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I plan on buying real estate within the next year, possibly earlier. Where can I park my cash in the meantime to make a bit of money? My Ally Savings account yields 0.8% annually. Can I do better than that while keeping it liquid (or liquid within 6 months)?
A short term bond fund. It's not cash, but it will probably give you a bit more return in exchange for the small risk of NAV fluctuation. If you strictly want to stay in cash you cannot do better than a high yield savings account.
SWSBX. You need to be aware that the NAV can go down at any time, right now it is at 10.39, and you should reasonably expect it to go down to 10 at any time. If you don't accept that, stick with cash.
Last edited by mptfan on Tue Sep 15, 2020 4:05 pm, edited 1 time in total.
Play the "bank bonus" game, if you feel it's worth your time. Probably better return than a bond fund. There's no risk to principal at all. Doctor of Credit website has info about current bonuses.
i vote with the just leave it crowd. you have it in a good place. most money markets are paying less, and often way less, than that .8 percent. there is a risk of losing money in a short term bond fund if you try to use one to squeeze out a 1 percent return by going to one. not worth the difference in my book.