Cash & short term investments?

[qwerty3656]

I've never really held much cash and with interest rates always so low, I've never really paid any attention to "getting the best rate" or managing my cash like an investment.

Now that I'm retired, I'm holding more cash. What is a good strategy for dealing with it? Like some kind of a CD ladder (like a bond ladder)? Are there banks known for better CD rates?

Here, for example, is an article about NASA Federal Credit Union

https://www.depositaccounts.com/banks/nasa-federal-credit-union/offers/

 

[mpeirce]

It also depends on how long you’re holding the cash. CD ladders are great if it’s a longer time period.

“High interest” savings/money market accounts are better if you are using the money “soon” even if the rates aren’t as good. They are much more flexible.

Some folks chase the very best rates. After a while it can get tiresome and getting a pretty good rate can be OK and a lot easier. I suppose it depends on how close to the edge your budgeting is and your personality.

 

[Koolau]

One of the blessings I give thanks for is having "enough" that I don't worry a lot about how much I "make" (or, lose, really) on cash. I keep a fair amount of cash available in checking which gives me flexibility in investing as well as the ability to fund charities or purchases as I wish.

My point is that my current Asset Allocation covers my needs. Cash is a loser, but is needed for living, BTDing, etc. I just don't worry too much about maximizing my results on the cash portion. Full disclosure: once in a while I still kick myself for not buying more I-bonds back in the day, but regrets are for fools. YMMV

 

[TheWizard]

In tenth year of retirement, I simply aim to keep around $10,000 in my checking account, replenished from income streams a few times per month.
That's all the cash I hold, no savings account or CDs.

Excess cash beyond that $10k gets transferred to my settlement fund and invested in stock index funds eventually...