I've been reading up (years overdue, it seems ![:(]( "Sad")
) on reasonable places to park cash.
I decided to move my cash out of HYSAs into money market funds. I stumbled across this very useful spreadsheet:
viewtopic.php?t=401821&sid=faf6b84082bf ... b50550940b
I live in a high state tax area (Portland, OR) and getting relief from state taxes makes the difference in my yields. State tax bracket is 9.9% + an additional 1% county tax.
Schwab is my primary brokerage account, and I initially decided to go for SNSXX, as the spreadsheet suggested post-tax 3.03% returns. (I could even consider a SUTXX holding with 3.12% return, as I've read you don't need to keep the minimum deposit to maintain the holding).
These #s are presuming 100% state tax free returns.
Later, I read through the same spreadsheet that Vanguard money market funds mostly best these, through much lower expense ratios. VUSXX might offer 3.21% returns.
However, I learned that VUSXX isn't 100% state tax exempt, and it may be more like 80%. That would drop yields to ~3.11%.
Other possibilities that popped up are SGOV and Gabelli.
Can someone help me make sense of these options? Why is there such variability in how state-tax protected these options are?
) on reasonable places to park cash.I decided to move my cash out of HYSAs into money market funds. I stumbled across this very useful spreadsheet:
viewtopic.php?t=401821&sid=faf6b84082bf ... b50550940b
I live in a high state tax area (Portland, OR) and getting relief from state taxes makes the difference in my yields. State tax bracket is 9.9% + an additional 1% county tax.
Schwab is my primary brokerage account, and I initially decided to go for SNSXX, as the spreadsheet suggested post-tax 3.03% returns. (I could even consider a SUTXX holding with 3.12% return, as I've read you don't need to keep the minimum deposit to maintain the holding).
These #s are presuming 100% state tax free returns.
Later, I read through the same spreadsheet that Vanguard money market funds mostly best these, through much lower expense ratios. VUSXX might offer 3.21% returns.
However, I learned that VUSXX isn't 100% state tax exempt, and it may be more like 80%. That would drop yields to ~3.11%.
Other possibilities that popped up are SGOV and Gabelli.
Can someone help me make sense of these options? Why is there such variability in how state-tax protected these options are?
Statistics: Posted by schvanfid — Wed Aug 28, 2024 10:28 am — Replies 0 — Views 24