Best way to protect your money

[godoftrading]

I currently have $100k in working capital & earnings set a aside from a business. It is earning a messly 3.5% in an online savings account. I'm looking for an ETF, ETN, REIT, fund, or another asset class that will have a higher yield without taking too much more risk. The money has to remain liquid in case it is needed in the business. Where is the best place to stash my working capital with little appetite for risk?

 

[haha]

I currently have $100k in working capital & earnings set a aside from a business. It is earning a messly 3.5% in an online savings account. I'm looking for an ETF, ETN, REIT, fund, or another asset class that will have a higher yield without taking too much more risk. The money has to remain liquid in case it is needed in the business. Where is the best place to stash my working capital with little appetite for risk?

Right where it is. You are doing fine.

Ha

 

[Rich_by_the_Bay]

I currently have $100k in working capital & earnings set a aside from a business. It is earning a messly 3.5% in an online savings account. I'm looking for an ETF, ETN, REIT, fund, or another asset class that will have a higher yield without taking too much more risk. The money has to remain liquid in case it is needed in the business. Where is the best place to stash my working capital with little appetite for risk?

If it really needs to be "liquid" over the next couple of years, you really can't expect to earn S&P rates without taking some risk of loss at a time when you need it.

A compromise might be a short term government bond fund. It might pay 4-4.5% if you're lucky and be almost as liquid as cash. Of course there is a small risk of capital loss in that, unlike a MMF.

Or maybe half in stocks and half in the MMF? At least you can get to much of the money, and reduce the risk of having to sell stocks low. But either way the bottom line is that higher yield requires higher risk most of the time.

 

[brewer12345]

Put half in beaver-cheese futures and put the other half on "red."

 

[crazy connie]

If you can lock it up a bit, cd's at some online banks, credit unions pay a good bit more. Check this site out Home | BankingMyWay.com . Perhaps you could live with and create a cd ladder?

 

[mickeyd]

Where is the best place to stash my working capital with little appetite for risk?

Working capital is generally thought of as money that you will be spending soon (within 6 months). If you stashed it in anything except a money market fund or a savings account (as you have) you would be exposing the money to risks that you may not be happy with. I would leave it where it is if you are happy with the bank, otherwise, I would consider the Prime MMF @ Vanguard.

 

[d]

Put half in beaver-cheese futures and put the other half on "red."

thought b3av3r-ch33se was verboten

 

[brewer12345]

thought b3av3r-ch33se was verboten

Shhh...

 

[W2R]

Working capital is generally thought of as money that you will be spending soon (within 6 months). If you stashed it in anything except a money market fund or a savings account (as you have) you would be exposing the money to risks that you may not be happy with. I would leave it where it is if you are happy with the bank, otherwise, I would consider the Prime MMF @ Vanguard.

Unfortunately while Vanguard's Prime MMF (VMMXX) was yielding well over 4% in February, it has sagged to only 2.23% right now. The OP said he is getting 3.5% at his bank. So, maybe he's better off just leaving it there.

 

[innova]

Put half in beaver-cheese futures and put the other half on "red."

PFFFF

/*spits out pop

Thanks a lot.

 

[FinanceDude]

Keep it where it is, even the 7-day put bond rates fell off a cliff lately.........

 

[megacorp-firee]

another vote for keeping it where it is.

high yield = high(er) risk
low yield = low(er) risk
the laws of gravity
... no one seems to have figured out how to change these (yet).

'... you don't tug at supermans cape, ...you don't p*ss into the wind ...'
Jim Croce

 

[Spanky]

It is earning a messly 3.5% in an online savings account.

That's a very good rate. What kind of rate are you looking for? What's is the estimated time frame of liquidity? If it's less than a year, just stay put.

 

[explanade]

Looks like the oil futures market may be tantalizing.

You have Goldman Sachs predict $150 oil a few weeks back and it jumps over $130.

Then T. Boone Pickens says it as well and oil goes up.

Then this past week, Morgan Stanley says $150 by July 4th and oil jumps over $11 in one day.

Hmm, wonder where their positions were...

 

[chadster1]

Looks like the oil futures market may be tantalizing.

You have Goldman Sachs predict $150 oil a few weeks back and it jumps over $130.

Then T. Boone Pickens says it as well and oil goes up.

Then this past week, Morgan Stanley says $150 by July 4th and oil jumps over $11 in one day.

Hmm, wonder where their positions were...

I want to short some oil. 90 days from now it will not be as high as it is now.

 

[mb]

I currently have $100k in working capital & earnings set a aside from a business. It is earning a messly 3.5% in an online savings account. I'm looking for an ETF, ETN, REIT, fund, or another asset class that will have a higher yield without taking too much more risk. The money has to remain liquid in case it is needed in the business. Where is the best place to stash my working capital with little appetite for risk?

I would think that the God of Trading would know the answers to these questions

 

[REWahoo]

I would think that the God of Trading would know the answers to these questions

http://www.early-retirement.org/forums/f44/whole-numbers-what-they-used-36181.html#post665656

 

[innova]

I want to short some oil. 90 days from now it will not be as high as it is now.

Markets can stay irrational longer than you can stay solvent.