Jump to content

Anyone have a good place to invest cash right now?


LongHaul
 Share

Recommended Posts

For cash that you don't need w/i 1 year and up to 10K/year: I savings bonds

they pay you the official inflation rate and are redeemable after 1 year (though you lose some 3 months interest if redeemed before 5 years). The interest is  taxable as income but deferred until redemption. these are basically enhanced cash/very low duration low risk fixed income

 

http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

 

For truly liquid, need it now cash: GE, Amex, Capital One and other online savigns accounts that pay you 0.75%  or more for FDIC insured money.

 

I would recommend a liquidity buffer of GE/Amex high yield savings accounts and then start to build a trove of i savings bonds. after 1 year they become liquid, inflation indexed, enhanced cash. over time your 100% of your emergency fund can be inflation indexed and tax deferred and is a direct obligation of the treasury rather than a bank's liability (though if we get to the point where FDIC is threatened the dollar probably won't mean much anyways and you'll want gold under the mattress)

Link to comment
Share on other sites

For cash that you don't need w/i 1 year and up to 10K/year: I savings bonds

they pay you the official inflation rate and are redeemable after 1 year (though you lose some 3 months interest if redeemed before 5 years). The interest is  taxable as income but deferred until redemption. these are basically enhanced cash/very low duration low risk fixed income

 

http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

 

For truly liquid, need it now cash: GE, Amex, Capital One and other online savigns accounts that pay you 0.75%  or more for FDIC insured money.

 

I would recommend a liquidity buffer of GE/Amex high yield savings accounts and then start to build a trove of i savings bonds. after 1 year they become liquid, inflation indexed, enhanced cash. over time your 100% of your emergency fund can be inflation indexed and tax deferred and is a direct obligation of the treasury rather than a bank's liability (though if we get to the point where FDIC is threatened the dollar probably won't mean much anyways and you'll want gold under the mattress)

 

 

+1 on the iBonds.

 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...