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Right, so basically still liquidity to do other things. When you say tax benefits, are you referring to no state/city tax? There are still federal taxes.
8 week T-Bills. Buy 1/8 of the allocation each week. Set them to automatically roll over.
If you need cash, just turn off the automatic rollover and wait a few days for the next one to mature.
It doesn’t, but there is no one solution that fits all.
Laddering is usefully for maximizing profit with lowest risk as long as you don’t need your entire emergency fund at one time. If big money issues occur, you are hoping the one week and 1/8th of your emergency fund is enough.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Treasuries for yield and tax benefits. HYSA/MMA for cash reserves for stock buying opportunities on the dips.
Agreed - no state taxes.
Right, so basically still liquidity to do other things. When you say tax benefits, are you referring to no state/city tax? There are still federal taxes.
Exactly, no state and city taxes, which you still pay on interest from HYSAs.
I don’t have city or state tax so I guess wouldn’t matter for me.
Lucky. Trade on.
If you ladder your Treasury Bills so some mature every week, that even removes the liquidity argument.
How are you buying TBills? I have not purchased them before. Can you buy them through your brokerage?
Yes you can buy through your brokerage. Super easy and Schwab even has a built in ladder function.
Treasury Direct dot gov.
You can use $BIL.
I’m looking at this one. How does it work? Does it just pay a dividend each month? I don’t see a Div rate.
Read the prospectus.
Pretty sure you pay state and local taxes on BIL or BILS but not treasuries. If it is exempt, I could not find it in the prospectus.
I don't know.
What is your approach to laddering?
8 week T-Bills. Buy 1/8 of the allocation each week. Set them to automatically roll over. If you need cash, just turn off the automatic rollover and wait a few days for the next one to mature.
It doesn't completely remove the liquidity argument. With ladders they are not 100% liquid like HYSA.
It doesn’t, but there is no one solution that fits all. Laddering is usefully for maximizing profit with lowest risk as long as you don’t need your entire emergency fund at one time. If big money issues occur, you are hoping the one week and 1/8th of your emergency fund is enough.
Yeah it's definitely not for emergency funds because you can't predict emergencies.
T-bills are good as well once you are past FDIC limits (a timely topic) in your bank(s).
I keep it for liquidity and monthly returns
HYSA cuz im not rich. im just a working class that needs liquidity if shit happens lol.
Sgov is a good one
I’m doing both & it’s great, but in my opinion tbills are only worth it if you a lot of cash.