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Oct 5, 2023·edited Oct 6, 2023Liked by Darnell Mayberry

Excellent call here to bolster your savings a bit. Previously I've always jumped at the chance to dump money into our unfilled IRA space and equities, but lately I've decided to add onto our EF. There's no immediate need, but with aging cars, an aging roof, and an aging HVAC system we'll have to tap that cash soon enough.

4.32% is a solid yield, way better than big banks, but if you have access to them and are okay with a bit more hassle, you can get 5.30% with a competitive money market fund. We use the Vanguard Federal Money Market VMFXX in a taxable account through Chase which is convenient. There's also treasury bill ETFs like SGOV from iShares that pay 5.30% and should be available everywhere, but I don't love an ETF as a savings vehicle unless you can buy partial shares through your brokerage.

That said, if you have a $10,000 EF, another percentage point is only another $100 per year. At a certain point you have to say good enough!

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Thank you, Tanner! Like you said, my current yield is significantly better than the peanuts I was getting from our money sitting in a bank last year. Comparatively, I’m reaching the enough is enough category. But I will admit, I’m intrigued by the vehicles you named currently offering 5.3%. I did secure my first T-bill early this year with a 5.1% rate. I’ll be writing about my experience with it soon. Thank you again for sharing some tips.

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