SCHO [Schwab Short-Term U.S. Treasury as a cash account]

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hoops777
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SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by hoops777 » Thu Jul 30, 2020 1:55 pm

What are the current thoughts of using a short term treasury etf like SCHO for cash sitting in your brokerage,both IRA and taxable?
K.I.S.S........so easy to say so difficult to do.

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nisiprius
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by nisiprius » Thu Jul 30, 2020 1:59 pm

SCHO seems fairly similar to SHY. You may find these statistics interesting:
Using mutual funds and ETFs for short-term savings (1 year): SHY (iShares 1-3 year Treasury bond)
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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hoops777
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by hoops777 » Thu Jul 30, 2020 2:29 pm

Thanks
K.I.S.S........so easy to say so difficult to do.

000
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by 000 » Thu Jul 30, 2020 9:42 pm

FDIC insured online high yield savings is better than a short-term bond ETF for cash in taxable.

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hoops777
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by hoops777 » Fri Jul 31, 2020 12:10 am

000 wrote:
Thu Jul 30, 2020 9:42 pm
FDIC insured online high yield savings is better than a short-term bond ETF for cash in taxable.
True but what about your brokerage account and IRA?
K.I.S.S........so easy to say so difficult to do.

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jeffyscott
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by jeffyscott » Fri Jul 31, 2020 11:34 am

hoops777 wrote:
Fri Jul 31, 2020 12:10 am
000 wrote:
Thu Jul 30, 2020 9:42 pm
FDIC insured online high yield savings is better than a short-term bond ETF for cash in taxable.
True but what about your brokerage account and IRA?
IRA savings account and/or CDs?
https://www.depositaccounts.com/ratetab ... vings.html

If cash is in brokerage account or IRA with the intent to invest, then it may be a different matter, but if it is just there for possible spending then you can certainly do better than that 0.1% or so from a short term treasury ETF by moving cash elsewhere.
Time is your friend; impulse is your enemy. - John C. Bogle

000
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by 000 » Fri Jul 31, 2020 3:05 pm

hoops777 wrote:
Fri Jul 31, 2020 12:10 am
000 wrote:
Thu Jul 30, 2020 9:42 pm
FDIC insured online high yield savings is better than a short-term bond ETF for cash in taxable.
True but what about your brokerage account and IRA?
For taxable brokerage, link your online savings to the broker. For IRA, choices are more limited.

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Doc
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Re: SCHO [Schwab Short-Term U.S. Treasury as a cash account]

Post by Doc » Fri Jul 31, 2020 4:49 pm

hoops777 wrote:
Thu Jul 30, 2020 1:55 pm
What are the current thoughts of using a short term treasury etf like SCHO for cash sitting in your brokerage,both IRA and taxable?
I'm using Vanguard Short-Term Treasury ETF VGSH in our Schwab accounts. :D

SCHO/SHY/VGSH basically all same. (SHY has a little higher ER.)
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.

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