T bills, I bond, or else
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Anonymous
| Sitting on too much cash earning less than 4%. Any recommendations? I am thinking buying T bills and I bond. Thoughts on those? No stocks. Most of my assets are in the market already. |
Anonymous
|
Put it in a Vanguard money market fund yielding >4%
https://investor.vanguard.com/investment-products/money-markets |
Anonymous
| Open Bank is 4.75% |
Anonymous
This is a good idea. TIPS might be a good idea if you want inflation protection (esp with the possibility of Trump tariffs) but they can spin off “phantom” income— ibonds are simpler and tax deferred so I’d throw 10k at those if you have a bu ch to invest. |
Anonymous
| I use Ibonds but they are currently yielding 3.11% |
Anonymous
| T bills have tax advantages that the vanguard money market does not. |
Anonymous
Not if you use Vanguard’s federal money market, which is the first one listed on that page |
Anonymous
| What a dumb question. Go get a financial planner so you don't make stupid mistakes and ask stupid questions. |
Anonymous
| Ummm, what do you think this forum is for, if not to discuss possible financial choices? |
Anonymous
| They’re easy and you can cash out whenever you might need the funds for something else. I usually put $10K/yr in i-bonds and have various 4-week thru 1-year t-bills. |
Anonymous
A dumb question? How so? You sound super smart. What mistakes should I watch out for?? |
Anonymous
I would disregard that one. Probably drunk. |
Anonymous
|
I have been buying T-bills and CDs through my online broker since early 2023. Right now you get about 4.3% for 3-4 year T-Bills and state tax free. That seems to be the sweet spot. But, I have gotten as high 5% on a 2 yr CD last year.
I turn 60 this year, so looking to lock up some income, even though still working. May not be for everyone, especially if younger. |