Smart Yield
Our investment alternative to a high-yield savings account
168 followers
Smart Yield is our investment product designed to earn you the maximum amount of money on your cash by being smart about taxes. We look at your personal federal & state tax rates, scan the market and find you the money market fund that pays the most... for you
Carry
I have not been this excited for a new Carry product launch in a very long time
I've been fortunate enough to be beta testing our new "Smart Yield" product and I think it's going to be a huge hit
Here's how it works:
Most people keep their uninvested cash in a high-yield savings account. While they pay out a reasonable rate (3.5%-4%), the income is fully taxed at both the federal and state level.
For people who pay high taxes, you can likely save a reasonable amount of money on taxes by using special tax-advantaged money market funds instead... Vanguard, Fidelity, Schwab etc. all have special funds that optimize for:
- No federal taxes
- No state and local taxes
- Both no federal AND no state taxes in New York, California etc.
The challenge is yields for these products keep changing: one month, you could earn more in a treasury fund that pays no state taxes, the other month you could earn more in a muni fund that pays no federal taxes.
That's where our new product Smart Yield comes in: it automatically scans our universe of funds (most by Vanguard and Fidelity) and calculates which fund could pay you the highest tax-equivalent yield and aims to allocate you there
And checks for the highest tax-equivalent yield every single day!
Whenever it finds a fund that could pay you meaningfully more (from our whitelisted list of funds), it automatically reallocates you to that one.
For me personally, muni money market fund yields were really high a couple of weeks ago. But now, they've dropped so I'm moved automatically to a treasury money market fund.
For me, tax optimizing my cash makes more sense than leaving funds in a high yield savings account where my interest is highly taxed.
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Disclosures: Smart Yield investment products are not FDIC insured and may carry risk. Any yields offered exclude 0.20% annual advisory fees and Carry’s membership fee. The service is offered by Carry Advisors LLC, our SEC-registered investment adviser, with brokerage services provided by Global Carry LLC and DriveWealth LLC, making it a comprehensive cash management solution that combines algorithmic optimization with professional investment management.
While Carry Advisors internet-based advisory services are designed to assist clients in achieving customer defined financial goals, asset allocations and diversification do not guarantee a profit or protect against a loss, and past performance is no guarantee of future results. Carry Advisors does not provide tax advice. For more details, see our Form CRS, Form ADV Part 2 and Smart Yield disclosures.
Smart Yield offers a smart alternative to traditional savings accounts by automatically allocating funds into strategic money market investments. Its potential tax benefits help maximize earnings efficiently.
so wait... why wouldn't a US resident use this?
Carry
@jason_chernofsky you tell me! we think its a pretty dope product
couple of things worth noting:
1 - we charge a 0.2% advisory fee to do this automatically for people, some people may not want to pay that. if people want to simply buy the money market funds directly in their account, there are no fees for that but it won't automatically look for updated yields.
2 - worth noting that these are investment products -- so while money market funds are designed to be ultra safe investments, risk of principal is theoretically possible.
with that said, money market funds have only ever "broken the buck" 3 times in history and not since 2008. also to date, no money market fund backed by government securities has ever broken the buck