Here’s the most recent T Bill rates: https://www.treasurydirect.gov/auctions/announcements-data-results/
The last 26 week rate was 5.381%
SPAXX 7 day yield is 4.75%
T Bills are also state tax exempt, CA 9.3% bracket, which makes the T Bills more like 5.88%
I've been buying a rolling 6 month T Bill ladder since sometime last year. Considering extending the duration out to around 2 years. If you're buying T Bills, what's your duration right now?
I have mixed feelings about the provisions of the TCJA expiring in 2026. The lower tax brackets and QBI have made Roth contributions really attractive. However, I would really enjoy having lower taxable income with more Traditional contributions, which I would plan to do in 2026. Sometimes I feel like I’m planning too far ahead, since for all I know, the TCJA could become permanent.
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I’ll be staying no matter if Reddit reverses their decision. The communities I’d like to follow might be smaller here, but I’m sure they will grow.
To be honest, the 1% extra is probably only yielding me around $500/yr, but I have learned a lot more about fixed income over the last year than I've learned while rates were low.
I've never been in the position to have to decide when/if to extend the duration of my bonds, hence the original question. My gut is saying that sometime this year I should extend to around 2 years duration and that by next year rates might start going down. But of course I don't know nothing!