As residents in a high-tax state (CA), can you think of any reason why it would be stupid or short-sighted to put the majority of our cash, currently held in money market accounts, into 6 month T bills instead? We would, of course, leave sufficient funds in a money market account for a year's worth of living expenses in case of emergency.

A whole year's worth of living expenses in a money market account? That seems excessive to me. Even if you are worried about losing your job. VickiSpouse just lost his job and retired, so that's no longer a concern for us.

I can sell my treasuries at any time for a $45 fee and get back my principal and some of the interest. (I haven't calculated it out to compare it with a CD early-withdrawal penalty.)

I've got a ladder started with 3 and 6 month Treasuries, so there is money coming free every 3 months. You could put some in 4-week Treasuries too.

On the other hand, you have to consider your personal sleep factor--how much do you need in a money market account to let you sleep at night?

Vickifool