Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Maximizing Short Term Yield
Old 02-17-2004, 05:23 PM   #1
Recycles dryer sheets
Join Date: Feb 2004
Posts: 123
Maximizing Short Term Yield

I am not yet retired, but have a 2-3 year horizon in my sights. *Recently, though a moderate windfall I received some unexpected cash. *I would like to park this cash in something for 6 to12 months while I can think about a best investment choice for the longer term and how to rebalance what I have. *CD's are my easy choice, but am wondering about higher paying parking lots. *Any help for now and also my process of reevaluating? *

"He who speaks of dryer sheets has not seen the clothes line." Al B. Tross
Roger_R 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 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!

Re: Maximazing Short Term Yield
Old 02-17-2004, 05:35 PM   #2
Thinks s/he gets paid by the post
wabmester's Avatar
Join Date: Dec 2003
Posts: 4,459
Re: Maximazing Short Term Yield

Short-term rates are getting loooow. I was going to suggest a Ford Money Market account, but their rate just dropped from 2.8% to 2.3%. Still better than most 1-yr CDs.

A popular place to park, and even a good long-term bet, is the Vanguard Short-Term Corporate fund. Currently yielding 2.89%, but you'll be subject to NAV fluxuations.

What I used to do for short-term parking was buy a zero-coupon bond. Rates are typically better than what you'd get for a typical short-term bond, but I haven't bought one in a couple years.

wabmester is offline   Reply With Quote
Re: Maximizing Short Term Yield
Old 02-17-2004, 06:47 PM   #3
Thinks s/he gets paid by the post
charlie's Avatar
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: Maximizing Short Term Yield

Vanguard's Short Term Corporate is a good choice
and very liquid. The duration is about 1.8 years so
even if short term rates go up, which many expect,
you would probably do better than parking in a
6 mo CD.


charlie is offline   Reply With Quote
Re: Maximizing Short Term Yield
Old 02-18-2004, 09:18 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Re: Maximizing Short Term Yield

Same here with the short term corporate account, thats my short term slush fund. I also have an account with ingdirect that pays 2% with no fees. There was a lengthy discussion on the short term corp fund with few if any dissenters that it should be safe for a cash fund alternative.

If you decide to go safer and open the ingdirect account, find someone here that already has one and have them refer you, then you'll both get a cash bonus.
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote

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

Similar Threads
Thread Thread Starter Forum Replies Last Post
Short Term vs. Intermd Term Bonds TromboneAl FIRE and Money 35 07-21-2006 07:58 AM
Corus Bank Short Term CDs on the move again MJ FIRE and Money 8 07-21-2005 04:41 PM
Ladder vs Short Term Bond Fund WilliamG FIRE and Money 10 03-12-2005 03:25 AM
The Scoop on High Yield Bonds Ted FIRE and Money 9 12-04-2003 12:03 PM
short term bond funds DFW_M5 FIRE and Money 4 09-30-2003 05:35 PM


All times are GMT -6. The time now is 01:20 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.