I have a sudden need to place a modest amount of cash into something that is either no risk or very low risk. This is for a family member who is close to retirement. I know this is a trader's den, but I assume that some of you traders "bank" some of your profits into something w/ a substantially smaller risk factor. For this reason, I thought I would poke around and see what vehicles you folks use and why. Investment grade bonds? Money markets? CDs? an ING savings account?
if the person is retire or about to, annuities may be a decent option. P.S. choose the company with care.
I have a related question. Supposed you are managing an account worth a sizeable amount (several mil and up) and during some period it appears that you should sit on your hands, where do you put the money in the interim? Do some of the direct access brokers pay interest on the portion of the account that's in cash? (although that's probably the last resort). I don't mean something long term, just a place to park the cash for anywhere from one day to about a week max. Thanks.
Is that a reasonably attractive option given that one woud incur additional costs if funds were to be moved back and forth if other venues are pursued? I'm assuming the brokers are paying somewhere around 1 or 2% annualized
I'm not an annuity expert, and not saying its not a good investment, but when I was in the brokerage business getting someone in an annuity was a great deal. For the guy selling it.