Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

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ps56k
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Location: Chicago area

Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by ps56k » Tue Jun 23, 2020 4:20 pm

With the rates way down again, where or what is the thinking of holding cash.

Some of my current holding acct locations.... need to consolidate, but keep some for ongoing payments.

- Schwab Sweep from investment transactions .01%
- Chase checking .03%
- Ally MM .50%
- Ally Saving 1.10%
- Ally CD (ladder out 1 year) 1.25%
- Vang Intermediate Muni 1.42%
- Vang Long Term Muni 1.96%
- Vang Total Bond 1.40%
- Pimco Active - BOND - 1.93%

Thinking of migrating from the less than 1% accounts to our IT and LT Muni accts - to lessen "ordinary income" -
BUT still need cash in checking or MM for paying bills, property taxes, ES-1040 taxes, etc
Last edited by ps56k on Tue Jun 23, 2020 4:34 pm, edited 1 time in total.

sycamore
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by sycamore » Tue Jun 23, 2020 4:28 pm

Various ways of thinking about cash.
a) Hold your nose and accept the low yields in your savings/checking account and/or money market fund.
b) Move your cash assets around to the best alternatives: no penalty CDs, high-yield savings, etc.
c) Play the bonus game and move your cash assets to banks/brokerages that pay a bonus - effectively get a higher yield on your money but typically requires holding a minimum balance for possibly many months.
d) Reach for yield, go for longer duration or more credit risk.
e) Who needs cash? Go stocks stocks stocks!

I'm doing a bit of c).

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ohboy!
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by ohboy! » Tue Jun 23, 2020 5:21 pm

sycamore wrote:
Tue Jun 23, 2020 4:28 pm
Various ways of thinking about cash.
a) Hold your nose and accept the low yields in your savings/checking account and/or money market fund.
b) Move your cash assets around to the best alternatives: no penalty CDs, high-yield savings, etc.
c) Play the bonus game and move your cash assets to banks/brokerages that pay a bonus - effectively get a higher yield on your money but typically requires holding a minimum balance for possibly many months.
d) Reach for yield, go for longer duration or more credit risk.
e) Who needs cash? Go stocks stocks stocks!

I'm doing a bit of c).
Me too. Bonus game, best low risk APR. some leg work involved. Currently working on wells fargo and capitalone. Doctorofcredit is a good resource to find the best bank bonuses.

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1789
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by 1789 » Tue Jun 23, 2020 5:23 pm

Unless you are talking about a million in CASH, VMMXX should be a fine place to keep that, imho.
"My conscience wants vegetarianism to win over the world. And my subconscious is yearning for a piece of juicy meat. But what do i want?" (Andrei Tarkovsky)

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anon_investor
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by anon_investor » Tue Jun 23, 2020 5:41 pm

ps56k wrote:
Tue Jun 23, 2020 4:20 pm
With the rates way down again, where or what is the thinking of holding cash.

Some of my current holding acct locations.... need to consolidate, but keep some for ongoing payments.

- Schwab Sweep from investment transactions .01%
- Chase checking .03%
- Ally MM .50%
- Ally Saving 1.10%
- Ally CD (ladder out 1 year) 1.25%
- Vang Intermediate Muni 1.42%
- Vang Long Term Muni 1.96%
- Vang Total Bond 1.40%
- Pimco Active - BOND - 1.93%

Thinking of migrating from the less than 1% accounts to our IT and LT Muni accts - to lessen "ordinary income" -
BUT still need cash in checking or MM for paying bills, property taxes, ES-1040 taxes, etc
What tax bracket are you in?

BruinBones
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by BruinBones » Tue Jun 23, 2020 8:52 pm

I am fortunate enough to hold most of my cash with Navy Federal Credit Union:
1. NFCU Flagship checking (tiered 0.35 to 045 percent) to pay bills.
2. NFCU Money Market Savings (tiered 0.60 to 0.75 percent) for quick cash.
3. Synchrony Bank High Yield Savings (1.05 percent) for emergency fund.
4. NFCU CD’s x3 (3.44, 2.96, 2.23 percent, respectively) for medium term savings.
NFCU and brokerage settlement accounts are linked for easy access and transfer.

annu
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by annu » Tue Jun 23, 2020 11:47 pm

If it is not part of your emergency fund, I put mine into "mortgage account", guaranteed return of 3.25% :sharebeer

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ps56k
Posts: 886
Joined: Sat Mar 19, 2011 1:28 pm
Location: Chicago area

Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by ps56k » Sat Aug 01, 2020 11:53 am

anon_investor wrote:
Tue Jun 23, 2020 5:41 pm
ps56k wrote:
Tue Jun 23, 2020 4:20 pm
With the rates way down again, where or what is the thinking of holding cash.

Some of my current holding acct locations.... need to consolidate, but keep some for ongoing payments.

- Schwab Sweep from investment transactions .01%
- Chase checking .03%
- Ally MM .50%
- Ally Saving 1.10%
- Ally CD (ladder out 1 year) 1.25%
- Vang Intermediate Muni 1.42%
- Vang Long Term Muni 1.96%
- Vang Total Bond 1.40%
- Pimco Active - BOND - 1.93%

Thinking of migrating from the less than 1% accounts to our IT Muni and LT Muni accts - to lessen "ordinary income" -
BUT still need cash in checking or MM for paying bills, property taxes, ES-1040 taxes, etc
What tax bracket are you in?
We have been bumped up into the 24% bracket due to wife's teaching pension + Cap Gains + Ordinary divs + ....

SO... we have been shying away from anything that creates normal Ordinary Divs - vs Qual Divs.
Moving into intermediate and long term Muni Vanguard funds.
When any of the other ordinary cash investments mature, they get moved into the Muni funds.

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anon_investor
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by anon_investor » Sat Aug 01, 2020 12:12 pm

ps56k wrote:
Sat Aug 01, 2020 11:53 am
anon_investor wrote:
Tue Jun 23, 2020 5:41 pm
ps56k wrote:
Tue Jun 23, 2020 4:20 pm
With the rates way down again, where or what is the thinking of holding cash.

Some of my current holding acct locations.... need to consolidate, but keep some for ongoing payments.

- Schwab Sweep from investment transactions .01%
- Chase checking .03%
- Ally MM .50%
- Ally Saving 1.10%
- Ally CD (ladder out 1 year) 1.25%
- Vang Intermediate Muni 1.42%
- Vang Long Term Muni 1.96%
- Vang Total Bond 1.40%
- Pimco Active - BOND - 1.93%

Thinking of migrating from the less than 1% accounts to our IT Muni and LT Muni accts - to lessen "ordinary income" -
BUT still need cash in checking or MM for paying bills, property taxes, ES-1040 taxes, etc
What tax bracket are you in?
We have been bumped up into the 24% bracket due to wife's teaching pension + Cap Gains + Ordinary divs + ....

SO... we have been shying away from anything that creates normal Ordinary Divs - vs Qual Divs.
Moving into intermediate and long term Muni Vanguard funds.
When any of the other ordinary cash investments mature, they get moved into the Muni funds.
Consider maxing out Series I Savings Bonds first.

That is where I shifted some funds when interest rates started really falling in March/April. The rate is lower now than it was then, but still over 1% and tax deferred.

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ps56k
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Location: Chicago area

Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by ps56k » Wed Aug 12, 2020 10:27 am

anon_investor wrote:
Sat Aug 01, 2020 12:12 pm
Consider maxing out Series I Savings Bonds first.
That is where I shifted some funds when interest rates started really falling in March/April.
The rate is lower now than it was then, but still over 1% and tax deferred.
Looks like I-Bonds have an online max of $10k ?

https://www.treasurydirect.gov/indiv/re ... htm#myself

radiowave
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Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by radiowave » Wed Aug 12, 2020 11:06 am

Ally no-penalty CDs are as good a place as any these days. Wish I would have locked in that 2.75% 5 year CD last year - oh well.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

junetree
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Joined: Fri Jul 12, 2013 7:49 am

Re: Where to put cash - MM, Sav, CD, Sweep, Muni, Bond

Post by junetree » Wed Aug 12, 2020 11:08 am

At this point, if it's extra cash above what's needed for an emergency fund, we're paying down the mortgage.

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