Thanks. I didn't quite grasp the Boxx strategy. Seems like lots of work to maybe slightly improve on a more straightforward method of realizing the market yield, maybe running into trouble down the road and certainly paying 19+ bps in fees. Is there an alternative you suggest for a fidelity account? Vusxx seems unavailable.VUSXX is paying 5.29% and 100% of your money is available immediately rather than 1/4 if you are rolling a T-Bill ladder.I am researching this possibility; thanks for the suggestion. State tax rate <5%. I like the convenience of instant transfers from HYSA to checking, but this would seem advantageous for at least a portion currently in HYSA. Any downsides vs HYSA other than a little compromise on speed of transfer and "immediate" vs somewhat quick liquidity?You could consider laddering and auto rolling 4 week T bills. Every week you would have the option to cash 1/4 of the investment. They’re currently paying 5.3% and you avoid state tax.
Somebody suggested BOXX, which uses box-spread options to transform ordinary interest at a tax-rate of 35% to long-term capital gains at 15% or 20%. I'm not fond of derivatives, but I've seen this ETF mentioned by others and the idea is intriguing. However, when I searched on this ticker symbol today I got this hit on Forbes - BOXX’s Tax Gimmick Violates Congress’ Rules On Conversion Transactions, so I would probably avoid this ETF since it seems to violate tax rules and likely carries a future penalty risk, once the IRS catches on and figures out how to recover avoided taxes from investors.
Statistics: Posted by Financologist — Thu Jun 20, 2024 1:03 am