Hey guys, I am starting to accumulate a little extra cash thats just sitting in my checking account doing nothing for me and was wondering what would be the best thing for me to do with these reserves (approx 50K that I'm willing to invest)? I want something thats fairly liquid, short term (3mos-9mos type thing) and safe (like a CD or something). I am really a novice when it comes to investing and dont know too much and would appreciate any advice. Thanks.
http://www.emoneycentral.com/cgi-bin/display.cgi?db=db2&start=1 6 month cd's at these yields are a no-brainer... --m
3rd horse, 4th race Sunday afternoon at the Aquaduct. It's a lock, lay the 50 k down,, that is if you ain't yella.
Hi Steve! if you in PA you can open acc in beneficial saving bank. they have 2.5% APR on regular checking and 5% for 5 month CD https://www.beneficialsavings.com/RatesDepositProducts.asp i personally prefer local banks with branches, where you can walk in. you can also buy some corp. bonds, if you have IB account, but yields are not to shabby. around 5.5% for A+ and higher rated bonds.
Hi Steve, Just as a thought, you are young and could probably withstand some higher risk/better return investments at this point. 5% seems too conservative. Why not start doing some research into alternative investment vehicles? I'm sure you could do 15-30% if you do some homework. You may fund the attached info useful. Regards, Mike
If you want liquidity and access, there are a bunch of good rates to be had with some simple homework. CD's are good, but have to lock up and with rates going up, maybe not a great place to stash your cash. Think about breaking that money into segments. Maybe two chunks of 25K? (or whatever you feel comfortable with) There are some really good rates available through reputable online savings sites. You could easily link an online savings account to your checking account and freely transfer money back and forth. Many online sites don't require minimums or a lock up period and offer MUCH BETTER RATES than branch bank savings accounts. I personally use INGdirect (not a recommendation, just what I use and a place to start). Good place to put accessible cash that I don't want to commit to trading or lock up. Right now you should be able to find rates around 4.25% or so (have seen some around 4.5% with no lock). For another chunk, shop some CD rates. I wouldn't commit to anything longer than a 6 month rate right now as they are more likely to keep going up incrementally. That's what I come up with if you don't want to take on any market risk and have access. Good Luck and hope this helps a little.
ing offers less rates than many. go to bankrate. com. i have many mondy markets like capital one gmac and emmigrant direct. few money market rates have risen the last 2 rate hikes which i/m suprised by. gmac offers one of the highest money market rates
What is wrong with 3 month T Bills @4.85% held til maturity? I buy them Commission FREE through my broker on Mondays at Treasury Auction. PS: State TAX Exempt
Learn to make positional trades. You can play the currency market as well while doing this. US dollar going up buy American stocks, Canadian dollar going up buy Canadian stocks. You get the idea. I wouldn't settle for 5%.