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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Robert O who wrote (76575)	2/8/2023 6:27:08 PM
From: Lee Lichterman III	5 Recommendations Recommended By ajtj99 catou1 Mevis skier31 towerdog Read Replies (1) \| Respond to of 97962

I think I got 4.57+% on the last 4 week bills I bought and you can get about that all the way out to 6 months. Once yields start to uninvert, then you can decide if you want to lock in a fund, CD or if you don't need the money, buy longer dated notes/bonds. You can setup a Treasury direct account pretty quick. It literally takes seconds to link bank/broker accounts to fund it and there's zero cost for buying. Money just comes out of the account you want and you can even have it go into the same or a different linked account at maturity. You can name beneficiaries just in case etc. Most brokers charge for buying bonds/bills/notes and mutual funds and the like have management fees, lower rates and aren't guaranteed.

To: Robert O who wrote (76575)	2/8/2023 6:46:20 PM
From: Sun Tzu	2 Recommendations Recommended By ajtj99 Mevis Read Replies (2) \| Respond to of 97962

Funny, yesterday I was having the same conversation with my bank and they sort of had the same response, although they'd be happy to sell me the funds they like per advisor's suggestions. I am probably going to do the same thing you are planning to do. However, the answer is not as simple as one may presume. Firstly, there is the issue of how quickly you want to be able to withdraw the funds. Treasury funds have a next day availability. So it is not exactly the same as cash in the bank, though for most people the next day is good enough. Then there is the issue of duration risk. Both to limit the duration risk and get the higher returns, short term (i.e. 3 years and less) is the best option for now. If you want it there longer, and don't want to watch the market for changes in monetary policy and conditions, then it may be different for you. Beyond this, you will be dealing with credit risk and other issues. In the past I mostly used mortgage backed securities b/c it has higher yields and is the last thing people would default on. But now that may not be such a good idea, especially if you believe the economy is going to tank for an extended period of time (personally I don't see the doomsday on the horizon, but what do I know). After this you can get into things like LQD and JNK - neither of which I like at the moment. EMB however would be a good choice in the 70s - depending on your risk tolerance. My point is that there are many variables. Nothing is quite like cash. So without setting parameters around how fast you may want it back or how much risk and what kinds of risk you are willing to accept, the bank cannot answer you. One last option is depositing it with SOFI. They pay pretty good interest and they are now a bank. Overall, I'd go with short term treasuries.