Short Term Cash Investment

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Topic Author
nickeld
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Short Term Cash Investment

Post 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
Harpoon1
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Re: Short Term Cash Investment

Post 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!
Jack FFR1846
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Re: Short Term Cash Investment

Post by Jack FFR1846 »

Ally savings account at 1% is as good as it gets.
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Toons
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Re: Short Term Cash Investment

Post by Toons »

Others might disagree,
As there is risk of principal loss,but
I would feel comfortable with
Vanguard Short Term Investment Grade.
:happy
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aj76er
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Re: Short Term Cash Investment

Post by aj76er »

I'm using Ally Savings @ 1%.
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Topic Author
nickeld
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Joined: Sat Jan 17, 2015 2:41 pm

Re: Short Term Cash Investment

Post 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
Topic Author
nickeld
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Re: Short Term Cash Investment

Post by nickeld »

Thanks everyone, confirmed my hunch
rbaldini
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Re: Short Term Cash Investment

Post 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.
Topic Author
nickeld
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Joined: Sat Jan 17, 2015 2:41 pm

Re: Short Term Cash Investment

Post 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
FishinGeek
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Joined: Tue Mar 29, 2016 5:53 am

Re: Short Term Cash Investment

Post by FishinGeek »

I am using Goldman Sachs Bank (GS Bank) for parking cash, online savings account 1.05%.
jfave33
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Re: Short Term Cash Investment

Post 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.
Harpoon1
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Re: Short Term Cash Investment

Post 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.
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AllieTB1323
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Re: Short Term Cash Investment

Post 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".
Dandy
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Re: Short Term Cash Investment

Post 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.
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sperry8
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Re: Short Term Cash Investment

Post 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.
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Topic Author
nickeld
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Joined: Sat Jan 17, 2015 2:41 pm

Re: Short Term Cash Investment

Post 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
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