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What to do with too much cash?

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What to do with too much cash?
fenders53 Offline
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#13
09-02-2018, 03:51 AM
2.6% for 19 months.  $1000 minimum.  And it is a US bank.
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Robandcindy2 Offline
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#14
10-14-2018, 08:12 AM
Sorry for the late reply but....

Short Term CD ladder (3, 6, 9, 12 month duration)(Yield 2.10, 2.25, 2.40, 2.55 as of today)

Or ETF's:

BIL
USFR
VGSH
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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rayray Offline
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#15
10-14-2018, 01:51 PM
What about several CD's that come due in different increments? If I had a large pile of cash waiting to be deployed for a home purchase that's what I'd do with it.
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fenders53 Offline
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#16
10-14-2018, 06:42 PM
That's what RobandCindy is suggesting when he said "ladder". Until we get closer to the end of FED increases it would be a little crazy to do it any other way with a substantial amount of cash. Seems to me there is a real good chance a quality CD will pay a full point higher in about a year, of very nearly so.
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rayray Offline
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#17
10-14-2018, 10:03 PM
oops lol....I was using my phone and somehow missed the CD advice!
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crimsonghost747 Offline
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#18
10-17-2018, 12:14 PM (This post was last modified: 10-17-2018, 12:18 PM by crimsonghost747.)
Well, here is where I am at.
The cash that I currently have, at least the large majority of it, stays put. Simply because I couldn't find any decent currency hedges and I don't want to be over exposed to the currency risk.

As for the monthly cash deposit that was previously going to this cash account, I made a plan to throw it into T-bills, CDs or corporate bonds. Whatever feels like the right move at the time of buying. One purchase every 3 months with a maturity of 1 year. So looks like October/January/April/July for both purchases and maturity dates.

This way I get an acceptable interest rate and the money will start to become available at regular intervals after 1 year. Funnily enough, the first set of T-bills will hit maturity around the same time as my current employment contract ends... and surprisingly the amount that I'm putting into these on a monthly basis is roughly the same amount that I imagine needing to live for a month. A massive coincidence or is somebody possibly planning on taking a year off? :p
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fenders53 Offline
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#19
10-17-2018, 06:48 PM (This post was last modified: 10-17-2018, 06:50 PM by fenders53.)
Sounds like a mini-retirement. Good for you if you can finance it properly. I did that for 3 years bit it ends real soon. Hopefully Home Depot is hiring Smile
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