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is it better to leave 6 figures in a settlement fund paying 5.26% at least till rates start till drop or is it better to ladder CDs or Treasuries? I was laddering mid 6 figures in both taxable and IRA accounts but it turned out i was getting less interest than the settlement fund once you go out to 18 month treasuries.
A ladder with 3 or 6 month treasuries pays about the same as the settlement fund (a little more actually 5.37% for 4mth treasuries right now)
i am thinking it would be better to ladder the 4 to 5 month treasuries to get the slight increase in interest and then not pay state income tax whereas the settlement fund is taxable by the state but wanted to see if this is a 'it doesn't really matter' situation.
is it better to leave 6 figures in a settlement fund paying 5.26% at least till rates start till drop or is it better to ladder CDs or Treasuries? I was laddering mid 6 figures in both taxable and IRA accounts but it turned out i was getting less interest than the settlement fund once you go out to 18 month treasuries.
A ladder with 3 or 6 month treasuries pays about the same as the settlement fund (a little more actually 5.37% for 4mth treasuries right now)
i am thinking it would be better to ladder the 4 to 5 month treasuries to get the slight increase in interest and then not pay state income tax whereas the settlement fund is taxable by the state but wanted to see if this is a 'it doesn't really matter' situation.
Statistics: Posted by john0608 — Fri May 10, 2024 2:51 pm — Replies 0 — Views 104
