Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Cash
Old 02-16-2013, 05:35 AM   #1
Dryer sheet wannabe
burkey's Avatar
 
Join Date: Mar 2012
Location: Roswell
Posts: 13
Cash

I am retiring at age 57 in 12 days. Have a bit of cash on hand and even with financial help have no idea where to invest. Lucky to have steady stream of pension, future annuity, 401K, but feel like I should be doing something with some of the cash. Have that fear of 2008 all over again. Dislike getting no growth out of cash on hand. Any ideas?
__________________

__________________
burkey is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-16-2013, 06:43 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,470
It depends. How soon will you need the cash and are you willing to take any risks with it?

Google cash at the top pf the page and you'll find lots of threads addressing the subject.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 02-16-2013, 06:52 AM   #3
Full time employment: Posting here.
urn2bfree's Avatar
 
Join Date: Feb 2011
Posts: 711
The highest liquid cash vehicles are credit unions and online banks and they are around 1%. A ladder of CD might get you a bit more from the longer Cd's but at reduced liquidity without penalty for early withdrawal. Both will generate taxable interest at marginal rates, but that is the only growth.
If you truly have dependable streams of cost of living adjusted guaranteed income to cover your expenses and then some more for emergencies, you don't need to have too large a cash liquid position which would suggest you put some of that cash to work targeted to your appropriate asset allocation. Dollar cost average or value cost average in. At age 57 you have a long time to make your money work.
__________________
urn2bfree is offline   Reply With Quote
Old 02-16-2013, 08:17 AM   #4
Recycles dryer sheets
nvestysly's Avatar
 
Join Date: Feb 2007
Posts: 417
Give me your cash and I'll guarantee you 2%! That's way better than any bank! No my name is not Bernie.

On a more serious note... As mentioned above - what do you want to do with the cash - is it short term, long term? Do you need any of it to live your life or can it simply grow and grow? Most of us need some amout of cash for the proverbial rainy day.

DW and I put money in I-Bonds every week. That's our cash. It's illiquid for 1 year. After that you can tell them to send your money and it shows up in your bank account the next business day. We started doing this several years ago. Now we have quite a cushion of liquid cash (been there longer than 1 year) so the 1 year illiquid provision doesn't concern us. I think you can even get your money back within 1 year you simply lose the interest. Look at www.treasurydirect.gov to learn more about idividual investors saving money in I-Bonds. Yes there are lots of pro & con discussions about U.S. Government instruments but it works for us.

on edit: I just looked at my account and the interest rate for the I-Bonds purchased recently is 1.76%. This changes based on the level of inflation - that's why it's called an I-Bond. Looking back through my history I have several that are paying upwards of 4%. Periodically I go back and cash-out the I-Bonds that have a really low interest rate.
__________________
Dreamin' of Streamin'
FIRE'd at 52 on 7/8/11
nvestysly is offline   Reply With Quote
Old 02-16-2013, 08:36 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,442
For CD's, Penfed has competitive rates. See below. For better returns you will have to take on more risk. Some people like the Vanguard Wellesley balanced fund. It's by no means a cash substitute though. Maintains a 40/60 stock/bond mix. But a pretty steady fund.

https://www.penfed.org/Money-Market-...icker-10312012
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 02-16-2013, 08:39 AM   #6
Thinks s/he gets paid by the post
Tadpole's Avatar
 
Join Date: Jul 2004
Posts: 1,174
Something like this?
RPHYX RiverPark Short Term High Yield Retail Fund RPHYX Quote Price News
__________________
Tadpole is offline   Reply With Quote
Old 02-16-2013, 09:45 AM   #7
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,982
Quote:
Originally Posted by Tadpole View Post
+1 don't be fooled by the high yield reference as the way this fund is managed makes it fairly low risk.
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Old 02-16-2013, 11:14 AM   #8
Thinks s/he gets paid by the post
photoguy's Avatar
 
Join Date: Jun 2010
Posts: 2,301
Quote:
Originally Posted by DFW_M5 View Post
+1 don't be fooled by the high yield reference as the way this fund is managed makes it fairly low risk.
Can you clarify why? when I look at it on morningstar/yahoo finance it's basically a junk bond fund (they didn't list duration but the description says up to 3 years).
__________________
photoguy is offline   Reply With Quote
Old 02-16-2013, 11:51 AM   #9
Thinks s/he gets paid by the post
Tadpole's Avatar
 
Join Date: Jul 2004
Posts: 1,174
photoguy, Here is David Snowball's write up. He says that he uses it as his "money market" type fund:
RiverPark Short Term High Yield Fund (RPHYX) - July 2011, updated October 2012 - Mutual Fund Observer
__________________
Tadpole is offline   Reply With Quote
Old 02-16-2013, 12:19 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 5,900
We are parking some need-it-eventually funds in a tax-free municipal bond fund. Naturally there is risk of price fluctuation, but it's typically a shallower range than other mutual funds. Meanwhile we are getting income free of state and Federal tax.

Amethyst
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success to be able to spend your life in your own way. Christopher Morley.
Amethyst is offline   Reply With Quote
Old 02-16-2013, 12:27 PM   #11
Full time employment: Posting here.
SumDay's Avatar
 
Join Date: Aug 2012
Posts: 799
I just put our cash in an Ally savings account w/ .95% interest. Not great, but better than zero.
__________________
SumDay is offline   Reply With Quote
Old 02-16-2013, 12:44 PM   #12
Thinks s/he gets paid by the post
photoguy's Avatar
 
Join Date: Jun 2010
Posts: 2,301
Quote:
Originally Posted by Tadpole View Post
photoguy, Here is David Snowball's write up. He says that he uses it as his "money market" type fund:
RiverPark Short Term High Yield Fund (RPHYX) - July 2011, updated October 2012 - Mutual Fund Observer
Thanks for the link. Looks like it's really an ultra-short fund. This is something else for me to check out.
__________________
photoguy is offline   Reply With Quote
Old 02-18-2013, 10:30 AM   #13
Thinks s/he gets paid by the post
kyounge1956's Avatar
 
Join Date: Sep 2008
Posts: 2,171
Quote:
Originally Posted by burkey View Post
I am retiring at age 57 in 12 days. Have a bit of cash on hand and even with financial help have no idea where to invest. Lucky to have steady stream of pension, future annuity, 401K, but feel like I should be doing something with some of the cash. Have that fear of 2008 all over again. Dislike getting no growth out of cash on hand. Any ideas?
Is a Stable Value Fund available through your 401K plan? If so, that's another alternative you might want to look at. These generally pay a bit more than CDs or other cash vehicles. Whether it's a good fit for you depends upon (among other things) how soon you might need to withdraw the cash, how much is in your 401K vs the amount of cash you want to invest, and how much the Stable Value Fund is paying compared to your other options for investing this cash.
__________________
kyounge1956 is offline   Reply With Quote
Old 02-18-2013, 10:32 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,979
Quote:
Originally Posted by SumDay View Post
I just put our cash in an Ally savings account w/ .95% interest. Not great, but better than zero.
+1. We bought iBonds to the annual limit, rest at Ally savings.

But it sounds like the OP may be asking for another asset class to invest in, not where best to keep cash.
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 11:55 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.