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what makes this better than a money market mutual fund?
You do not have to pay state taxes on T Bills for one. More likely a higher rate on T Bills vs a money market mutual fund. And also safer than a money market mutual fund.
what makes this better than a money market mutual fund?
Our Money Market pays .3% annually. It's an old one and we don't keep much money in it.
Our CD, bought last year, pays 4.15% and the money will not be available until January.
4 Week T Bills pay 5.3% annually. The money comes available every 4 weeks.
Used to be, it didn't make much difference. Interest rates were about zero, anyway. Now, it's getting kind of important.
Schwab MM (SWVXX) is paying 5.239% right now and has been over 5% for quite a while. I don't see any reason to hold T-Bills in a tax-deferred account when a MM is paying the same or very close to the same.
Schwab MM (SWVXX) is paying 5.239% right now and has been over 5% for quite a while. I don't see any reason to hold T-Bills in a tax-deferred account when a MM is paying the same or very close to the same.
Not very close because you also have a .35% expense ratio. The same and close to the same can be thousands of dollars over a one-year period.
Not very close because you also have a .35% expense ratio. The same and close to the same can be thousands of dollars over a one-year period.
I'm seeing a performance very close to the same with SWVXX the winner by a whisker after fees. The 12 month growth through today of a $10,000 investment in each is;
SWVXX $10,463 and
USTREAS T-Bill Auction Ave 3 Mon $10,459.
I'm seeing a performance very close to the same with SWVXX the winner by a whisker after fees. The 12 month growth through today of a $10,000 investment in each is;
SWVXX $10,463 and
USTREAS T-Bill Auction Ave 3 Mon $10,459.
I currently earn $334 on $25K per 3-month cycle, or $1336 annually.
This would be $535 for a $10K T bill.
I currently ladder a $25K 3-month T bill for a weekly income of $332 to $337.
How it really works is I pay $24662 for a $25000 return in 3 months.
Brokerage Update Disclosure info_outline
Date Order Type Order type Quantity Symbol Price type Term Price Bid Ask Last price Status Links
10/06/23 834 Bond Buy 25,000 912797GC5 Subject Day 100.00 0.00 0.00 98.57 Open Cancel Request
This is my weekly auction order submitted today, the last price will change by auction close to approx 98.63.
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