Although I've been retired a couple years, this is the first year I needed to sell some stock to accumulate cash for my anticipated annual needs.
I was planning to keep most of the cash in MM core position and part in short Treasuries.
But it looks like the MM earnings are 'ordinary dividends' so taxed I guess as income for both federal and state, but looks like Treasuries pay 'interest' that is taxed as income for federal but not taxed by my state.
So does it make sense to keep all my annual 'cash' bucket in Treasuries and just sell them as needed on the secondary market, or maybe better keep in short one to 6 month treasuries that are maturing regularly?
I expect to need to withdraw the money as uneven lumps (like to pay for a cruise).
Are there other options to keep 'cash' that would be useful?
I was planning to keep most of the cash in MM core position and part in short Treasuries.
But it looks like the MM earnings are 'ordinary dividends' so taxed I guess as income for both federal and state, but looks like Treasuries pay 'interest' that is taxed as income for federal but not taxed by my state.
So does it make sense to keep all my annual 'cash' bucket in Treasuries and just sell them as needed on the secondary market, or maybe better keep in short one to 6 month treasuries that are maturing regularly?
I expect to need to withdraw the money as uneven lumps (like to pay for a cruise).
Are there other options to keep 'cash' that would be useful?