I’m not 100% in cash. We hold some foreign currency (Swiss francs) and some gold in a gold pool account at Kitco.
Re: t-bills, there is an auction every Monday which determines what the yield will be for that particular 6-month t-bill. For instance, last Monday, the yield was 5.297%. That 5.297% gain is not taxed by California, which makes the after-tax gain higher. Assuming a Calif tax rate of 9.25% on the gain, than a 6-month CD would have to have a rate of approx 5.78% in order to have the same after-tax gain. And as far as length of t-bills or CD’s, I’m more comfortable with 6-months right now, and 1-year rates are not much higher anyway.
