USFR

TheImpPaysHisDebts

Treasury BILLS (TBills) are very short term (less than a year) government "backed" investments that pays you interest, but how it works is you buy the TBill at a discount and get paid the full amount at maturity. So FOR EXAMPLE you purchase a $1000 26 week TBill for $950 and in 26 weeks, you get $1000 (you made $50 interest that is not taxed at the state or local level, but is taxed at the Federal level). This sounds like what you want to do. Treasury BONDS are very long term (20-30 years) government "backed" investments that pays you interest every 6 months. So again, FOR EXAMPLE, you buy a 20 year BOND for $1000 and it pays you $5 every 6 months in interest (taxed the same way as TBills). At maturity, you get the face value of the bond back (in my example $1000). Treasury NOTES are medium term (2-10 years) government "backed" investments that pays you interest every 6 months. They are basically the same as Bonds, but they typically pay a lower rate - so in my example maybe you get $4 for a 10 Year Note or $2.50 for a 2 Year Note. Tax treatment is again the same. Normal interest in a bank account is taxed as regular income levels at the federal, state, and local levels. All 3 types of treasuries GENERALLY pay slightly higher interest than a high yield bank account, but your money is much harder to access and liquidate in an emergency. For example you can sell that $1000 BOND before it matures, but you may only be able to sell it for $925. In a bank account you can get the money essentially immediately - and it is all there. If there's a chance you need the money before 6 months, pick a high yield savings account (likely a hair over or under 4%). You can also look at something like an ETF - WisdomTree Floating Rate Treasury Fund (USFR) which is slightly less than a HYSA (and has an expense ratio), but it is state and local tax free - so if you are in a high income tax state, it may make sense.

er824

It depends on the money market fund. I use USFR for cash, it yields a bit more than the MM fund I have access to at my broker and is state tax free.

PokemanAshy

If you were scared of quick successive hikes, could always suggest USFR as well. But there's really not much difference if someone actually has a bank account for current month spend. 

SouthofCentralCoast

Yes to USFR. I just checked Morningstar and over the last 9 years on a price of around $50 it's moved around 30 cents. That's including the 2019 Covid crash. I've had this and BIL, and my direct objective with these is something better than a bank and I can withdraw at any time (unlike CD).

Brave_Inspection6148

Discipline needs to beat out motivation. You're motivated to make money, but you are -- at present -- not disciplined enough to understand there are different ways to make the money. Max out your IRA, 401k, and HSA. Contribute a little to a 529 if you plan on going back to school. Put a few months cost of living into I-bonds, T-bills, or treasury ETF like USFR or SGOV for a rainy day fund. Play the long game. When you have net worth in the millions, you will be the one selling covered calls for the premium, and not the one buying them with no hope of exercising. By then, you'll be happy with a 0.5% gain per week (25% per year) from just premium and won't even need to check daily.

Thermogenic

I prefer USFR to SGOV personally but honestly they are going to behave pretty similarly. In addition to USFR I also hold VCRB, which is Vanguard’s actively managed core bond fund. It holds the bulk of my bond holdings. I have some EMLC (emerging market local currency) as well, but that’s just a small hedge against the near term monetary policy continuing to weaken the dollar.

Putrid_Pollution3455

Short duration like SGOV and USFR, yeah. Long duration? No.

Severe-Weekend-6664

USFR (floating rate Treasuries) and BIL are worth a look for short, liquid yield comparable to SGOV. TLT is long-duration though, so it swings on rate expectations rather than sitting like cash, which matters for a float strategy.

Bush_Killed-Harambe

USFR

sparkle_and_twist

I like USFR for short holds

cheezweiner

VGSH (slightly higher yield) and USFR (slightly less volatile/price swings)

iDidaThing9999

[https://yieldfinder.app/money\_markets/](https://yieldfinder.app/money_markets/) TFLO & USFR (which are functionally the same) is the correct answer for cash storage in states with state income tax

boolda

PULS, USFR, VUSB. All are good short term bond fund with decent yield.

TheDev1ce

Yeah, I just bought back in. I guess I didn't consider a sideways grind as an option. But it seems like the overheating is over, at least in the short term. I did get back in (slightly) lower than I sold out, though. And I bought USFR over the last two months, so I made a bit of money for my troubles. But probably not worth it.

nupper84

Take your profit. Pay your taxes. Put the rest into something you're more confident in like a broad market etf. Put whatever you need soon for life stuff in something like SGOV/USFR or a HYSA. Then live without stressing over the stock.

kornhans

I asked the robot to explain this, sorry for the AI rant, but the original idea is accurate: It is completely reasonable to want to protect your beloved home and avoid sequence of returns risk at 69. The primary vulnerability of your current setup is the Vanguard date-based fund itself. Because target-date funds automatically rebalance internally, they will mechanically sell off a portion of your stocks during a market crash just to maintain their fixed asset ratios. To survive a 4-to-7-year financial crisis without being forced to sell stocks at depressed prices, you need to unbundle that all-in-one fund and implement a Dynamic Bucket Strategy. Here is exactly how you can restructure your $400K portfolio to guarantee short-term cash flow while leaving your equities untouched during a downturn: 1. Calculate Your Annual Income Gap First, determine the exact dollar gap between your "decent social security" income and your total annual living expenses, including the payments on your remaining $200K mortgage. * Example Computation: If your total yearly expenses are $65,000 and your Social Security covers $50,000, your annual portfolio withdrawal need is exactly $15,000. 2. Size the "Safe Bucket" (Your 5-Year Crisis Buffer) Multiply your annual withdrawal need by 5 (e.g., $15,000 × 5 = $75,000). You move this exact amount into highly stable, liquid assets like a Money Market Fund (MMF) or an ultra-short-term Treasury ETF (such as SGOV or USFR). You currently have 10% ($40K) in short-term funds, meaning you are already more than halfway there and would only need to reallocate the difference to fully fund this buffer. 3. Allocate the "Growth Bucket" The remainder of your portfolio (e.g., $400,000 - $75,000 = $325,000) is invested entirely in broad-market global equities (like a total US and International stock index). This portion is left alone to compound and outpace inflation over the decades you have left. 4. Execute the "Positive-Year Only" Refill Protocol This rule is the engine of the strategy and ensures you never sell at a loss: * During Positive Market Years: If your equity Growth Bucket finishes the year with positive returns, you sell enough of your stock gains to top off the Safe Bucket, restoring it back to the full $75,000 maximum. * During Negative Market Years (The Crisis): If the stock market drops, you sell absolutely zero equities. Instead, you withdraw your $15,000 living expense directly from the MMF. Your cash buffer will temporarily deplete, but this automatically buys your stock portfolio up to 5 consecutive years to recover without ever forcing a sale. By mechanically separating your immediate living expenses from your market-exposed assets, a financial crisis simply means you spend down cash you already safely set aside, ensuring your home is never put at risk.

Buck_98

Good info. USFR and VMFXX look to be nearly identical and both are about 0.6% higher than my current HYS rate. I realize 0.6% won't be life changing but it'll buy lunch a couple times a year. Do you put anything in T-bills directly or just use a fund that invests in US Treasuries? I roll 4 week T-bills (currently at 3.8%)

Thermogenic

I basically have monthly needs in checking, quarterly in HYSA and the rest of my cash equivalent in $USFR. It’s an ETF that holds floating rate US treasuries that are easy to get out of if needed.

Cav829

I tried to remove all my shitty bond funds from my 401 and replaced it with just buying I-bonds and bills directly and then instead of parking excess cash in the bank, I go for USFR or SGOV. Not really a big fan of anything else with bonds, yeah.

---LiterallyWho---

lfg my USFR is about to go crazy! 0.5% yield here I come!!

Putrid_Pollution3455

That is my emergency fund 99% USFR thought it’d be funny on here. Got 20x that 😂 but not comfortable flexing it on the internet for all to see

hotforlowe

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

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.

YTLupo

USFR and SGOV over the weekend is the best play

Fabulous-Transition7

After learning about the high fees that comes with SPAXX, I moved my money to USFR. USFR is more tax efficient as well.

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.

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. 

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.