Gyroscopic Investing

HI,

I have setup a couple PPs, one in an IRA, where SHV is available and one in a 401k, where no short term treasuries are.

The 401k by default, the cash is sitting in a TD Ameritrade Money Market.

The IRA, I'm not sure I am clear in reading some of the other posts.  I can leave it as straight cash (IB leaves as cash, 0%), or buy SHV with a .14% expense ratio and 0% yield.

Why would I buy into SHV for a negative return if leaving in cash is zero?  Is it really for safety?  Don't I then also have the potential iShares failing issue?  As is, IB covers cash in accounts up to 250k (I am nowhere near this).

Thanks,

Mike

If by "IB" you mean Interactive Brokers, you can by any marketable US Treasury there. I have done it. The bid ask spread is at the market, and the commission is small, $5-$10. One idea would be to construct a short term ladder with bills and notes. That is what I am doing.

If you were not talking about Interactive Brokers, then never mind...