Weighted Average Rate on Cash, CD’s and Stable Value

[RetireAge50]

For fun, what is your current weighted average rate on your safe funds (MM, CD’s, & Stable Value Fund).

I’m starting to collect a bunch of this kind of stuff and my weighted average rate is currently 2.87%.

Bonus question. How much of your portfolio is in these things. Mine is currently a whopping 31%.

 

[pb4uski]

CDs are 3.13%, preferred stock portfolio is 5.75%, whole life policy is ~3.31%.... blended together they are 3.66% and are about 61% of my portfolio.

Another 36% is in cash and is 1.36% on average and is in high credit quality short-term bond funds like VWSUX and VSGDX.

All together ~2.81%... so you got me beat.

 

[jazz4cash]

Stable value, Cd's and MM accounts are 30% and earn ~3.2%.

I am currently funneling as much as possible into a 3.7% CD so maybe I can bump up to ~3.5%. In eight months my Penfed 5% Cd's mature and I expect the weighted average drop quite a bit as a result.

 

[jimbee]

My cash is returning 1.3% and it makes up less than 2% of my total monetary assets.

 

[calmloki]

Between Ally and Discover and CIT we are around 1.3 but probably better than 1.7, thanks to taking advantage of various bonus offers like Simple and 1st Republic and Cal CU which can offer about 5% over a 3-6 month period. GTE and Navy and Columbia credit union CDs are between 3 and 3.6. Our property contracts are all at 7% right now and we are going to fund a 10% property loan for 6 months with 2% fee. Very instructive to see that a loan like that can bring in 3-4 times what our CD or savings accounts do. Probably in the 3.9% range overall, but some may not consider property contracts or our loans "safe".

 

[pb4uski]

.... but some may not consider property contracts or our loans "safe".

Have you ever had to foreclose on a property contract?

 

[atmsmshr]

but some may not consider property contracts or our loans "safe".

Knew one couple in their 70's from church who invested in a commercial property loan in 2007. They wound up having to sell their house, and he picked up extra nickels by teaching tennis. Sad to see their economic downfall.

 

[ShokWaveRider]

100% and doin' just fine after having won the game.

 

[calmloki]

Have you ever had to foreclose on a property contract?

No, not on property contracts we've carried.
Now as part of our hard money lending on places we've foreclosed on one property, started several other foreclosures, paid a borrower to sign over the security property (cheaper than court), had a borrower declare bankruptcy and the judge adjust our interest rate, had a lending company we gave money to evaporate with our money, other stuff. You know, just like the kind of thing a feller goes through when they buy a CD.

 

[RetireAge50]

No, not on property contracts we've carried.

Now as part of our hard money lending on places we've foreclosed on one property, started several other foreclosures, paid a borrower to sign over the security property (cheaper than court), had a borrower declare bankruptcy and the judge adjust our interest rate, had a lending company we gave money to evaporate with our money, other stuff. You know, just like the kind of thing a feller goes through when they buy a CD.

Ok Calmloki can include property contract lending but nobody else can[emoji3]

 

[OldShooter]

For fun, what is your current weighted average rate on your safe funds (MM, CD’s, & Stable Value Fund).

I’m starting to collect a bunch of this kind of stuff and my weighted average rate is currently 2.87%.

Bonus question. How much of your portfolio is in these things. Mine is currently a whopping 31%.

To question #1: I don't know. We have some in SWFXX but 80+% of our fixed income side in TIPS. I don't keep track of yield; the TIPS are a strategic investment, not a tactical one.

To question #2, a negligible percentage. The fixed side, total, is probably 30-35% right now. I haven't calculated the AA for several months. Last time I looked it was 75/25.

 

[calmloki]

So leaving out personal homes, bonus amounts and hard money loans about 29% of our net worth is in cash, CDs, and property loans. Of that, about 17.5% is in savings making 1.3%, 62.5% is in CDs making about 3.4%, and 20% is in carried property contracts. The blended CD and savings make about 2.94% and the property contracts bring the blended rate up to about 3.74%. Except for the CDs and carried contracts there is a bunch of stirring around and shifting of cash from one account to another.

 

[LOL!]

I don't like fun, so I don't have any cash. But I have an old TIAA 403(b) with about 2.5% of the total portfolio in that TIAA Traditional Annuity which is like a stable value fund that is current paying 3% compound annual return. That means it pays slightly less than 3% in reality.

 

[foxfirev5]

2.7% and falling. Too much in VG mm funds. Maybe I should blow some dough to raise my average . ��

 

[atmsmshr]

………. Now as part of our hard money lending on places we've foreclosed on one property, started several other foreclosures, paid a borrower to sign over the security property (cheaper than court), had a borrower declare bankruptcy and the judge adjust our interest rate, had a lending company we gave money to evaporate with our money, other stuff. You know, just like the kind of thing a feller goes through when they buy a CD.

My risk meter does not even go this high! More power to calmloki for being able to tolerate this and make money - one of the ways that the real world local economy functions.

BTW calmloki - are you 'friends' with any big guys that go by the name Vinnie?

 

[IMATERP]

I’m just under 2.87%, as well. This accounts for 30% + of my portfolio. Unfortunately, I have a 5.75% GE Bond coming due in the next month or two. I miss “him” already.

I

 

[VanWinkle]

About 13% in cash with 25% of that at 2.07 % rewards checking, and 75% as a mortgage lender earning 3%. My current AA would be 50/37/13. I have not sold any equities other than to re-balance.

 

[mystang52]

To ease DW's liquidity concerns, we have 2 years' worth of CD's,with one maturing every month (that we roll over). So, currently I'm averaging about 2.2%. Right now we're about 20% cash.

 

[calmloki]

My risk meter does not even go this high! More power to calmloki for being able to tolerate this and make money - one of the ways that the real world local economy functions.

BTW calmloki - are you 'friends' with any big guys that go by the name Vinnie?

Actually we do know a big guy named Vinnie who used to be connected with a Chicago pizzeria. But he doesn't know we make loans. We've been doing hard money loans for over 15 years and the great majority of people want to do just what they agree to do. It profits them to do so. Sometimes things don't work out. Maybe our years of landlording have inured us to some stresses but believing that people aren't doing things to intentionally harm us is the big thing. We try not to take things personally and money is just money.