With that large of a EF, it makes sense to optimize a bit more, even if you want to keep risk that low. That HYSA is lower than T-Bills and is going to drop in advance of rates. On top of that, if you have a state income tax, the HYSA is taxed and the T-Bills are not. It's also easy to buy T-Bills in a taxable brokerage account.
36 months is a long time, so you could certainly buy a mix of T-Bills and notes, but I'd personally keep it in T-Bills (on the logic that I'd rather get 4.4 in six months and under T-Bills than lock in 4.0-4.1 for 2-3 year notes). For example, you could buy a six-month EF chunk in T-Bills for each of the next six months. When one matures, buy six months out, and repeat. One nice part of this is that you're throwing off a little bit of cash each month, and that may be a way to ease slowly into equities with a broker that does dollar-amount trades of partial shares.
36 months is a long time, so you could certainly buy a mix of T-Bills and notes, but I'd personally keep it in T-Bills (on the logic that I'd rather get 4.4 in six months and under T-Bills than lock in 4.0-4.1 for 2-3 year notes). For example, you could buy a six-month EF chunk in T-Bills for each of the next six months. When one matures, buy six months out, and repeat. One nice part of this is that you're throwing off a little bit of cash each month, and that may be a way to ease slowly into equities with a broker that does dollar-amount trades of partial shares.
Statistics: Posted by jtk — Mon Dec 09, 2024 7:52 am — Replies 53 — Views 3660