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T-bill interest is only subject to federal income tax not state or city. Way better than cd in high income states.
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Howās this for insurance
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Understandable. Different strokes for different folks.
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And that makes a huge difference.
It shouldnāt be though. An interest rate of 5.4% after states/local taxes (9.3% marginal state tax rate in my case) translates to 3.52% after tax. My betterment gives me 4.75% which after tax is 3.10%.
T-bills with 4-weeks has a 5.42% 7-day yield which translates to 4.12% after taxes yearly yield (assuming 24% marginal federal tax rate).
Also and this is very important: When the banks market a 5.4% APY, it is an annual rate which translates to 5.27% 7-day yield. When Treasuries say their 7-day yield is 5.42%, it translates to 6.35% tax equivalent compounded APY.
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Still - different strokes for different folks.
Your 9.3% state tax rate is not applicable to most. The complexity of another institution, and quite possibly one that will not autoroll your Ts at maturity, is another layer as well. Access of funds and settlement is another. There is no one size fits all.
Jumping through hoops to seize a fraction of a percent on a bit of cash isnāt for me but I respect those who chase it.
Sure, I realize Iām leaving a bit on the table with a HYSA (especially with state tax) but I just transferred funds for a vehicle from Marcus and it was in my checking account within 16hrs. Try that with invested assets at a brokerage.
I donāt think your assumptions are correct.
If liquidity is your issue then 16 hrs is too much time since you can use something like Fidelity directly as a checking account. You can hold FDLXX in fidelity and it would auto-liquidate to satisfy any payments.
You are referring people every 3 months and jumping through hoops only to lose money. You can easily auto-roll and build a 4-week T-bills ladder and not worry about searching people to refer. Even if for some reason you need immediate liquidity you can buy Treasury Only Money Market Funds that liquidate like a checking account and still gives much better yield than the 4.4% your Marcus HYSA offers or even the 5.4%.
Ofcourse. It is marginal not the effective tax rate. Everyone should do their own calculations.
Just arguing whatās out there and stating the pros and cons of each approach.
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Interesting read, maybe holding more TIPS is the optimal portfolio.
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I agree with this but Japan also doesnt spend close to what we do on social programs, military, etc etc. Japan also has a tech industry as well as manufacturing base, higher employement numbers and an aging population that isnāt being replaced. So they have a lot of issues coming as well. But weāre looking at a much worse outcome I think.
I think the market stays sideways to down for years. Iām only investing in high dividend large caps for my retirement and my cash is in t-bills right now.
Still love silver, platinum and palladium at these levels too so I do buy pms as well. Havenāt been buying much gold as itās at an all time high but likely will go higher. AI is going to increase demand for metals in the future as many components use them.
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literally playing musical chairs with random banks atm
Now up to a whopping 5.50% (w/ promotional 0.5% addition for 3 months) APY. Iāve had zero issues with Wealthfront and the app/website work well. Send a DM if youād like a referral link. 
Might be good for some people to swap out existing 0% fixed rate I bonds or just buy more.
Per the Treasury Direct Website today 10/31
Series I Savings Bonds
5.27%
This includes a fixed rate of 1.30%
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What are the best interest rates people are seeing for 3 / 6 / 9 & 12 months? I would base this on a $100k min investment.
Alliant Credit Union is offering Certificates as follows;
3-5mos = 4.5% APR
6-11mos = 4.75% APR
12-17mos = 5.3% APR
18-23mos = 5.35% APR
Iām looking at the 5.3% for a 12mo investment but just wondering if anyone if seeing anything much better out there.
Are you checking inside the brokered cd / fixed income area of your brokerage. May be able to squeeze out another 10 - 15 basis points.
A few credit unions may be worth checking into as well. A few are a little higher at a quick glance.
Fidelity lets you build custom ladders and rates are pretty similar. Better short term - little lower longer terms
Little off-topic on the money side, but what reputable banks have the best high-interest checking/savings accounts? I am thinking of canceling some of my insurance policies (i.e. pet insurance) and just putting my normal premiums in that account and drawing from it if I need to. Amex has been advertising 4.35%, which seems decent since they are a well-known institution.
