Savings/investments/bonds Master Thread.

[MiInvstr]

doesn't the fact that it's newer make it not as established as the S&P?

They’re both tracking the same index and offering extremely similar diversification benefits. There’s no reason to take the age of the funds into account when choosing which one to go with.

[MoYS]

They’re both tracking the same index and offering extremely similar diversification benefits. There’s no reason to take the age of the funds into account when choosing which one to go with.

Just to explain for the OP. This is because they are both passively managed based on the same index and weighted in the same way, therfore the holdings should be almost exactly the same. The track record will then only show the history of the holdings, not the fund managers preformance, and because they have the same holdings their histories would be identical regardless of how old they are. If an etf or mutual fund would be actively managed the holdings then would be up to the fund manager to choose, they would then defer from one etf or fund to another. And because actively managed funds have higher turnover rates, the history would only show the preformance of the fund managers, not the holdings. Important to note that it's debatable if track records of actively managed portfolios relate to future returns, and many professionals (which I am not) encourage investing in passively managed funds over actively managed due to better preformance over the long run, lower fees and less tax liability.

[AsherO]

and many professionals (which I am not) encourage investing in passively managed funds over actively managed due to better preformance over the long run, lower fees and less tax liability.

If the underlying holdings are the same, how would the tax liability differ?

ETA: I googled and found this interesting tidbit:

And because of the way they trade, ETFs may have an additional tax benefit.

When you sell shares of an ETF, you're selling to another buyer as opposed to the fund company. This means the fund itself usually isn't involved in the transaction and doesn't have to sell any securities, potentially triggering capital gains.

[MoYS]

If the underlying holdings are the same, how would the tax liability differ?

As far as I understand, it would not.
But a actively managed fund usually will have a much higher turnover rate, meaning the buying and selling of holdings in the protflolio as they adjust to the managers intention, the taxes of those sales could be passed on to the investor. This would not be on the sale if the etf or fund, rather while the investor is holding the fund.
Even passively managed index funds can have higher turnover rates, depending on how they are weighted. But on average I believe actively managed funds have a much higher turnover rate.

[Definitions2]

I just realized the 2023 limit for ira is 6500. I only put in 6000. I also read that if I put in before April it's ok and can be counted towards 2023. Anything I have to be aware of?

I also have .52 cents in Bank Sweep under cash and cash investments whatever that means. Can I put that into my IRA or will that push it over the allowed contributions?

Lastly it's currently invested in SWYNX. Is that a good choice?

[Yo ssi]

I just realized the 2023 limit for ira is 6500. I only put in 6000. I also read that if I put in before April it's ok and can be counted towards 2023. Anything I have to be aware of?

Nope.

[Yo ssi]

My miscalculation. T-Bills have federal taxes.

[ExGingi]

My miscalculation. T-Bills have federal taxes.

FL (and a handful of other states) residents have not tax advantage in treasuries.

[Yo ssi]

FL (and a handful of other states) residents have not tax advantage in treasuries.

Yup. It's also about how to calculate the difference in apy to see if it's worth it for any state.

[4yourinfo]

Yup. It's also about how to calculate the difference in apy to see if it's worth it for any state.

And that you are basically receiving all the interest up front which you can also reinvest..

[4yourinfo]

And that you are basically receiving all the interest up front which you can also reinvest..

PSA - anyone with E trade (Which btw I don't recommend for t bills due to no rollover option and funds take an extra day to b available) your T bill income is going to come on an amended 1099 coming out the 27th as per etrade chat "Thank you for your patience! This issue has been reported. We will be reissuing corrected forms inclusive of the missing Treasury bills on or about February 27th. I sincerely apologize for the inconvenience."

[Shmelly]

I've read as much as I can about t-bills in this thread, and see a few times where people referenced that somewhere upthread it was explained clearly, but I cant find this referenced clear write-up. I understand the basic concepts but am looking to learn more about the strategies involved. Can someone point me in the right direction please?

[Spoon]

I've read as much as I can about t-bills in this thread, and see a few times where people referenced that somewhere upthread it was explained clearly, but I cant find this referenced clear write-up. I understand the basic concepts but am looking to learn more about the strategies involved. Can someone point me in the right direction please?

https://thefinancebuff.com/treasury-bills-cd-money-market.html

[Yo ssi]

And that you are basically receiving all the interest up front which you can also reinvest..

Many accounts do that monthly (essentially the point of the APY), so that would be better then a longer T-Bill which which is only compounding 8 or 17 weeks etc. all part of the calculations to make.

[4yourinfo]

Many accounts do that monthly (essentially the point of the APY), so that would be better then a longer T-Bill which which is only compounding 8 or 17 weeks etc. all part of the calculations to make.

Not following - my point is if you look at an APR of a cd vs. an APR of a tbill even if they are equal, the APY of a T bill can be more because by a cd you have to wait monthly to slowly get the interest and only the interest that you received gets compounded while a t bill you got all the interest up front you can invest all that interest right away in another investment etc. Am I wrong?

[Redbull3]

I just realized the 2023 limit for ira is 6500. I only put in 6000. I also read that if I put in before April it's ok and can be counted towards 2023. Anything I have to be aware of?

Where's your IRA. you may want to/have to indicate that it's a 2023 contribution and not a 2024 contribution at the time you make the deposit. I'm not 100% sure. But i'm looking to do something similar for a sep ira that i may wanna open and contribute to for 2023 before 4/15.

[Yo ssi]

Where's your IRA. you may want to/have to indicate that it's a 2023 contribution and not a 2024 contribution at the time you make the deposit. I'm not 100% sure. But i'm looking to do something similar for a sep ira that i may wanna open and contribute to for 2023 before 4/15.

Usually it's pretty clear upon deposit which year it's going to.

[Definitions2]

Where's your IRA. you may want to/have to indicate that it's a 2023 contribution and not a 2024 contribution at the time you make the deposit. I'm not 100% sure. But i'm looking to do something similar for a sep ira that i may wanna open and contribute to for 2023 before 4/15.

Charles Schwab. IINM it asked me before which year I wanted it to go towards.

[Yo ssi]

Charles Schwab. IINM it asked me before which year I wanted it to go towards.

Yup, it's the same as putting it during the year AFAIK

[Miracle]

What banks are giving high APYs? I have money in Ally, they were giving 4.5% but now it's gone down to 4.35 and I can see it getting lower.

Alternatively, if I have about $30k in savings, is there a better place to let the money sit? please advise without using so many abbreviations..  I am not holding in investments. thank you.