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Yes, indeed, liquidity is what I am buying by accepting a bit less from HSBC.

There's liquidity and then there's liquidity. Depends on what you need the liquidity for. For an E-fund, laddering 6-month T-bills would seem good enough. For keeping reserves for a market opportunity, instant liquidity may be worth a little less yield. For cash flow during retirement, a ladder of longer maturities, if that gets you a higher yield (as it should when the yield curve isn't flat or inverted), is fine (also doubles for an E-fund, once established).

I'm now using some 6-months to even out my long term ladder (which I noticed a few months ago was uneven, because big expenditures, like summer tax bill, are uneven).
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