How are people managing their cash?

[Nell-e]

I have the ETF's:

 

ISTB (iShares Core 1-5 Year USD Bond ETF) with 2.7% yield

TLT (iShares 20+ Year Treasury Bond ETF) with 2.1% yield

and then a little IAU (Gold ETF)

 

Wondering what everyone else is doing?

[Guest cherzeca]

I dont want to be contentious, but that is not managing cash.  that is investing in fixed income, some short, some long duration.  to me managing cash is investing in t-bills, and there is not a big give up in yield given current yield curve

[thepupil]

I dont want to be contentious, but that is not managing cash.  that is investing in fixed income, some short, some long duration.  to me managing cash is investing in t-bills, and there is not a big give up in yield given current yield curve

 

+1

 

cash does not go up/down 17% with a 1% move in rates, like TLT does  :)

[Nell-e]

I dont want to be contentious, but that is not managing cash.  that is investing in fixed income, some short, some long duration.  to me managing cash is investing in t-bills, and there is not a big give up in yield given current yield curve

 

You're right.  I should have asked what ETF's are people buying for the fixed income portion of their portfolio?

 

I'll start a new thread.

 

[fareastwarriors]

I'm fully invested... What cash

[Gregmal]

Yea cash is trash. Manage your liquidity. Thats all. People spend years, if not longer, sitting on hoards of cash being scared of "the big one". Theyre better off just investing prudently within the confines of their own temperament.

[Jurgis]

Same answer as on the other thread minus ISTB: MINT, FLOT, BSV.

[james22]

Have you access to a Stable Value fund, Nell-e?

 

Something of a free lunch: pays intermediate-term interest with short-term risk.

 

Mine yields 2.3%.

[Nell-e]

Have you access to a Stable Value fund, Nell-e?

 

Something of a free lunch: pays intermediate-term interest with short-term risk.

 

Mine yields 2.3%.

 

@James22

 

I have high yield savings accounts that yield nowhere close to 2.3%

 

What's a Stable Value Fund?  And how does the risk profile compare with an ETF like TLT?  Thanks

 

[fareastwarriors]

Have you access to a Stable Value fund, Nell-e?

 

Something of a free lunch: pays intermediate-term interest with short-term risk.

 

Mine yields 2.3%.

 

@James22

 

I have high yield savings accounts that yield nowhere close to 2.3%

 

What's a Stable Value Fund?  And how does the risk profile compare with an ETF like TLT?  Thanks

 

 

 

https://www.investopedia.com/terms/s/stable-value-fund.asp

[Guest]

Have you access to a Stable Value fund, Nell-e?

 

Something of a free lunch: pays intermediate-term interest with short-term risk.

 

Mine yields 2.3%.

 

@James22

 

I have high yield savings accounts that yield nowhere close to 2.3%

 

What's a Stable Value Fund?  And how does the risk profile compare with an ETF like TLT?  Thanks

 

Stable value funds are usually only found in workplace plans. They're basically like bonds funds with an insurance wrapper. I would say they're significantly less risky than TLT.

 

Though they do have some risks:

 

https://www.reuters.com/article/chrysler-stablevaluefund/chrysler-stable-value-fund-loses-money-wsj-idUSN0331702520090403

[TwoCitiesCapital]

I've been rolling back and forth between intermediate treasury funds and money markets.

 

When yields were closer to 1.7% was rolling to intermediate. When the curve flattens I roll back to money market.

 

Easy to do in 401k/HSA type accounts where transaction costs are nil and I have access to the i-shares. It's picking up pennies on small 20-30 bps moves but it makes me feel better that I'm doing something to manage a close to 0-return position

 

 

[Ross812]

I use MINT in my investment accounts for cash.

 

In personal accounts I used to use only Ally and Chase. Now I've switched to SoFi and USB.

 

I like how SoFi has bundled savings/checking into a hybrid account paying 1.6% right now as opposed to sweeping money for yearly taxes and insurance etc. to a savings account at Ally. I am shaking my head a little thinking about the amount of effort I will go through to switch accounts to make an extra $250-$300 a year... 

[Nell-e]

Have you access to a Stable Value fund, Nell-e?

 

Something of a free lunch: pays intermediate-term interest with short-term risk.

 

Mine yields 2.3%.

 

@James22

 

I have high yield savings accounts that yield nowhere close to 2.3%

 

What's a Stable Value Fund?  And how does the risk profile compare with an ETF like TLT?  Thanks

 

Stable value funds are usually only found in workplace plans. They're basically like bonds funds with an insurance wrapper. I would say they're significantly less risky than TLT.

 

Though they do have some risks:

 

https://www.reuters.com/article/chrysler-stablevaluefund/chrysler-stable-value-fund-loses-money-wsj-idUSN0331702520090403

 

Thanks for clarifying @stahleyp

[Nell-e]

Same answer as on the other thread minus ISTB: MINT, FLOT, BSV.

 

Thanks @jurgis.  All very good recommendations.  I was trying to stay away from anything with corporate debt but I see MINT held steady even in 2009

 

[johnpane]

In my retirement account I'm using New York Life Guaranteed Interest Account (2.0%); otherwise MINT (1.8%), Amex Personal Savings (1.7%).

 

[Guest cherzeca]

Yea cash is trash. Manage your liquidity. Thats all. People spend years, if not longer, sitting on hoards of cash being scared of "the big one". Theyre better off just investing prudently within the confines of their own temperament.

 

cash is like love.  it means never having to say you are sorry