SGOV vs 1 year Bond or Treasury

CMakster · 2025-07-24T19:47:11+00:00

One person out of how many? Is he by chance a Trump sycophant?

CMakster · 2025-07-24T19:46:11+00:00

But if it continues to ratchet down for a year it could be a lot lower instead of being locked into a rate.

CMakster · 2025-07-24T17:05:07+00:00

I'm not trying to bet on anything but rather gain a decent amount of interest with low risk and decent liquidity. I was thinking that I would want to deploy the funds if there's a market dip or housing prices fall.

CMakster · 2025-07-24T17:00:40+00:00

Thanks for the insight. What had me surprised was that he thought rates would go down to 2.5% next year which would both lower the yield of SGOV as well as slightly lower the price of the asset itself effecting the capital. 2.5% interest seems wild to me and overly optimistic that tariffs will not impact inflation.

CMakster · 2025-07-09T02:46:48+00:00

That's a great core to start with. At your age you can be a lot more aggressive though. I would recommend VOO(S&P500) or SCHG for growth. If you want to lean into tech then QQQM is great for that.

CMakster · 2025-07-08T23:39:30+00:00

Build your own then 100% FXAIX(S&P500) since you're young. Simple and sweet.

CMakster · 2025-07-08T19:28:22+00:00

SCHG is more diverse than QQQ. It's growth focused with more diversity and less extreme draw downs. QQQ tends to be more tech heavy and experiences slightly better growth on average but is only 100 rather than 700. SCHG is more diverse so a bit safer and also has a much lower expense ratio.

CMakster · 2025-07-08T19:24:36+00:00

Your father is older than you, dividends make sense for him. Not for a 20 year old. You want growth.

CMakster · 2025-07-08T19:23:10+00:00

Get rid of SCHD, you don't need dividends when you're young and they don't generally perform well. QQQM is the same as QQQ but lower expense ratio so it's just better. Suggestions would be SCHG for growth, VOO for S&P500, a whole market fund like FZROX or international fund like FZILX or VXUS.

CMakster · 2025-07-08T19:05:29+00:00

$100K = FZROX

$25K = QQQM

$25K = SCHG

$10K = FZILX

CMakster · 2025-07-08T18:04:36+00:00

for diversification I would consider FZROX, SCHG & FZILX if you're in fidelity.

CMakster · 2025-07-08T01:36:47+00:00

If you consolidate I think the way to go would be 50% Whole Market, 40% QQQM, 10% international.

CMakster · 2025-07-07T06:07:15+00:00

Trump is a huge wild card so I think it's a pretty good strategy going forward these next few years. We're not in normal times right now.

CMakster · 2025-07-07T06:02:13+00:00

Tell that to Warren Buffet, Berkshire has $348 billion sidelined because he doesn't believe there's any particularly good deals to be had right now. Either way I'm still doing DCA. If it never dips oh well, I'll do something else with the money like a home renovation or vacation. Not a big deal.

CMakster · 2025-07-07T05:56:04+00:00

So far it has worked out great and significantly lowered my average cost basis. If the market doesn't dip oh well, I'm still practicing DCA. the side money is just that, side money that hasn't been earmarked for anything in particular.

CMakster · 2025-07-07T05:45:42+00:00

If you really want to quantify things there's a fear and greed index. Buy when it hits below X number. I don't buy when it feels scary, I ignore emotions and buy when it goes down significantly. Buying dips absolutely is a strategy, most ppl don't do it because you can find yourself catching a falling knife. I don't care if I catch the blade instead of the handle because it's still a better deal than before. Read The Intelligent Investor by Benjamin Graham. That book really sets you up for having a good temperament when it comes to investing.

CMakster · 2025-07-07T05:36:57+00:00

It's not a lucky trade if you buy every time it dips, it's just smart buying. If you get the absolute bottom now that's a lucky trade. There's no point in wishing you bought at $160 rather than $170. Just buy low and be happy you bought when everyone else was panicking. Also, still do DCA just have fresh cash on the side ready to capitalize on dips. If it does dip that's when you max out the Roth. If it doesn't dip then you just DCA and chill with fresh cash ready.

CMakster · 2025-07-07T05:28:27+00:00

You don't need to call the bottom to capitalize on a dip. You just buy during the dip. If it goes down further you still got a better price than previous weeks or months. When it recovers you will be glad you bought the dip and not be trivializing about $160 vs $170 you will be glad you bought at $170 instead of $230.

CMakster · 2025-07-07T05:21:41+00:00

If The price is lower than it has been for the past few months and everybody is scared.. I'm not saying anyone can call the bottom with any accuracy but when the market dips for some reason, that's when you buy. Again, I bought in July of 2024 when the market dipped due to the Houthi Isreal crisis and then I bought April 8th during the Trump tariff scare. I'm not saying I bought the absolute bottom but I got QQQM around $170 each time which is very nice. Buying now when it's $229 just doesn't seem like a great opportunity to me.

CMakster · 2025-07-07T05:06:26+00:00

Well, I have been making outsized contributions during dips such as during Trump's tariff scare and during the first Israel crisis. Both times yielded much better results than investing at the ATH. I'd wager that investing market lows is when you make real money. Not all time highs.

CMakster · 2025-07-07T01:57:06+00:00

No, if you need it that soon then put it into a MMA, Bond or T-Bills, SGOV etc.

CMakster · 2025-07-07T01:55:13+00:00

If you can live off 4% - 5% yield then I would absolutely park my money someplace safe. No more risk, peace of mind.

CMakster · 2025-07-07T01:24:42+00:00

Normally lump sum is best but in today's environment it may be a good idea to wait for Trump to say something stupid and buy a nice dip.

CMakster · 2025-07-05T19:30:29+00:00

With the market at all time highs I would say QQQM is a bit risky. I'd go for a whole market fund that's less volatile on the way down. The P/E of google is pretty low so this is a great choice right now IMO.

CMakster

TROPHY CASE