

Chemical-Fun3692

This is super helpful! I will read up on these links! I didn’t notice any Bonds or mutual funds in your brokerage account and curious why that was, in specific no bonds? I believe this is what you mentioned, which I think i’ll plan on doing the same unless there’s a better way to strategize or optimize/diversify: SWTSX (MF, Total Market)/ SWISX (INTL MF) / SWAGX (MF Bond) - In ROTH IRA SCHB (US ETF) / IXUS (INTL ETF) - In Brokerage SWVXX (MMF) / USFR (FL TREAS ETF)

Chemical-Fun3692

Ok so this is what I am going to do today: SWTSX/SWISX/SWAGX - Roth IRA SCHB/IXUS - Brokerage (taxable) SWVXX/USFR - uninvested in brokerage. What percentages should be the breakdown?

Chemical-Fun3692

Ohh I see! I thought the SWAGX was in your Roth IRA. Since I am not elligible for a Traditional IRA, would I just forgo the SWAGX entirely and just stick with SWTSX and SWISX in my Roth IRA, or is it good to add the SWAGX to my Roth IRA? I would like to use the Boglehead 3 pillars to investment - which is having diversified accounts in each brokerage and IRA. This is what I am thinking: SWTSX/SWISX/SWAGX: in Roth IRA account SCHB/IXUS: in brokerage (taxable account). SWVXX and USFR for uninvested cash (for liquid money). Anything I can change to make it stronger? And regarding investing in 401k in index funds, can I invest in these same above at Fidelity since my 401k is with fidelity?

er824

SGOV and USFR and money market fund are essentially equivalent so I didn’t have a need or reason for both. I have a Traditional IRA at Schwab so that’s where my SWAGX is. My Roth is all SWTSX and SWISX.

er824

SGOV and USFR are ETFs that invest in Treasuries. You can find a list of Schwab’s money market funds here: https://www.schwab.com/money-market-funds These various cash options are all essentially equivalent.

er824

Regarding International…. It diversifies you away from just the US. The US market has outperformed the global market for a while but no idea if that will continue. Plenty of smart people say US only is fine because the biggest US companies are international businesses. Other people say that ignores large swaths of the global economy. I have no idea what the future holds. Personally I the I’m about 30% of my stocks allocated to International. Last year was the first time in a long time International outperformed the US. SWISX is fine in either in a taxable or tax sheltered account. It will tend to pay a bit more dividend then SWTSX but still pretty tax efficient. If you are holding in taxable accounts I’d favor the ETF versions. SCHB is the ETF equivalent to SWTSX, SCHF is the ETF equivalent to SWISX. SWVXX is fine, TBILL ETFs like SGOV or FRN ETFs like USFR, or TBills are all fine places for cash. Personally I found directly buying TBills to be inconvenient so stopped and just use the ETFs and Money Markets now.

Chemical-Fun3692

where did you see the portfolio? How do I find a treasury fund or know what to search for? I believe the SGOV and USFR are treasury bills?? Any you recommend? And would this be in the taxable account to use as liquid money?

er824

It’s SWTSX, assuming you mean Schwab’s Total Market fund. If you want International exposure their International fund is SWISX. You don’t need a separate account at Fidelity unless you want it for some other purpose. Their sweep options are better than what you get at Schwab for uninvested cash but that’s only an issue if you leave the cash sitting in your Schwab account. Investing, like you would be doing by buying SWVXX, SGOV or USFR, solves that problem. The downside to Schwab is having to do it manually whereas Fidelity automates (sweeps) the cash to and from their SPAXX money market for you. The manual options actually yield a bit more so are better as long as you are ok with the manual step. Personally, I don’t see a reason to overweight dividend stocks, all the stocks in SCHD are already in SWTSX and SCHB. If you do decide to hold SCHD consider holding it in your IRA to minimize the tax drag.

Chemical-Fun3692

I am completely new to investing and I’ve been trying to read as much as possible and ask questions. Please let me know your thoughts on this game plan and if there is anything you would change, take out or add? This is just me going based off notes. I am 100% open to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones? Step 9: Consider QQQ in a taxable account (but would this be redundant if I already will have SCHX or SCHB?)

Chemical-Fun3692

Also, is the QQQ necessary if I choose to invest in SCHX or SCHB which are both broader? I am not sure. Here is my game plan: Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones?

Chemical-Fun3692

Ok gotcha! To clarify, you want a short duration basically?! Ok this is my plan so far. Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?)

er824

Note USFR’s effective duration is .02 years not .2; so very short

Chemical-Fun3692

Ah thank you! When we say effective duration of 0.1 or 0.2 years what does that mean exactly, what is an effective duration? Thank you for linking me to this boggle heads write up, that is super useful! I started reading though it and it sound like a floating rate treasury is super useful and he recommends getting one for sure, I’m still learning about this. Yea the reason I ask about short term ETF’s is to see if there are others comparable with varying returns. Like for instance there are diffeent 7 days MMF with varying returns and I wasn’t sure if it would be the case with short term ETFs like SGOV. Basically I wanted to know which list SGOV came from. But if they are all similar, I can certainly get SGOV and one of the floating treasuries like USFR and even include SWVXX as the MMF. I need to write all this down! It’s starting to sound like alphabet soup. If you don’t mind me messaging you to keep in touch that be great!