Why is this is better than an ETF treasury fund, CDs, and high-interest savings accounts?
Answer: Treasury Bills "interest" is state & local tax-free on the money earned. So if you're in a high-income tax state and city they're worth it.ETF fund aren't always 100% in treasuries and charge fees.
Question (asked a dozen or more times in the thread) : How does bill interest work?
Answer: Treasury Bills "interest" is the difference between face value and purchase price. You buy a $10k bill at less than $10k, upon maturity, it is worth $10k. The difference between purchase price and maturity value is your "interest."
Tax Equivalent Yield Calculator For Savings Bonds, Treasury Bills, and Tax-Exempt Money Market Funds
https://www.mymoneyblog
How Buy and Sell Treasury Bills
https://thefinancebuff.com/treasury-bills-cd-money-market.html
When are the auctions? When can I place an order?
4, 8, 13, 17, and 26 week bills are auctioned every week.
52 week bills are auctioned every four weeks.
You can see recent results and the planned schedule at: https://www.treasurydir
4 and 8 week bills are usually announced on Tuesday, auctioned on Thursday, and settle on Tuesday.
17 and week bills are usually announced on Tuesday, auctioned on Wednesday, and settle on Tuesday.
13 and 26 week bills are usually announced on Thursday, auctioned on Monday, and settle on Thursday.
52 week bills are usually announced every 4th Thursday, auctioned on Tuesday, and settle on Thursday.
At a brokerage, you can usually can place an order between the announcement and auction.
At TreasuryDirect, you can place an order up to about 8 weeks in advance.
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Treasury BILLS are currently paying over 5% for various maturity lengths under 1 year. These can be bought through most brokerages even without a TreasuryDirect account.
Treasury BONDS are paying 4% or less and have 20 or 30 year terms.
The 4 week bill ordering opens tomorrow 8/8, the deadline to buy it is sometime Thursday 8/10 morning depending on where you are buying it and it settles on 8/15.
On TD Ameritrade, they take your money on the 10th (take it out of the money you can trade with when you hit purchase which can be as early as the 8th) and buy the bill on the 15th during time which you earn no interest. Thus the reason that I stopped buying 4 and 8 week bills at auction. Secondary markets settle the next day so often a better deal. Treasury direct does not take the money from your bank account till the day it settles and Vanguard keeps it in the settlement fund earning interest till the day it settles as well. Not sure about the other brokerage houses. Also, not sure if you rollover the t-bills how the time between redemption and the next auction works as far as any interest you are losing as that is often a week of interest as well.
FYI, if you do the math, 4 weeks for $10,000 usually gets you about $40 in interest for letting them hold your money for 5 weeks.
The Monday auctions for 3 months and six months settle on Thursday so much less time to hold your money for nothing and less redemption downtime.
The money market funds often have repurchase agreements that are taxed at the state and local level but obviously more liquid. Am looking into the ETFs now.
Good luck to everyone!
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2023 - 4.35%
2022 - 3.94%
2021 - 3.94%
2023 - 4.35%
2022 - 3.94%
2021 - 3.94%
You bought what? Those looks like iBond rates possibly?
Treasury Bond rates I am seeing on Fidelity today (2024-04-16):
3Mon - 5.39%
6Mon - 5.36%
9Mon - 5.28%
1Year - 5.23%
My state taxes CDs so for me US Treasury bonds are the way to go for funds I would need back in those time frames.
I also have been putting away some money in Government Bonds which are longer term 10-40 years but can generate 6% or more. Only downside here is that they are callable so if/when the rates collapse the Government might simply pay off the bond....Again these are note state taxed so that helps!
Shahhere
I Bond dilemma: Buy in April, in May, or not at all?
https://tipswatch.com/2024/04/14/...ot-at-all/
Assuming Titan is mostly US treasuries that avoids income tax on. Too many options.. I just need to know where to put my money and make the most post tax…? I'm assuming it's US treasuries to be safe… but is there an ETF that just handles this
2023 - 4.35%
2022 - 3.94%
2021 - 3.94%
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Treasury Bond rates I am seeing on Fidelity today (2024-04-16):
3Mon - 5.39%
6Mon - 5.36%
9Mon - 5.28%
1Year - 5.23%
My state taxes CDs so for me US Treasury bonds are the way to go for funds I would need back in those time frames.
I also have been putting away some money in Government Bonds which are longer term 10-40 years but can generate 6% or more. Only downside here is that they are callable so if/when the rates collapse the Government might simply pay off the bond....Again these are note state taxed so that helps!
Shahhere
But money was sitting in my old bucket/account which I had opened in 2021, 2022 etc.
The interest rate for that was not 5 something %, it was 3.94%.
They don't make it easy to see that interest rate.
Assuming Titan is mostly US treasuries that avoids income tax on. Too many options.. I just need to know where to put my money and make the most post tax…? I'm assuming it's US treasuries to be safe… but is there an ETF that just handles this
With inverted yield curves, 1 month treasury bill currently has the highest return post tax. Other funds will charge management fee, which will reduce return. The main advantage of a money market fun is instant liquidity.
https://fundresearch.fi
With inverted yield curves, 1 month treasury bill currently has the highest return post tax. Other funds will charge management fee, which will reduce return. The main advantage of a money market fun is instant liquidity.
https://fundresearch.fi
Or its better to just get SGOV?
Or its better to just get SGOV?
SGOV shows
Cash and/or Derivatives 100.00
Treasuries 0.00
The iShares 0-3 Month Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities less than or equal to three months. When you sell an ETF, you need to wait two trading days before the $ is available to cash out. The interest is reported on 1099 DIV, and it's up to you to recalculate the portion that is state tax exempt.
https://www.ishares.com/us/produc...f#hold
Would ca state tax around 10%
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Would ca state tax around 10%
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