Where to park brokerage cash?

[COcheesehead]

My problem is our Cash in our IRA's. Can't move that money in and out of HY Savings. This is money that should be invested in FI per our AA, but doing so at this time makes no sense.

Check out multi sector bond funds like PTIAX. Yields 4.34% currently. 5 star fund. Been in it for awhile. Nice and boring. Just what you want in a bond fund. Up 3.52% YTD.

 

[skipro33]

I have around $35,000 in checking account for emergencies. (Having lived through a total-loss wildland fire and can assure you that emergencies can happen and when they do, having immediate cash is paramount.)
I also have $90,000 in FIDELITY GOVERNMENT MONEY MARKET (SPAXX) that has YTD 0.26%, 1YR 0.9% and 3YR 1.29%. That's good enough for me for carry-through during these 'uncertain times' when I wouldn't want to touch my regular AA of 70/30 for my IRA.

BTW, today I am now officially at an all time high for my IRA's, surpassing the last all time high on Feb 19, 2020. Haven't bothered with re-balance, just been letting it ride. My total net worth is up 13% from a year ago.

 

[Rosedala]

Where did you get a 6% CD? I haven't seen one of those in 10 years.

Exactly!!! Just around then. But another one closer, though not so dramatic where I got 4.2% for my IRA 2 years ago and good for 3 more years. Also I got 2 or 3 other good interest accounts thanks to them which I don't recall how much as I don't have my records handy now.

In fact I just got their latest (daily at 12:05 am) where they found 2 credit unions one offering 2.38%:

There are two new blog posts on DepositAccounts:
Education First Federal Credit Union Offers Top 5-Year CD Rate
Deal Summary: CDs – 5-year (2.38% APY), 3-year (1.92% APY), 2-year (1.46% APY), 1-year (1.26% APY), $500 minimum deposit. Availability: Residents... Read More

Millbury National Bank Offers Kasasa Cash and Saver in the Northeast
Deal Summary: Kasasa Cash, 2.02% APY on qualifying balances up to $25k. Kasasa Saver, 1.00% APY on qualifying balances up to $250k. Availability:... Read More

(I'm surprised the links aren't lit here).

I especially love how deeply they examine the banks and credit unions. Also they keep us updated on what the authorities responsible for keeping interest down, are up to. I think people have a lot to gain by subscribing - totally free too! And, they don't sell anything either.

 

[2cheap2eat]

The 20% return on CLM is a joke. Almost 10% of it is return of capital, more than 6% is a long term capitol gain. Less than 2% is the actual dividend. It also is DOWN 8.5% over the last 52 weeks and sells at an almost 8% premium.
There are a whole lot better investments than this one.

Yeah, I checked out that chart for CLM, no thanks!

 

[2cheap2eat]

Marcus as of 8/4 now at 0.80 and Synchrony at 0.75 for "High" Yield Savings.

I was at Marcus, then Live Oak, just moved to Discover Bank who is still at 0.95%. Not great but higher than most (for now).

 

[aja8888]

Check out multi sector bond funds like PTIAX. Yields 4.34% currently. 5 star fund. Been in it for awhile. Nice and boring. Just what you want in a bond fund. Up 3.52% YTD.

Both funds look interesting. Thanks!

 

[Live Large]

Online Only Capital One

I currently have ours in Capital One's 360 MM/savings account. Gets 1%. Easy to transfer from this account to my checking account with my CU if needed. Usually takes 3 days to transfer in and out though.

+1 had me look back to see how long DW & I had the 360 online account- latest statement I saw 2013 was used as Travel expense savings. We both do auto deposits ~ (home) piling up cash ~ good place to park it for us. Travel again- one day. Also have C.S. (Charles Schwab) broker acct. may transfer out of MM at these suggestions or buy higher yield options thru trade. I don’t mind 50k of cash w/overall AA around 70/25/5. Guess we’re more aggressive but currently up with all the volatility. Best stick where ya comfy. Many here carry no Debt or very little pay off monthly. We have minimal debt ratio but DW still works (home) full-time. DW few yr younger likes job her job. Can pay off mortgage if we decide to go that direction later.
~ ER’d on paper at 51 last day at work was 49.9 so a modest pension balances w/DW income be fine when she pulls the plug. Anyway, lots of great suggestions.

 

[Live Large]

Lighter side...

I’m thinking of moving some of my brokerage cash into Tesla. The car, not the stock. Oh, this isn’t the blow that dough thread?

I did think cash was parked for spending just in case ~ U need or want to spend it.

Not looking for much “investment” return on ours use the weighted AA in market for that but interesting takes on the subject w/dividend funds

 

[Jeff6146]

I have about $50K in my brokerage account that is just sitting in cash. I had it invested in munis until they started tanking, and got out (I know, bad idea). This needs to be relatively "safe" money, but not as safe as money market. I was looking at TIPs, but it seems like everyone is expecting inflation and TIPs have gotten relatively expensive. Any suggestions?

IF I may,you should have left it in there. Stocks aren’t a get rich quick Scheme but they are a marathon that you have to be ready for. That’s coming straight from Dave Ramsey himself. He’s on Pandora, Youtube, and any other steaming service. I promise you he will tell you the same thing. Y’all need to listen to him ever so often. I’m working on my million now. I owe nothing. If y’all need money management do his program. I promise y’all he’s 100% on point. But ya should have left it. Ride that wave brother.