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Short Term Cash Investment

Posted: Tue Sep 13, 2016 8:47 am
by nickeld
What are some good options for storing a large chunk of short term cash (will be needed within 1 year)? Right now it is an Ally checking account which on a relative basis versus CD's and such earns a pretty decent yield. Any suggestions would be greatly appreciated

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 8:53 am
by Harpoon1
nickeld wrote:What are some good options for storing a large chunk of short term cash (will be needed within 1 year)? Right now it is an Ally checking account which on a relative basis versus CD's and such earns a pretty decent yield. Any suggestions would be greatly appreciated
Not sure if you meant "savings" account instead of "checking" account but, needing it within a year, an online saving account paying 1.0% or so, is the best option available right now!

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 9:03 am
by Jack FFR1846
Ally savings account at 1% is as good as it gets.

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 9:26 am
by Toons
Others might disagree,
As there is risk of principal loss,but
I would feel comfortable with
Vanguard Short Term Investment Grade.
:happy

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 9:28 am
by aj76er
I'm using Ally Savings @ 1%.

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 11:15 am
by nickeld
Harpoon1 wrote:
nickeld wrote:What are some good options for storing a large chunk of short term cash (will be needed within 1 year)? Right now it is an Ally checking account which on a relative basis versus CD's and such earns a pretty decent yield. Any suggestions would be greatly appreciated
Not sure if you meant "savings" account instead of "checking" account but, needing it within a year, an online saving account paying 1.0% or so, is the best option available right now!
No, it's an interest checking account yielding .6% annually

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 11:16 am
by nickeld
Thanks everyone, confirmed my hunch

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 11:19 am
by rbaldini
A thought: suppose you need 50k next year, and you have, say, 300k in stock and bond funds. What's the probability that, next year, you won't be able to access this 50k from these funds? The value of the funds would have to drop 83% in a year, which I believe is unprecedented. Obviously this is a contrived example, but the point is: depending on how much money you already have, you may not really need to park the money in a separate account (although that is certainly the safest route). This is how I'm handling my future house down payment.

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 11:23 am
by nickeld
Toons wrote:Others might disagree,
As there is risk of principal loss,but
I would feel comfortable with
Vanguard Short Term Investment Grade.
:happy
Thanks, I might think about a portion in short term bonds

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 11:46 am
by FishinGeek
I am using Goldman Sachs Bank (GS Bank) for parking cash, online savings account 1.05%.

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 11:59 am
by jfave33
rbaldini wrote:A thought: suppose you need 50k next year, and you have, say, 300k in stock and bond funds. What's the probability that, next year, you won't be able to access this 50k from these funds? The value of the funds would have to drop 83% in a year, which I believe is unprecedented. Obviously this is a contrived example, but the point is: depending on how much money you already have, you may not really need to park the money in a separate account (although that is certainly the safest route). This is how I'm handling my future house down payment.
Complicated by tax advantaged accounts. Still if you had $100k in taxable in equities then there is probably no need to keep a separate stash in a 1% account. If it drops to $50k and you need it then you sell and swap bonds for equities in tax advantaged. Assuming you have enough bonds.

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 12:02 pm
by Harpoon1
nickeld wrote:
Harpoon1 wrote:
nickeld wrote:What are some good options for storing a large chunk of short term cash (will be needed within 1 year)? Right now it is an Ally checking account which on a relative basis versus CD's and such earns a pretty decent yield. Any suggestions would be greatly appreciated
Not sure if you meant "savings" account instead of "checking" account but, needing it within a year, an online saving account paying 1.0% or so, is the best option available right now!
No, it's an interest checking account yielding .6% annually
Ok, then I gotta ask why the checking and not the savings account, that pays 1.0%?

I have both accounts at Ally, and keep 99% of the money in savings, and with one "click" it's transferred and immediately available in the checking account.

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 12:02 pm
by AllieTB1323
Jake Hogan wrote:I am using Goldman Sachs Bank (GS Bank) for parking cash, online savings account 1.05%.
Ditto, anyway it's fun to say "our money at Goldman Sachs".

Re: Short Term Cash Investment

Posted: Tue Sep 13, 2016 9:02 pm
by Dandy
You can get a bit more than 1% on a on line savings account. With a large amount of money at stake it might be worth it to look. I suggest depositaccounts.com. Look at Savings and bank promotions.

Re: Short Term Cash Investment

Posted: Wed Sep 14, 2016 3:25 am
by sperry8
Dandy wrote:You can get a bit more than 1% on a on line savings account. With a large amount of money at stake it might be worth it to look. I suggest depositaccounts.com. Look at Savings and bank promotions.
Ally is nice - but you can get 1.26% APY at Popular Direct (Banco Populars online bank). Or you can get a 1 yr CD from them at 1.3%. Peruse the depositaccounts.com website to verify there isn't anything higher at the moment.

Re: Short Term Cash Investment

Posted: Wed Sep 14, 2016 11:17 am
by nickeld
Harpoon1 wrote:
nickeld wrote:
Harpoon1 wrote:
nickeld wrote:What are some good options for storing a large chunk of short term cash (will be needed within 1 year)? Right now it is an Ally checking account which on a relative basis versus CD's and such earns a pretty decent yield. Any suggestions would be greatly appreciated
Not sure if you meant "savings" account instead of "checking" account but, needing it within a year, an online saving account paying 1.0% or so, is the best option available right now!
No, it's an interest checking account yielding .6% annually
Ok, then I gotta ask why the checking and not the savings account, that pays 1.0%?

I have both accounts at Ally, and keep 99% of the money in savings, and with one "click" it's transferred and immediately available in the checking account.
Yeah, I probably should open the savings account too