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Place to stash GTH money
Old 07-09-2016, 02:35 PM   #1
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Place to stash GTH money

Looking for suggestions where I should stash my go-to-**** money. Its about a year's worth of spending plus some money for business development to start consulting. Call it $150k.

I don't foresee an immediate need for this money but the reason one has this sort of thing is in case that changes. Its not quite an emergency fund but certainly not something where I want a lot of volatility so it needs to be relatively low risk and liquid. Of course, anything resembling a return would be nice too.

Door #1 would be easy out CDs...but they generate taxable interest of which I am not a fan.

Door #2 is muni bonds...anyone have suggestions for good, low cost muni bond funds or ETFs? I'm in the slightly paranoid camp that says interest rates have to go up at SOME point so duration is a consideration.

Door #3... Open to suggestions.

Thanks for any insights you have to share.
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Old 07-09-2016, 03:09 PM   #2
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Taxable interest is better than no interest at all these days. Ally bank, ~1% checking or savings. FDIC insured up to $250 K.
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Old 07-09-2016, 04:57 PM   #3
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Taxable interest is better than no interest at all these days. Ally bank, ~1% checking or savings. FDIC insured up to $250 K.
Put it in a CD there at 2% (for a 5 year one), but you can cash out anytime after 6 months, and if you cash out earlier than 5 years, even after the penalty, you still end up better than 1% .
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Old 07-09-2016, 04:59 PM   #4
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I use high yield savings accounts first - Synchrony Bank yielding 1.05%. And then I have some more in longer term investments like 12 and 14/15 month CDs and a short term muni bond fund FSTFX.
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Old 07-09-2016, 05:16 PM   #5
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Originally Posted by krotoole View Post
Looking for suggestions where I should stash my go-to-**** money. Its about a year's worth of spending plus some money for business development to start consulting. Call it $150k.

I don't foresee an immediate need for this money but the reason one has this sort of thing is in case that changes. Its not quite an emergency fund but certainly not something where I want a lot of volatility so it needs to be relatively low risk and liquid. Of course, anything resembling a return would be nice too.

Door #1 would be easy out CDs...but they generate taxable interest of which I am not a fan.

Door #2 is muni bonds...anyone have suggestions for good, low cost muni bond funds or ETFs? I'm in the slightly paranoid camp that says interest rates have to go up at SOME point so duration is a consideration.

Door #3... Open to suggestions.

Thanks for any insights you have to share.
I use a short term muni bond fund. Pays a bit over 1% and share price is quite stable. Search on your brokerage web site and find one available commission free, that has a very stable share price and pays a tax free dividend you can live with.
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Old 07-09-2016, 08:07 PM   #6
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Thanks folks. All good suggestions!
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Old 07-09-2016, 08:14 PM   #7
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MUB yields 2%+ tax free. With a few more nads, you can get 4.5% tax free with HYD. I have them both in varying degrees. I too hate to pay needless taxes, but don't want my "cash" to go unrewarded.
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Old 07-09-2016, 11:21 PM   #8
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Put it in Silver futures and turn it from GTH money to "and the horse you rode in on too" money.
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Old 07-09-2016, 11:31 PM   #9
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And some like Beaver Cheese futures.
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Old 07-11-2016, 07:31 PM   #10
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I'm noodling the HYD muni idea..."high yield" and "low risk" don't usually go together...but hyd is interesting for my other money.

Silver Futures and Beaver Cheese...that could turn my GTH money to be "don't leave me!" pretty quick.
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