Where to put some excess cash...not a CD or Money Market!

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Tarheels1984
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Joined: Thu Jan 21, 2021 12:02 pm

Where to put some excess cash...not a CD or Money Market!

Post by Tarheels1984 »

My wife and I have about $100,000 from our business that we don't want to keep just sitting in the checking account. Our business doesn't require large amounts of cash for operations, so we can do without immediate access to it. We need some advice on where we can put this money that would make us more than a CD or money market account.

If we needed access to it in the future, we wouldn't have to have it immediately. If we could access it within 3-4 weeks, that would be quick enough.

What are some good, safe options? Bond funds? Some sort of large cap ETF or something that's made up of companies that are pretty stable?

I want it to be pretty low risk with the option to pull it out if we need to with no penalty. Thanks in advance for the suggestions
Jack FFR1846
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Re: Where to put some excess cash...not a CD or Money Market!

Post by Jack FFR1846 »

High yield savings account.

Otherwise, there is nothing.
Bogle: Smart Beta is stupid
atdharris
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Re: Where to put some excess cash...not a CD or Money Market!

Post by atdharris »

If you may need all of it in 3-4 weeks, I would not buy equities. We could correct 10% for all we know. If you don't think you'd need the full amount for another year or so, then sure, go for it. Otherwise, put it in a HYSA. You'll make pretty much nothing on it, but you won't lose it.
Gill
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Re: Where to put some excess cash...not a CD or Money Market!

Post by Gill »

How about Vanguard's Ultra Short Term Bond Fund?
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
rockstar
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Re: Where to put some excess cash...not a CD or Money Market!

Post by rockstar »

I'd search for low volatility ETFs. You might still lose money, but it's another alternative.
Scooter57
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Re: Where to put some excess cash...not a CD or Money Market!

Post by Scooter57 »

Bond fund share prices can drop, at times enough to harm you if you needed all the money. And the yields for the ultra short bonds which would drop the least are only a few basis points higher than a No Penalty CD from Ally Bank. .56% for the bond fund and .50 for the No Penalty CD. You can get the No Penalty CD money out of Ally when you need it with a phone call. If you have linked your brokerage account or local bank to Ally it can transfer in a day or two.

Live Oak Bank (an online bank) has a Savings account paying .60% now. PenFed Credit Union (also online) has a .55% savings account. Each are less risky than the bond funds.

There is really no good choice right now for money you might need in the next 5-10 years save to be patient and accept obscenely low rates.
Explorer
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Re: Where to put some excess cash...not a CD or Money Market!

Post by Explorer »

I saw M1 finance offer 1% APY checking account recently... not sure of the terms and conditions. It is supposed to be FDIC insured as well.

Worth investigating...
STINGRAY75
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Location: Central Wisconsin

Re: Where to put some excess cash...not a CD or Money Market!

Post by STINGRAY75 »

How about a short term corporate bond fund ? VSCSX comes to mind.
snapvestor
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Joined: Sat Apr 18, 2020 1:50 pm

Re: Where to put some excess cash...not a CD or Money Market!

Post by snapvestor »

I'm using part in HYSA and the other in taxable brokerage using broad based index funds, both ETFs and mutual funds (need to invest down to the penny! :)) I'm saving 40% in HYSA and 60% in the market. I figure this the best I can do right now for excess cash.
tiburblium
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Re: Where to put some excess cash...not a CD or Money Market!

Post by tiburblium »

Figure out an ammount you might need to tap at any given time and keep that ammount in cash/bank, invest the rest. Don’t invest money you “might need in a matter of weeks”

I don’t keep any cash buffer personally, all of my money is invested. However, I have no debt, very low expenses which dont change, and high income from multiple sources
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Toons
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Re: Where to put some excess cash...not a CD or Money Market!

Post by Toons »

Jack FFR1846 wrote: Thu Jan 21, 2021 5:32 pm High yield savings account.

Otherwise, there is nothing.

3-4 weeks
Ditto

:wink:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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