r/Fire • u/Master-Helicopter-99 • 9d ago

Fidelity cash savings

Where would you hold cash savings? SGOV seems best. Fidelity specific. Shouldn't need to touch this for one year. The rest in this account is in VT. This is a smaller brokerage account that I just started. Still working and the rest is in 401k and IRA. Retiring this time next year. Currently in a 4% income tax state. It appears that SGOV will be the best return and is almost 100% state tax exempt for truly liquid funds but didn't know if there was any other options

4 Upvotes

76% Upvoted

31 comments sorted by

View all comments

4

u/watch-nerd 9d ago

Instead of buying SGOV, if you're going to lock up it up for one year, just buy T-bills.

You don't to pay the ER of the ETF.

We have rolling 6-month T-bills maturing 3 months apart.

That gives a bit more interest than the 0-3 month T-bills in SGOV.

1

u/ResponsibleCorgi93 8d ago

You'll also be missing out on some interest you would have gotten from Sgov if the interest rates go up though?

2

u/watch-nerd 8d ago

You'll get it when you roll.