OT: Investing in T-Bills

[Louis]

Originally Posted by pinkshogun

a friend who didnt like Vanguards customer service.

I haven't had any issues with Vanguard, but from my perspective one advantage Schwab and Fidelity have over them is that they have local offices with real humans near me.

Over the phone Vanguard has been fine.

[Ralph]

Originally Posted by MikeD

I don't think that's the case from what I could find. The only funds that are state tax free when held in a taxable account are muni bond funds comprised of bonds from the state you live in.

Edit: you're right to an extent: https://www.sfchronicle.com/californ...s-17839464.php. I live in California.

I thought it might be partially state tax exempt for just the interest that comes from bills, notes, and bonds.

BTW....I have no complaints with Vanguard customer service, although it's been a while since I called the 800 number. But do go to their site almost every day.

[pinkshogun]

Fidelity has an office about 10 miles away. Plus, my friends adviser helped me over the phone set up my account and when I went to the local branch to hand over my milk money (no bank transfers yet) they helped with putting their app. on my phone.

[MikeD]

Originally Posted by pinkshogun

Fidelity has an office about 10 miles away. Plus, my friends adviser helped me over the phone set up my account and when I went to the local branch to hand over my milk money (no bank transfers yet) they helped with putting their app. on my phone.

I've met with my Fidelity rep in person, over Zoom, and by telephone seems like every 6 months. I don't have a separate financial advisor and rely on my Fidelity rep for that.

[alancw3]

just got 5.32% on six month bills in yesterdays fed auction. Unfortunately this will probably be last time at such high rate as emphasis on lowering rates there times during the rest of 2024. Probably first rate increase will be at June FOMC meeting. Oh well it sure was nice while it lasted!

[ridethecliche]

Originally Posted by pinkshogun

I opened up a Fidelity account on the advice of a friend who didnt like Vanguards customer service. That being said, Fidelity's entry level money market account, SPAXX, is right at 5%

And I believe that any money in the investing account is automatically in SPAXX if it's not invested in specific funds. I basically put my savings in there and use it like a savings account since it actually accrues real interest.

[pinkshogun]

You are right about SPAXX (money market) and I do the same. Its paying 4.97 and going down slowly

[MikeD]

FDLXX (Treasury only MM fund; currently 4.94%) would be a better choice if living in CA, NY, or CT, as interest/dividends would be state tax free. SPAXX wouldn't. See the article I referenced above.

[reuben]

With rates likely to start dropping, albeit slowly, I've started to pick up some longer notes, and will buy some 2 year notes at the upcoming auction. I still have a variety of 6 month and one year bills, which periodically age off and are reinvested.

[redir]

Laddering seems to make a lot of sense when investing in T-Bills. I do the same with Navy Federal certificates.

https://fastercapital.com/content/T-...ll-Ladder.html

[verticaldoug]

I tend to think as an individual investor there is really not much value in spending too much time thinking about laddering. This is your cash equivalent and the least risky thing you will own. The marginal gain is just that really marginal.

I think you are better off thinking about your overall asset allocation, taxable, your investment horizon and opportunity cost. In general, people always seem to have too much risk or too little risk. Worry about being comfortable with the risk, and let the market take care of the rest. In the long run, the market is always right, and the rest of us not so much.

And avoid the Broker's Soup du Jour. (aka the CNBC special, it always causes stomach cramping.)
https://news.yahoo.com/cnbc-became-f...104500082.html

[ridethecliche]

Originally Posted by pinkshogun

You are right about SPAXX (money market) and I do the same. Its paying 4.97 and going down slowly

I'm pretty early in my 'earning' career and was going to buy a bunch of VTI after getting a decent return % day/swing trading but really not wanting to deal with it any longer. Then it all took off and I'm just kinda sitting on my thumbs debating if I should bother with the dollar cost averaging now or wait for things to cool again.

Thankfully my main accounts are full auto and I don't even look at them haha.

[pinkshogun]

Next week I celebrate my 3rd month being in the market. Between Youtube and a couple friends who have been in for decades, I've learned what to do (buy low cost index funds) and what not to do (buy individual stock, market timing). The hardest lesson as Doug mentioned is to relax, be patient and just let the market cook and do its thing

[ridethecliche]

Originally Posted by pinkshogun

Next week I celebrate my 3rd month being in the market. Between Youtube and a couple friends who have been in for decades, I've learned what to do (buy low cost index funds) and what not to do (buy individual stock, market timing). The hardest lesson as Doug mentioned is to relax, be patient and just let the market cook and do its thing

No offense, but if it’s your third month in the market you haven’t really seen anything stressful yet.

[pinkshogun]

Some daily stresses here and there but nothing what my friends have been through.