Savings/investments/bonds Master Thread.

[ExGingi]

so you'd put all
SWYXX, VYFXX, SPAXX, FSNXX
in the same boat, just based on platform?

No. All of the above are free of Federal and NY State taxes except for SPAXX which is taxable.

[Yo ssi]

I like Charles Schwab. Easy to navigate and has amazing customer service. Look online for a sign up bonus.

Requires hard pull?

[ejb123]

According to bogleheads vyfxx is completely tax free for ny residents.

These are still better options then anything above besides for t bills which are less liquid.

Don’t know why anyone would prefer a savings account over these. Tax implications should not be ignored IMO.

Isn't the Muni Fund subject to daily fluctuations in price? - For examples if rates move, the value of the fund will change (up or down) versus if you are buying short term T Bonds as long you need to sell, you know what your yield will be at maturity.

[CountValentine]

Isn't the Muni Fund subject to daily fluctuations in price? - For examples if rates move, the value of the fund will change (up or down) versus if you are buying short term T Bonds as long you need to sell, you know what your yield will be at maturity.

Yes

[sam2015]

Requires hard pull?

Although it seems that it used to. That does not seem to be the case anymore. A quick google search will pull up multiple sources.

[CountValentine]

Although it seems that it used to. That does not seem to be the case anymore. A quick google search will pull up multiple sources.

https://www.doctorofcredit.com/schwab-brokerage-removes-hard-pulls-for-new-checking-brokerage-customers/

[CountValentine]

Since @sam2015 you have sold T-bills a quick question. Does it just report interest, capital gains/loss or both?

[gozalim]

Question: (not sure if this goes here, or in the "Accountant" thread)

When holding T-Bills and/or Muni MM funds in brokerage accounts, come Tax Time, If I download the data directly into TurboTax, will it have it correctly listed? or would I still need to manually update the tax status?

[CountValentine]

Question: (not sure if this goes here, or in the "Accountant" thread)

When holding T-Bills and/or Muni MM funds in brokerage accounts, come Tax Time, If I download the data directly into TurboTax, will it have it correctly listed? or would I still need to manually update the tax status?

TT correctly loaded T-bills from Fidelity. No state/local tax.

[gozalim]

TT correctly loaded T-bills from Fidelity. No state/local tax.

Thanks
curious to hear experiences from Schwab as well (though I'd assume that they all have it set up properly)

I suppose this quote refers to manually entering, or abundance of caution:
https://www.doctorofcredit.com/savings-taxes-on-earnings-from-high-yield-savings-accounts/#:~:text=Finally%2C%20as%20noted%20above%2C%C2%A0these%20tax%20savings%20don%E2%80%99t%20get%20computed%20automatically.%20Be%20sure%20your%20accountant%20calculates%20the%20savings.%20If%20you%E2%80%99re%20using%20a%20tax%20software%2C%20be%20sure%20to%20input%20the%20savings.

[CountValentine]

I suppose this quote refers to manually entering, or abundance of caution:
https://www.doctorofcredit.com/savings-taxes-on-earnings-from-high-yield-savings-accounts/#:~:text=Finally%2C%20as%20noted%20above%2C%C2%A0these%20tax%20savings%20don%E2%80%99t%20get%20computed%20automatically.%20Be%20sure%20your%20accountant%20calculates%20the%20savings.%20If%20you%E2%80%99re%20using%20a%20tax%20software%2C%20be%20sure%20to%20input%20the%20savings.

This could be correct as it is under municipal bonds. I did not have any of those.

[sam2015]

Since @sam2015 you have sold T-bills a quick question. Does it just report interest, capital gains/loss or both?

Good question. Checking my 1099 now.. and it seems like it depends if it was a zero-coupon or if there was a coupon payment. If no coupon, then would be a capital gain/loss. If there was a coupon (these are available sometimes on the secondary market) - it looks like there would be both interest and capital gain/loss. But don't take my word for it - I've always had some difficulty understanding these 1099s from my brokerage account.

[Thingywingy]

Ally offering 5% on 18 month CD.
https://www.ally.com/bank/high-yield-cd/

[CountValentine]

If no coupon, then would be a capital gain/loss.

That is not good as I am guessing it will be taxed by the state.

[sam2015]

That is not good as I am guessing it will be taxed by the state.

Hmm that would be interesting. I didn’t think about that. Suppose I would sell it 1 day before maturity - it would be subject to State taxes, but if I wait till it matures then I’ll be off the hook?! Strange. But no one ever said the tax code was simple. Would be helpful if someone knows the answer to that.

[nucheiner]

Hmm that would be interesting. I didn’t think about that. Suppose I would sell it 1 day before maturity - it would be subject to State taxes, but if I wait till it matures then I’ll be off the hook?! Strange. But no one ever said the tax code was simple. Would be helpful if someone knows the answer to that.

A Fidelity rep confirmed this is the case. Actual proceeds from the Treasuries aren't taxed. But if you do business with them, that's different.
Yup, rules are rules.

[CountValentine]

26-week auction today was 5.11%
The highest rate I have seen on the secondary market was 5.01%

[jfish227]

Ally offering 5% on 18 month CD.
https://www.ally.com/bank/high-yield-cd/

capital one 360 has an 11 month cd at 5%

[CountValentine]

Ally offering 5% on 18 month CD.
https://www.ally.com/bank/high-yield-cd/

capital one 360 has an 11 month cd at 5%

This is a problem. I don't think someone would want to keep opening accounts.
Fidelity has 12/mo CD @ 5.00%
One stop shopping. 

[sam2015]

26-week auction today was 5.11%
The highest rate I have seen on the secondary market was 5.01%

I can get 5.10 from Schwab on the secondary market