09-01-2018, 02:23 AM
(This post was last modified: 09-01-2018, 02:25 AM by crimsonghost747.)
That question sounds strange but I have to ask since I quite frankly haven't figured out a good solution for myself yet.
The history: I make quite a lot of extra right now and I've been pretty evenly splitting the "leftover" between my investment account (mainly DGI stocks) and a cash account. The point of this cash account was to serve as a downpayment for an apartment/house or possibly as ammo in case there is a large pullback in the stock market.
Overtime the balance of the cash account became large, maybe a bit too large. Buying a house/apartment is still the dream but looks like it won't happen at least for a year or two. I was still quite happy holding this cash since I got a 1.75% interest rate on it. Everything was fine.
Until yesterday. I got an email from the bank saying that they are reducing the interest rate from 1.75% to 0.75%.
So. I got a decent amount of money that will be losing the majority of it's income generating potential in a month. Currency is euro so it's really hard to find any decent yielding savings accounts or bonds.
Thoughts so far:
-stop adding new money to cash account, invest all of the "extra" each month. But this is risky at the current valuations and doesn't remove the fact that I have a lot of cash that is losing value to inflation.
-find a safe and reliable cash account with a decent yield in a foreign currency and hedge it.
Any other options, no matter how far fetched, are welcome. I have a month to figure this out.
The history: I make quite a lot of extra right now and I've been pretty evenly splitting the "leftover" between my investment account (mainly DGI stocks) and a cash account. The point of this cash account was to serve as a downpayment for an apartment/house or possibly as ammo in case there is a large pullback in the stock market.
Overtime the balance of the cash account became large, maybe a bit too large. Buying a house/apartment is still the dream but looks like it won't happen at least for a year or two. I was still quite happy holding this cash since I got a 1.75% interest rate on it. Everything was fine.
Until yesterday. I got an email from the bank saying that they are reducing the interest rate from 1.75% to 0.75%.
So. I got a decent amount of money that will be losing the majority of it's income generating potential in a month. Currency is euro so it's really hard to find any decent yielding savings accounts or bonds.
Thoughts so far:
-stop adding new money to cash account, invest all of the "extra" each month. But this is risky at the current valuations and doesn't remove the fact that I have a lot of cash that is losing value to inflation.
-find a safe and reliable cash account with a decent yield in a foreign currency and hedge it.
Any other options, no matter how far fetched, are welcome. I have a month to figure this out.