Are you sure about that? I did the math on this a couple months ago, comparing Vanguard's treasury money market to their California money market, and the rate was so much better on a treasury money market fund that it easily compensated for the extra taxes. And when I was checking, the spread between the California fund and the Treasury fund was less than it is now. I mean, right now Fidelity's treasury money market is paying 2.28% more than their California muni (2.65% vs 4.93%--almost twice the rate). Even in your 50% bracket it seems like you'd earn slightly more on FDLXX (unless I'm missing something). Plus the Treasury Money Market fund is a safer fund.I pay more than 50% in income taxes, so something like a CA Muni MMF (FSPXX) provides highest after-tax return.
Statistics: Posted by cb474 — Tue Jun 11, 2024 2:45 am — Replies 6662 — Views 1287545