VBIL
Vanguard 0-3 Month Treasury Bill ETF
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Those are some good shouts on the ETFs, I’ll definitely look into SGOV and VBIL, thanks for the heads up. As for the tariff and war periods, honestly, the biggest thing was just not panicking. When everyone is screaming about the news, I just look at the price and wait for the institutional footprints to show up. I stayed mostly in high-conviction leaders and made sure I didn't overtrade when things got volatile. It’s usually more about what you don't do during those times that keeps you in the game. I’ll try to put together a post with more details on how I handled those specific environments when I have a bit more time
I partially sold some of my stocks to cash on some profit but will remain invested. I put my cash into VBIL approx 10% of my portfolio. Will wait for some opportunity and continue to pile up some cash through my contributions
Ironically, schwab allows automatically reinvesting dividends into ETFs but not buying fractional ETFs. Fidelity is so much better when it comes to fractional shares but I still stick with Schwab for checkings and emergency fund (VBIL treasury ETF) because I’ve found Fidelity CMA doesn’t work well with third-party connections and doesn’t support Zelle.
It’s not uncommon — many have a local brick-and-mortar bank they deal with, 401(k) or similar at employer’s custodian of choice, personal investment accounts like IRAs and/or taxable brokerage at another institution, etc. Generally, it just adds complexity. There’s an argument for security e.g. having some money in a second place should you lose access to the first. For actual bank accounts, using multiple institutions may be warranted if you exceed FDIC or NCUA coverage. I’m personally not quite as concerned about SIPC coverage for brokerage accounts. Since joining an employer who uses Fidelity as custodian for their 401(k), HSA, ESOP and RSU plans, I’ve also consolidated my own taxable brokerage and IRA accounts there as well. As it is, I currently have ten accounts at Fidelity, including my main savings/emergency fund invested in VBIL… I do still keep some money (<$10k) at my local credit union and run my every day expenses through there.
SGOV is a teensy bit less expensive for many people. Trading spreads between SGOV & VBIL are close but VBIL carries a higher premium paid on each trade. previous reply to someone else: [https://www.reddit.com/r/ETFs/comments/1rqz6ml/comment/o9vx5hc/?context=3](https://www.reddit.com/r/ETFs/comments/1rqz6ml/comment/o9vx5hc/?context=3)
Your worry about Blackrock is inconsequential. SGOV is an ETF and all ETFs are structured so that if the investment manager fails - it doesn't impact the fund investment. As for the differences - you have to look at the duration of the fund. All three of the funds that you mentioned as effectively the same as ultra-short duration treasury funds. Usually, someone investing in cash and the interest rate markets is going to look at the duration based on their interest rate thesis. Regarding your comment about liquidity - while a mmf is required to have liquidity requirements - both SGOV and VBIL are open-ended ETFs and they have the exact same liquidity profile. Re: cap - gains - one advantage of a MMF is that there are no cap gains and wash sale rules don't apply. One advantage of ETF's is that there is no 30 day restriction on marginability.
My VBIL is the only one in the green lolz
I keep 80% in either VOO/ICPY or VBIL/CLOA depending on the overall market’s valuation, RSI, SMA crossovers, etc. (your standard run-of-the-mill market risk/reward technical indicators). The other 20% is for individual high-conviction stock picks, usually with deep OOTM LEAPS over shares if I’m feeling particularly gutsy.
I'll be upfront with you, I've been rethinking VTIP after the latest ppi numbers don't match cpi. Had it in there because it beat the HYSA but I'm moving to VGSH/VBIL (VBIL Is close enough to SGOV with lower expense ratio because i'm in vanguard in a taxable for this) after the next dividend payout, so 2 weeks-ish. husband's in tech so his job isn't guaranteed and kid is 3 years out from college with an okay-but-not-great 529 (i didn't want to park everything in the 529 in case they didn't go to college) so job loss and college expenses could be major factors in the road ahead, and I have planned accordingly. You need to look at your 5 years ahead and see what bond fund could make sense for you or if it makes sense to have anything at all aside from an efund, for most folks it might not, aside from maybe a house fund, and then be willing to shift as factors shift :) stagflation is going to be about riding the waves, and by asking these questions and keeping your ears open, you'll be okay.
You can just do VT as a conservative bet, which is basically 60/40 VTI/VXUS. I like 70/30 VTI/VXUS personally, but all-in VT is fine too. You are very diversified with this. If you want to be even more conservative toss in 10% BND or VBIL or SGOV.
I like the money market funds in Fidelity. The benefit to them, is that they are treated as cash in the account. If you have $1000 SPAXX, and $4000 FDLXX, and you transfer $5000 out, it will automatically liquidate the FDLXX and move the money. So no downtime, waiting to sell an ETF, etc. I keep some VBIL in my savings as well, just to eek out a bit more yield. If you have a 6 month E-fund, having a month or to in a readily liquid MM is not a bad idea for emergencies. You live in CA, so it might be worth it to keep the funds in FDLXX, as it is typically in the ballpark of 98% exempt from CA state tax. FDRXX did not maintain a minimum of 50% treasury notes/bills each quarter of 2025, so you cannot deduct any of the interest from your state taxes. As a Fidelity user, the gist of the advice you were given is good.
Best strategy is TIME IN the market not TIMING the market. Just hold. If you have any strategies that are not under you could pull that out and put into VBIL or a high yield or some bond etf , but I’d just hold. If you want to feel better about future volatility (swings) then you could allocate some into less volatile equities like the ones above or even real estate or consumer staples which tend to be less volatile to the general market
VBIL is a slightly lower expense ration than SGOV, but I read that you are more state income tax exempt (97% of the dividends) with SGOV. I forgot what it was for VBIL, but it was much lower. So any cost savings would be negligible.
Can get almost same liquidity with money market (SPAXX*), short term Treasuries (VBIL)... can compare rates. Another option is a municipal bond fund (e.g. VTEB). If in a brokerage account (taxable) the yields are tax free. Can get 3.5% tax free return approximately currently
tbh at age 20 that is way too defensive. i'm retired and i could see that as my portfolio, and i'm pretty defensive now, but not even as defensive at that. if you are putting in new money, corrections are going to be your friend if you get more growth oriented. if i was 20, i'd set aside a cushion for expenses and keep that in VBIL or any of the other short-term treasury ETFs, but the rest of the money, I would buy equal shares of VOO or SPY, and QQQ. Or add in an Ex-US ETF if you want. If money comes out of AI and chips, it's going to go somewhere else and if you have a broad index fund, that somewhere else is going to be in the index.
I really appreciate this advice. In terms of an emergency fund, I don't want to hold cash - is VBIL or another safe fixed rate ETF fine?
Might keep pace with inflation but not preferable to SGOV or VBIL or just investing in the broad market.
Not really. Don't get cute, VBIL is fine.
I would keep the cash in a short term treasury fund, like VBIL if you plan to buy a house in the next 36 months.
I'm considering relocating in the future and I'm building up cash reserves for a down payment on a new home. Are there any options right now for stashing cash on a 12 - 60 month time frame that beat something like VBIL? I'm willing to take some risk, but I'd rather avoid going full equities.
They recently dropped the expense of VBIL by 1 bps
Just a heads up, VBIL is just like SGOV but 7 bps cheaper.
I'd go with VBIL (lower fee version of SGOV) for short duration. Cheap and flexible. IBIE is also a decent option, October 2028 TIPS (inflation linked bonds).
>At Schwab one first one must move the funds to cash and then trade You can buy the stock, then sell the MF, since they both settle in t+1 . Its a trade off, fidelity has a sweep but the schwab Money Market funds usually pay slightly more, not that it will really matter. However I just prefer to use something like VBIL, again if I need cash just sell VBIL then buy what ever. I do not do too many trades so its not really a big deal.
VBIL is a great fund, nice to see fee cuts there. I suspect AUM gap between SGOV and VBIL will slowly close over next 3-5 years thus allowing more fee cuts for Vanguard!
Anyone switching to VBIL or putting additional savings there, due to the similar performance and lower expense ratio? It's small; but $2 savings on every $10k, per year.
If I wanted to earn interest on cash I would just invest in VBIL or SGOV
I mean if you simple lump sum contribute and invest at the beginning of every year you are somewhat DCAing just yearly However considering lump sum investing beats DCAing about 2/3rd of the time; and its almost impossible to tell if today its better to DCA vs Lump sum, if you simply invest at the beginning of every year for 30 years you will almost certainly come out ahead vs DCAing through out the year However you could just buy some money market fund or something like SGOV or VBIL if you wanted to earn some interest
> Or just use short term bond ETFs. For those interested, good examples of those are VBIL and SGOV.
\--First, don't tell anyone about it. Your friends, family, co-workers will be coming out of the woodwork with requests for money and idiotic investment ideas. At the very least, they can grow resentful and it can interfere with your relationships. \--Get the money into a brokerage: Schwab, Fidelity, or Vanguard. Open an account with only your name on it. \--Make sure the cash is invested in safe funds that pay a decent return -- a money market fund, or a treasury bill fund such as SGOV or VBIL \--Do not commingle this money by putting it into an account with anyone else on it. \--Pay off any high interest debt (probably your solar loan and car loan) \--If you haven't maxed out your Roth IRA for 2025 and 2026 for you and your wife, go ahead and do that \--For the rest, wait a year before changing or spending. Take some time to plan and learn. Don't YOLO into expensive new cars, home remodels, round the world trips, etc. I think you should seriously consider just investing most of it in passively managed, low cost ETFs and considering it part of your retirement savings. Looking at the financials you posted, you are a bit behind on retirement. Once you get any high interest debt paid down, you might find a way to increase 401k contributions. And make sure that whatever else you do with this money, you keep 6 months of expenses in an emergency fund. OP, I'm sorry for the loss of your family member.
As long as they are FDIC insured and to be a bank in the USA you have to be, there really isn't a risk of losing money. Just make sure it's a bank and not a fin tech middle man. However hysa follow short term rates when rates drop hysa interest drops. Sometimes you can get some into rate that will be higher for 3-6 months but it may be limited to like 20k or something. Personally I don't use a hysa , just open a brokerage and use a money market funds or something like VBIL or SGOV. You will always get the short term rate.
I have a CMA. I set my default core position to Fidelity's SPAXX, which is a money market fund. Treated like cash. Every Thursday, I buy a set amount of FDLXX, a treasury only Money Market. It is 97% treasuries and thus mostly state tax free. It will automatically liquidate when I pay bills or transfer. Interest is a smidge lower than something like VBIL or SGOV, but the function is better. I do keep a portion of my savings in SGOV, which I can liquidate in a day or two if needed. I can buy it right in my CMA account.
I have a Fidelity Brokerage Account that I treat as my savings account. I can't access by ATM (as far as I know), but I can transfer funds from Fidelity to my Wells Fargo checking account and access the next day. My cash in the brokerage account automatically goes into SPAXX, but I chose to hold it in the VBIL short term treasury fund, which currently pays 3.67%. Mainly I like the convenience of having my cash immediately available to invest in the market. I used to jump around between various HYSAs, yield chasing for that extra .1%, but now I rest easy knowing that my Fidelity yield is competitive with HYSA market rates.
Are you saying that you have a 10 year horizon before buying a house? I wouldn't use SGOV or VBIL. Those are short duration funds. If you want to just have the risk free rate - you may want to look at a longer duration treasury fund. It also depends on whether you believe if interest rates will go down or not. Alternatively - with a 10 year horizon - you probably could put some portion into higher credit risk products if you want the relative lower risk of bond investments vs equity investments. You could look at corporate debt. Something like target-maturity corporate bond funds from SSgA, Invesco or Blackrock may generate higher yield - depends also on the state that you live treasuries are state tax exempt.
I’m a 26M and I want to start saving for a down payment for a house. I max out my 401k, HSA, and Roth IRA each year and historically have put the rest of my savings in a taxable brokerage account investing ETFS. I already have an emergency fund sitting in SGOV and VBIL. I’m my time horizon is 10 years, should I just put my cash for a down payment fully into SGOV:VBIL or split it between the treasury bill etfs and a total market index fund such as VTI? Thank you!
> Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? Yes SWVXX is a MMF. Different MMF's have different yields. > It’s specifically a 7 day yield fund. I don't know what you mean by this. '7 day yield' is how the yield is reported on MMFs. Its what annualized return of the fund over the previous 7 days. You don't get that yield every 7 days. >When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! SGOV doesn't mature. That Treasuries it holds matures and the proceeds are then invested in new Treasuries. Its essentially a bond ladder with an effective duration of 0.1 years. >What the difference between Floating Rate Treasuries and Government bonds? A floating rate treasury is a type of Government Bond. Its a longer term bond but the interest rate floats so it doesn't have the same interest rate risk as longer term treasuries. USFR's effective duration is 0.2 years. >I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. Not sure I follow, are you looking for other short term bond ETFs? How many variations of Vanilla ice cream do you need? Here are some I'm aware of: SGOV, BIL, VBIL, TBIL, JPST, ICSH, VUSB, USFR, TFLO. The only ones I have any first hand experience with is SGOV, USFR and TFLO Here is an oldie but goodie: [https://www.reddit.com/r/Bogleheads/comments/11prp0b/hysa\_mmf\_cds\_tbills\_searching\_for\_the\_best\_return/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Bogleheads/comments/11prp0b/hysa_mmf_cds_tbills_searching_for_the_best_return/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
>When that account gets to $100k can I just take it out and use it? Yes >Should I be putting my money for a house in a different account? I have a HYSA but the returns on it are only like 3.5% (Amex) so I try not to use that one, thanks. You can use a brokerage account as a savings account, it depends on what you invest the money into. You could invest it into a money market fund or some ultra short bond fund (VBIL/SGOV) and those will effectively act like a HYSA, meaning no real losses and some lower but somewhat guaranteed return Or you could invest in some high risk investment that could gain 100% but could also lose everything So saving in a brokerage account isn't good or bad, its entirely what you buy in that brokerage account. For anything under 5 years I would simply do something like VBIL or SGOV
It does not matter how much you "love" or "trust" your adviser. The relevant question is, how much value do they add? How does the performance and risk profile of your adviser-managed portfolio compare to something simple like: 60% broad stock ETF (VOO, VTI etc) 40% t-bill ETF (SGOV, VBIL etc) --- OR --- 60% broad stock ETF 20% t-bill ETF 20% gold ETF (SGOL, IAU, IAUM etc) PS: I outgrew my adviser five minutes after I read one thin little book twenty years ago: "Fail Safe Investing" by Harry Browne.
The main purpose of a box spread is to create a synthetic loan or bond. Investopedia has a good article on it. [https://www.investopedia.com/terms/b/boxspread.asp](https://www.investopedia.com/terms/b/boxspread.asp) I have some of my "liquid" or "cash" invested in BOXX. So far, it's working out great. BOXX goes up in value rather than disburse interest from bonds such as SGOV or VBIL. I am patiently waiting for the fallout from any tax issues.
Not equivalent but relevant: VFQY ( quality factor) VTV ( value US ) then a lot of VBIL and bingo
Treasury Bill ETFs. Stable as fuck, good dividend, doesn't grow much though. My recommendations: BIL VBIL XONE SCHO WEEK USFR UTEN
For the responses saying to start an IRA or Roth IRA for an 18 year old that doesn’t even have a standard individual brokerage account yet is just not right. He won’t be able to access any of that til what.. 67 i think it is now?? Ridiculous Start him off with a regular brokerage account, contribute a set amount a week (say $50-$200) into $VT or $VOO (total US stock market, S&P500, respectively - very similar). This is for mid-long term outlook (5-20 years, leaning more into the latter) where it really starts to balance out and compound. For just collecting the interest in the same account (cash equivalent +about 3.8% / year as of today), $VBIL. This would be for strictly cash savings that you don’t want any risk of short term depriciation. Other than that i would set aside about 10% of the account actual cash - In the end, say 80% $VT 10% $VBIL 10% cash. Certainly open to adjustments based on risk tolerances
interesting, thanks so much for this. Will probably go SGOV until VBIL becomes a little more established
I tried an experiment for the last two months of SGOV vs VBIL. I decide to try VBIL and moved 1/3 of my SGOV holding to VBIL. I have now waited for two complete months of dividends and below is dividend payout summary from my account this month. The first column is dist-yield and the second column is SEC-yield. SGOV 12/1/25 (payout 12/4) 4.15% 3.85% VBIL 12/1/25 (payout 12/3) 2.81% 3.89% Since the dist-yield is what is deposited to my account each month, between the two, I'd prefer SGOV. The surprise is the that SEC-yield is actually higher on VBIL... YMMV.
I use both. Chase has mine and my hubby’s Roth IRAs since they allow auto-investing for mutual funds, as well as our emergency fund in SGOV and VBIL (still waffling on which I like more) so I can have it close in case we need it. However, hubby’s 401k is through Fidelity as is our taxable brokerage investing. I’m also planning to start an HSA account through Fidelity next year and transfer my HSA money over to take advantage of lower fees vs my job’s company. A couple tips: you’ll need to link the accounts both ways and sometimes it’s a bit confusing to get it done since Fidelity isn’t a bank listed on the Chase site. Money that you push from Chase (vs pull through Fidelity) will clear/settle faster although there’ll be a day or two delay.
First, congratulations on preparing for your future at a young age. Compounding will work well for you if you don’t panic when the market drops. As far as picks go, I suggest an S&P 500 ETF as your first investment. My personal choice is VOO from Vanguard. If you have earned income, you can start a Roth IRA or a traditional IRA. Both have tax advantages over a normal brokerage account, but you cannot withdraw money until you are 59.5 years old. You should investigate the differences between these accounts and pick the one that meets your goals. Do not put money into an IRA if you will need it to pay for college, housing, or something else in the short term because the penalties for early withdrawal are stiff (10% plus tax on earnings). I also use ETFs that invest in short term Treasuries instead of cash. Good for money you may need in the next couple of years because the market can drop at any time and put you in a bad position if you have to take a loss. I use SGOV and VBIL for this purpose.
There really won't be all that much meaningful difference between them, they essentially all hold ultra short term debt so most will pretty much yield the same . The difference maybe one that only holds treasuries what will yield slightly less but be exampt from state taxes, vs ones that may hold corporate debt or repo agreements, will yield slightly more but be subject to state tax Depending on your income and state one may be better then the other. If you are higher income and live in a state with higher state taxes the treasury MM may be better If you live in a state with no state income taxes or very low ones the higher yielding fund that holds corporate debt may be better. Personally I just buy something like VBIL/SGOV what are 0-3 month treasury ETFs that basically acts like a money market fund
SGOV and VBIL ETFs are short term treasury bond funds that hold their value. Very small changes due to the interest payment. Pull them up on a chart.
5 yr: VBIL 10yr: VT (still possible to lose money but low probability) 20yr: VT
SGOV and VBIL ETFs don’t lose capital.
I pretty much use Fidelity to hold cash in its core position which is a money market fund - which holds short term government debt. I do use other money market funds (like VBIL or PMMF) to earmark funds needed for lump sum payments like property tax and insurance.
When VBIL becomes more popular maybe the premium will come down. But right now VBIL has been selling at a 0.11% premium to its NAV according to [ETF.com](http://ETF.com) while SGOV's premium stayed at 0.02% for the first half of the year and then fell to 0.01%. So the net-net of it is that the 2 basis points saved on annualized expenses is negated by the 9 basis points paid in extra premium. So for me it's SGOV for tbills.
To be blunt, .02 on 100k is $20. I'm not saying not to be money conscious but that kind of money really doesn't count. Smaller newer funds can have more NAV variance, which both causes weird capital gain issues and can theoretically result in you losing money. That said VBILs been pretty stable for some time now so maybe it's fine. It's not simple to measure because VBIL started a month late, but SGOV yield YTD is 3.68% vs 3.09% for VBIL, so don't be sure you're making more money
I was always worried with VBIL volume but it seems to have picked up. Both are safe bets.
It depends on the current yield curve and where you may want to be on that yield curve. The short-term curve is inverted at the present so if you think that ultra-short term rates (the one month is a little over 4%) is going to fall more than the current 1 year of 3.6% plus the interest for 1 year - then an interest rate trader may choose a longer duration. You can also do things like take on a little more credit risk with investment grade bond funds. Or use ultra-short duration active investment grade funds. Or even target maturity funds in a ladder depending on your tax situation and timeframe. Tldr - you can make cash management as complicated as you want - but if you dont' want to time the interest rate markets or the effort to actively manage cash to eek out a few more basis points - than just keep it simple and use any ultra-short duration product. I personally think that too many people over-analyze the differences between funds like VBIL and SGOV.
"Better" is subjective. It will depend on your timeframe and any thesis that you may have on interest rate markets. Also depends on things like your tax situation and if you are willing to take on some credit risk. For example - if you are saving to buy a house in 3 years and you think that shorter term interest rates will go down - then SGOV and VBIL are poor choices. And a better choice would be longer duration treasury funds that are at least 1 year duration.
SGOV expense ratio is 0.09 while VBIL is 0.07 They basically hold the same thing so in theory VBIL should return 0.02% more what probably is not worth worrying about
VBIL has decent volume now so it is just slightly better
A ultra short term treasury fund like VBIL/SGOV
You're over thinking it. A Treasury ETF like VBIL, SGOV, USFR or Treasury Money Market like VUSXX are functionally equivalent. Just pick whatever is most convenient for you.
>I’m curious how others evaluate where to keep their emergency fund or idle cash while still balancing safety and liquidity. Thats the issue with banks, HYSA will mostly follow the short term interest rates , however they can vary . If a bank has excess cash they may yield less , if they need cash they may have a promo to yield slightly more . A great HYSA pretty much matching short term rates can become one that lags behind it . So you can chase yield and open new accounts and move money to the highest paying accounts Or you can simply use a money market fund or a ultra short bond ETF like VBIL/SGOV and you are always guaranteed to pretty much get the short term rate Some banks may offer some promotional rate but honestly chasing yields may net you like .1% more then VBIL/SGOV what is like $50 on a 50k emergency fund.
Savings- 6 months emergency in HYSA, rest in money market, buy some TBILLS or CDs and create a ladder.(if you have state tax TBILLs can be a better optiony, as they are not subject to state taxes. You can also just use SGOV or VBIL ETF for TBILLS or buy CDs through your bank.) Retirement- max out ROTH IRA, contribute to 401k and HSA (you can invest excess $$$ HSA after you've hit your cap.) Visit r/bogleheads for tried and true ETF's Personal Brokerage- create a dividend portfolio. I use QQQI and SPYI ETFS currently. It pays for my monthly spending. I also have a little gold just to hedge and put spare change towards BTC. And if i get excited about a up and company company ill bet on that if I have extra cash to toss around. DRIP- Enable reinvestment for your Retirement and savings positions!!! Set it and forget it. Also use DRIP methodology until you get your dividend portfolio where you would like it to be. LIVE BELOW YOUR MEANS and budget EVERYTHING (including tine) ! - No matter what stay humble and live far below your means. Don't pay above 25 percent of your income for rent, keep your grocery budget reasonable. Instead of eating out shitty every week go to one nice restaurant a month etc.. No one knows what tommorow holds. Dont piss away your hard work buy making your day to day bills eat up your whole paycheck. All it takes is a lost job and now you have lost everything.
Short-term bonds are paying 4% right now, and inflation is 3% so they're making a real-dollar yield on their cash. Not a lot, but they're not seeing it depreciate. They'd make over 4% just dropping it in VBIL. [https://investor.vanguard.com/investment-products/etfs/profile/vbil](https://investor.vanguard.com/investment-products/etfs/profile/vbil)
I have the same concern as you and im not sure the solution. Does any broker let you pick fractional limit prices? Does any broker give better execution than Fidelity? One alternative is VBIL, lower volume but higher price so it helps with the spread
My Savings account is a brokerage where I buy something like VBIL and ultra short term treasury ETF I prefer this because an ETF like VBIL will always basically give you the short term rate. Banks HYSA usually return a bit less and can be somewhat inconsistent, for example a HYSA may start off matching the short term rate but if rates rise lag behind it, or if rates drop , drop more and end up in 6 months paying much less then the short term rate Ultra short term treasuries you will always get the short term rate, you cannot say that with a HYSA . The added benefit is the interest is exempt from state taxes
Its fine its exactly the same as VBIL/SGOV
What about them ? Fidelity offers a money market that probably yields around 4% and I think RH probably pays 4% And guess what VBIL pays around 4%
Just buy VBIL/SGOV and you will always get the short term rate and won't need to shop around Sure you may be able to find some CD or HYSA that offers 0.1% more interest for a short period of time
Equivilant to VBIL if youre on vanguard which prioritizes its own offerings
Look at Boglehead investment philosophy. For equity look into VT ETF for all US (60%)and all international (40%) VTI + VXUS if you want to adjust those allocations. VBIL for cash equivalent.
Well retirement is what 20+ years away, here is how risk works Equity Index funds like VOO/VTI , if you buy into them over time and hold for 20 years are low risk in the long term, 20+ years However short term they are risky , they could lose 50% plus in a few months, longer term (20+) if you DCA into them they are a safe bet. Cash or cash equivalents like short term bonds or money market accounts is safe in the short term , risky due to inflation in the long term. Longer term bonds are somewhat more risky than cash and get riskier the longer the term they are but are still less risky vs stocks So you do not have to pick , you can allocate a portion to something like VTI for longer term goals and allocate something to like a money market account or a ETF like VBIL what is effectively a HYSA very safe but long term risky due to inflation
Look at expense ratios for VTI, VXUS, BND, VBIL. These ETFs are basically what you have.
If you need short term money put it in a cash equivalent. SGOV or VBIL.
By the nature that SGOV holds almost all short term Treasury bonds its share price does not change much during a day, but it is not the same minute by minute. SGOV does not pay profit. SGOV distributes dividends from the interest paid by the Treasury bonds it holds. Since the dividends are from Treasury bond interest they are exempt from state and local income tax to the extent that the dividends are strictly from Treasury bonds. This is typically almost all of the dividends, but not 100%. There is a special procedure to claim the state tax exemption for dividends from federal obligations for state tax filing. All of the info you need is not on your broker 1099. It's a minor PITA. [https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html](https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html) Vanguard's VBIL is almost identical to SGOV.
1. No , its price can fluctuate during the day usually by a very small amount but the price can increase or decrease during the day. Looking at the chart it usually fluctuates about 1 cent through out the day 2. The distribution are exempt from state taxes 3. Technically I think VBIL has a slightly lower expense ratio but 2 basis points will be pretty unnoticeable
No $3k minimum, lower expense ratio. VBIL is even better on that front though.
Money that I keep set aside for short term taxes is invested into VBIL. Pays a nice yield and is pretty secure from volatility.
High yield savings, brokerage money market fund, short term bond fund. $8K at 4% for two months will make $53. High yield savings would be easiest. They are currently \~3.5%. If you are ready to start investing aside from this savings a broker can do it all. Fidelity Cash Management account has the best features for personal finance and broker investments. The money parked in the settlement holding is currently yielding \~3.9%. You could buy a short term bond fund like SGOV or VBIL that are currently yielding \~4.2%. If you go the broker route make sure to get ACH transfers set up so you can transfer the money to somewhere you can use it to pay your loan. ACH transfers take several days to set up initially. Fidelity Cash Management will allow you to have paper checks, online bill pay, and a debit card. Those can be used to pay things directly from the settlement fund. Beware that a new Fidelity account will hold initial deposits for something like two weeks before they can be withdrawn. Once the account is started get your funding source (bank, etc.) set up to do push ACH transfers initiated from the funding source. Push ACH transfers do not have a hold time before they can be withdrawn. Fidelity is not unique about this. The others also do it to some extent.
You get $1k in free margin so invest that in VBIL and you’re golden.
SGOV primarily holds Treasury bonds. The fund receives or accrues interest from the bonds. This causes the net asset value share price to increase daily until the ex-dividend date. If you own shares on the day before the ex-div date you get the entire dividend for the preceding month - even if you only owned it on just the one day before the ex-div date. Since the dividend is derived from Treasury bond interest it is exempt from state income tax. To claim the state tax exemption you have to get the year end statement from the fund that shows the percent of dividends from (Treasury bonds) federal obligations. You will have to do a manual calculation of state tax exempt dividends and make an extra entry in tax software to reduce dividend income reported to the state. This info is not on broker's 1099. Here's how to do it: [https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html](https://thefinancebuff.com/state-tax-exempt-treasury-fund-etf.html) If you sell shares In between the ex-div date and two days before next ex-div date you get capital gain from the share price increase and not the dividend on the sold shares. Cap gains are not state tax exempt. They are taxed the same as ordinary income. SGOV current yield is \~4.2%, not 5%. FDIC does not cover SGOV or any other stock or mutual fund. SGOV holds Treasury bonds. That is just as safe, or safer, than FDIC. You might be more comfortable with a Treasury only money market fund. The yield is about the same as short term bond funds, like SGOV and VBIL. MMFs accrue dividend for every day you own them. You get the dividend you accrue even if you don't own them on the day before the ex-div date. MMFs share price is held at exactly $1 all of the time so there are no cap gains or losses from buying or selling shares. You generally need to buy MMFs only at the broker that sponsors them. There may be some exceptions. Ally Invest and eTrade may allow buying Vanguard's VUSXX MMF.
First, I'd drop it in $VBIL immediately, so you can earn something while you figure it out. Second, I'd consider how much you really need in the next few years. Money you won't need within 5ish years should be invested in the market to earn the largest return. Contribute that to your 401k (or Roth 401k, Roth IRA, Trad IRA) depending on your tax situation. With 100k total income filing jointly, you probably will want post-tax contributions unless you plan to retire early quite frugally. Definitely do some research on pre-tax vs. post-tax contributions, since your income is low enough to consider going full Roth 401k, Roth IRA. By contributing your income to retirement and using this cash to cover expenses, you'll be securing some tax benefits later on.
Stick it in $VBIL and then start your careful consideration. If you want it available at any time for a different investment, keep it in $VBIL. If you have 5 years before you will likely use the money, consider a mix of stocks and bonds, like 75% $VBIL + 25% $VT. If rates come crashing down, you will be better off with intermediate duration bonds ($BIV). If inflation remains sticky and difficult, then you'll be better off with $VBIL due to their short duration. If you have over 15 years or more before needing the money, just go 100% $VT.
A brokerage interest on cash doesn't matter you can always buy something like a money market fund or a short term bond fund like VBILL or SGOV what will pay the short term rate. So I really wouldn't get hung up on their interest rates on cash, if you want to get basically the short term interest rate just buy VBIL / SGOV what hold short term treasuries so you will always get basically the short term interest rate Also yes a Roth IRA is a good idea. Pick what ever brokerage you like best
Too many times people think you have to be 100% invested in equities or 100% cash. There is an in-between, and you can choose how aggressive or conservative you want to be. Tons of people say " don't invest in bonds they have horrible returns" Well cash has horrible returns too. It's fine investing in a more conservative way, and bonds can earn their return by keeping you invested or keeping you from panic selling, or waiting on the side lines for years because you are afraid to pull the trigger. Keep it simple, you can do a boglehead type portfolio maybe even do a 4 fund portfolio by adding something like VBILfor extra safety. Something like 35% VTI 15% VXUs 30% BND 20% VBIL Obviously allocate according to your own risk tolerance, high % of bonds (VBIL and BND) will add safety.
For the aggressive, honestly i just put in VOO and MGK (vanguard mega cap etf). The rest is my emergency fund with SGOV and VBIL. Set and forget.
You simply transfer money back into your bank account. You are probably waiting on [settlement](https://www.schwab.com/learn/story/7-things-to-know-about-t1-settlement) before the funds are available to transfer. >I want to liquify my investments by April 2026, so wanted to preplan.. :) https://www.reddit.com/r/investing/wiki/index/gettingstarted/#wiki_i_have_some_money_i_want_to_invest.2C_but_i_need_it_back_within_a_short_period_of_time_.28less_than_a_few_years.29.__how_should_i_invest_it.3F That money should probably just stay in a savings account. Or if you're ok dealing with the brokerage, a fund like VBIL.
SPAXX and FDLXX are both better than HYSA. FDLXX dividends are exempt from state income tax which increases its taxable equivalent yield. SGOV or VBIL short term treasury bond funds are another option currently yielding \~4.22%, with dividends also state tax free. On $12K for six months the dollar difference in income would only be about $40.
VBIL and live on the interest + social security + selling however much you need to cover the rest of your expenses each year (perhaps 5%?).
You could achieve a very similar interest rate using either a high yield savings account or using an investment account and buying into a money market account or a short term bond fund. If you use a bond fund that invest only in treasury bills then you would get the added benefit of that interest being exempt from state income tax (if that applies to you). VBIL is one ETF you could use, SGOV is another. All the big brokers offer money market funds. All these option should give you easy liquidity, and control of the asset while generating interest.
It’s definitely done well long term for decades and easy to follow. You could use something like VBIL or VGIT or even the new VTG for treasuries.
I use it , the benefit is schwab is actually a bank on the banking side . It may sound like a minor difference but I have had trouble in the past trying to do ACH pushes or pulls to a brokerage account never had an issue with a bank Like to pay my mortgage their shit website wouldn't recognize my brokerage routing and account number for automatic payment, I suspect this was a design flaw on their part but I have never had issues linking the schwab checking account to anything because I suspect its an actual bank account As far as cash you just need to buy a money market fund or something like VBIL/SGOV so its a minor annoyance and I really don't care about fractional shares You can buy fractional shares of index funds however, schwab offers S&P500 , a broad market , growth and value and foreign index funds organized as mutual funds with pretty competitive expense ratios , so having $15 left over is inconsequential to me Is it better then fidelity that is subjective but lots of people fractional shares are not a deal breaker .