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The cash account at Fidelity is paying about 0.5% annually, whereas the short treasuries are about 1.3% or so, I think.
If there existed a retiree that had about $50K in the Fidelity money market, would it be worth buying t bills? A back of the envelope calculation suggests it would net $400 in additional interest. None of the $50K is expected to be accessed in the next 12 months, but flexibility is key.
Being exposed to this quandary, I found the Fidelity "Auto Roll" program, which looks like it would be a hands-off method to keep invested in short treasuries. But I didn't get far enough into it to understand the commissions, but I thought I heard that if you buy at auction, it's commission-free.
Has anyone done this? Any "gotchas" to think about? I thought that maybe a simple ladder could be created that had something maturing every month or two. You give up a little flexibility, but pick up a bit more interest.
EDIT: the 0.5%, above, is wrong. It's closer to 1.0%. I had mistakenly looked at "EY" (expected yield) instead of the 7 day.
If there existed a retiree that had about $50K in the Fidelity money market, would it be worth buying t bills? A back of the envelope calculation suggests it would net $400 in additional interest. None of the $50K is expected to be accessed in the next 12 months, but flexibility is key.
Being exposed to this quandary, I found the Fidelity "Auto Roll" program, which looks like it would be a hands-off method to keep invested in short treasuries. But I didn't get far enough into it to understand the commissions, but I thought I heard that if you buy at auction, it's commission-free.
Has anyone done this? Any "gotchas" to think about? I thought that maybe a simple ladder could be created that had something maturing every month or two. You give up a little flexibility, but pick up a bit more interest.
EDIT: the 0.5%, above, is wrong. It's closer to 1.0%. I had mistakenly looked at "EY" (expected yield) instead of the 7 day.
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