Have had some cash sitting in a HYSA and some in a cd earning close to 4%. CD is coming up to renew but rates are slightly less now.
I live in a state with state taxes and have been researching about options to buy funds like SGOV that are exempt from state tax so considering that as an option instead of the CD.
Does anyone know if there other options to put the cash somewhere that would be exempt from federal and state tax? Any reason not to move the money into something like SGOV?
Best place to park some cash?
byu/Remarkable_Goat_9479 ininvesting
Posted by Remarkable_Goat_9479
3 Comments
Unless you’re in the 37% tax bracket forget about federal tax exemption
I moved a good chunk into SGOV last month. Another good amount in HYSA @ 4% with Robinhood Gold.
I just got my first distribution on SGOV and let it reinvest seems like a no brainer to me. Even if you need to sell some it’s highly liquid. Since we’re both in states that tax, it would offset any loses (i.e. it’s still better than HYSA).
Someone tell me if I am wrong.
If you don’t really need the money for anything, then there is always I-Bonds. They also act as an inflation hedge.