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Registered
Join Date: Apr 2001
Location: Linn County, Oregon
Posts: 48,928
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Quote:
Originally posted by turbo6bar
Hugh R, you might consider diversifying into US Treasury bills. With the current inverted yield curve, the 28-day has the highest yield at 5.22%. However, an inverted yield curve portends a slowing econony and/or recession. In this case, slightly longer terms may be advisable. The 2-yr note is about 0.1% less.
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I agree. Also, Hugh, you are in California, right? When comparing rate of return on cash securities, also remember that treasury issue interest is NOT subject to state income tax. Depending on your tax bracket, treasuries can actually put more in your pocket after factoring in the tax reduction. You needn't pay brokerage fees buy treasuries. You can open your own account with the federal reserve bank.
www.treasurydirect.gov
Or...what we did lately... Vanguard offers a treasury money market account. It has check writing priviledges and the fees are laughably low.
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