AUTHOR: Sanjib Saha on 6/11/2026 FIRST: Michael1 on 6/11 | RECENT: DavidHLancaster on 6/14
Comments
John, many thanks for a thorough analysis of different scenarios and an objective assessment on one of the several common tax-related myths. A small observation about the middle couple, specifically about the new OBBBA additional deduction of up to $6000 per eligible person. The single filer loses this deduction completely and therefore there is an additional tax cost for the income. I thought this deduction is temporary and will phase out in 3 years. Does your analysis assume that this would be extended further, potentially indefinitly? If not, then I think the cost of widowhood in this case will drop from ~$8500 to less than $6000. Thanks again for the excellent piece.
Thank you for your kind words, Chris. I'm still learning how to write in non -wall-street language. The HD style guide and numerous editing tips from late Jonathan have been immensely helpful.
Thanks, Andrew. I completely understand where you're coming form. For annual reserve, I avoid going longer than 1 year duration. My most favorite for slightly longer-term cash is VTIP. Recently, I'm trying out a non-Treasury offering (VUSB), but haven't formed any opinion yet one way or the other. If your brokerage has simple steps for Treasury auction participation and auto-roll on maturity, that might be a good thing to try. I've used that for quite some time, and it had almost no maintenance headache. I stopped using it simply because of the churn on my overall holdings, but it wasn't a big deal either.
Hello Jeff, I use VTIP quite a bit. Other than that, I've tried several 0-3 months and 1-year funds (both Vanguard and iShare versions), I haven't seen much difference in the offerings (e.g. SGOV/VBIL or SHV). Since last year, I've been curious about VUSB though it's not treasury and using it. So far, there hasn't been any surprise with it. I use more than one fund to avoid the wash sale annoyance (i.e. sell ones bought more than a month ago). Frankly, I haven't spent a lot of time to find "the best" short-term fund. I simply use the good-enough funds.
Thanks, Cammer. I completely agree with you that "keeping things simple" often outweighs "marginally better interest rate". That was my guiding principle too, until I actually tried out an alternative and see if there's any increased overhead at all. I found it practically the same. As such, I recently started using a cash-management account of my brokerage account and liking it so far. To me, it's like a checking account for all practical purposes, with the cash sitting in Govt money-market fund (a one-time choice during account setup which can be changed later if needed).
Comments
John, many thanks for a thorough analysis of different scenarios and an objective assessment on one of the several common tax-related myths. A small observation about the middle couple, specifically about the new OBBBA additional deduction of up to $6000 per eligible person. The single filer loses this deduction completely and therefore there is an additional tax cost for the income. I thought this deduction is temporary and will phase out in 3 years. Does your analysis assume that this would be extended further, potentially indefinitly? If not, then I think the cost of widowhood in this case will drop from ~$8500 to less than $6000. Thanks again for the excellent piece.
Post: Widow Tax
Link to comment from July 25, 2026
Thank you, Andrew. We plan to add some more easy-to-use tools late this year on the site to make it more useful.
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Thank you for your kind words, Chris. I'm still learning how to write in non -wall-street language. The HD style guide and numerous editing tips from late Jonathan have been immensely helpful.
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
That's an excellent point. Since we don't have a State tax, it isn't much a benefit for me (yet) but for those who do, this is an extra sweetener.
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Thank you so much, Dan. Much appreciated!
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Oh yes. Thanks, Randy. Funny how many different "MAGI" calculations are there :).
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Thanks, Randy. I also feel that the "loss due to high duration" gets compensated over time through higher dividends.
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Thanks, Andrew. I completely understand where you're coming form. For annual reserve, I avoid going longer than 1 year duration. My most favorite for slightly longer-term cash is VTIP. Recently, I'm trying out a non-Treasury offering (VUSB), but haven't formed any opinion yet one way or the other. If your brokerage has simple steps for Treasury auction participation and auto-roll on maturity, that might be a good thing to try. I've used that for quite some time, and it had almost no maintenance headache. I stopped using it simply because of the churn on my overall holdings, but it wasn't a big deal either.
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Hello Jeff, I use VTIP quite a bit. Other than that, I've tried several 0-3 months and 1-year funds (both Vanguard and iShare versions), I haven't seen much difference in the offerings (e.g. SGOV/VBIL or SHV). Since last year, I've been curious about VUSB though it's not treasury and using it. So far, there hasn't been any surprise with it. I use more than one fund to avoid the wash sale annoyance (i.e. sell ones bought more than a month ago). Frankly, I haven't spent a lot of time to find "the best" short-term fund. I simply use the good-enough funds.
Post: Beyond Bank Accounts
Link to comment from June 14, 2026
Thanks, Cammer. I completely agree with you that "keeping things simple" often outweighs "marginally better interest rate". That was my guiding principle too, until I actually tried out an alternative and see if there's any increased overhead at all. I found it practically the same. As such, I recently started using a cash-management account of my brokerage account and liking it so far. To me, it's like a checking account for all practical purposes, with the cash sitting in Govt money-market fund (a one-time choice during account setup which can be changed later if needed).
Post: Beyond Bank Accounts
Link to comment from June 13, 2026