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2025 / 2026 Investment Thread

Been watching CNBC a bit over the holiday break. Seems they’ve become a shill for the administration. Some dude on today talking about the $trillions coming in from tariffs and how that’s a positive for the 2026 market performance.
One of the anchor last week was talking about strong economic and employment numbers and how there’s zero headwinds.
No credibility amongst the regulars or the guests.
Same just before the financial crisis collapse and dotcom collapse.
 
Caddywumpus said:
Ended 2025 with 50.26% for the year. All my winnings are going to buying my wife a house
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Wow.

I was "only" up 19.4 percent.

At 69 that is plenty for my risk level.

80 percent is in Roth accounts, soon to be 90 percent so our strategy to reduce future taxes, future RMDs and make things easier for our heirs has worked out well. Start collecting SS in late September, wife starts late November.

Assuming we live that long! :laughing
 
I dont feel im taking inherently more risk than the market. I only buy companies I believe in. I use the wheel strategy to constantly harvest profits. My tax bill is insane.
 
Why didn't anyone tell me about 3-month T-Bills and the dividends being tax free income?!
*puts cash into SGOV*
 
MC BumSlap said:
Why didn't anyone tell me about 3-month T-Bills and the dividends being tax free income?!
*puts cash into SGOV*
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Ive been doing this for past 2+ years, 3month tbills outpaced CDs, it flipped last year with all the rate drops

Cd pay more due locking the higher rate for 12+ months and still offsets state taxes
 
"Taxes are the price we pay to live in a civil society"

-Oliver Wendell Holmes Jr. (Supreme Court Justice)
 
SGOV dividends have no tax advantage because the vehicle that holds the bonds is an ETF. You can buy the bonds directly from treasurydirect, and this avoids state taxes (cannot avoid federal taxes.) But god help you if you actually need the money and want to exit the position. It's technically possible but not easy.
 
mercurial said:
SGOV dividends have no tax advantage because the vehicle that holds the bonds is an ETF. You can buy the bonds directly from treasurydirect, and this avoids state taxes (cannot avoid federal taxes.) But god help you if you actually need the money and want to exit the position. It's technically possible but not easy.
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why are you buying it from treasurydirect, just buy it in your brokerage, buy sell all same day and funds will be accessible same day or +1, not sure why you going that route, schwab and fidelity and others like dont charge anything to buy this

i also buy all my tbills through fidelity and not treasurydirect
 
mercurial said:
SGOV dividends have no tax advantage because the vehicle that holds the bonds is an ETF. You can buy the bonds directly from treasurydirect, and this avoids state taxes (cannot avoid federal taxes.) But god help you if you actually need the money and want to exit the position. It's technically possible but not easy.
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The statement that the SGOV ETF has no tax advantage is incorrect; its primary tax benefit is that the income is exempt from state and local taxes.

SGOV Tax Treatment Details

  • Federal Tax: Income distributions from SGOV, which are technically dividends derived from U.S. Treasuries, are subject to federal income tax at your ordinary income tax rate.
  • State & Local Tax: The key advantage is that this income is exempt from state and local income taxes. This makes SGOV particularly attractive for residents of states with high income tax rates, as it can result in a better after-tax return compared to fully taxable alternatives like a high-yield savings account (HYSA) or a standard money market fund.
  • Capital Gains: Due to SGOV's focus on ultra-short-term bonds (0-3 months maturity), capital gains when selling shares are typically minimal. Any capital gains are subject to standard capital gains tax rules (short-term or long-term depending on the holding period).
 
I've done an 80/20 split with some cash via my Fidelity account. 80% in SGOV and 20% in SPAXX.
 
Fair enough, it's been a few years since I owned any T-bills directly, and I wasn't aware that you could easily buy the issuance through the brokers.

@Caddy also thanks for clarifying that, looks like the dividends are indeed exempt from local taxes. That being said, if you sell SGOV (which I often do, as I use it as a short term parking vehicle for cash), the interest does accrue as principal (the symbol seems to increment like 1 cent a day to reflect accrued dividend value) and that capital gain almost certainly would be taxed in all normal ways.
 
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