What is Your Favorite "Safe" Investment : CDs, Online Savings, etc...

Discussion in 'Risk Management' started by zghorner, Sep 13, 2018.

  1. bln

    bln

    #31     Sep 17, 2018
  2. srinir

    srinir

    I won't call cash-secured puts in SPY as "Safe" investment.
     
    #32     Sep 17, 2018
  3. bln

    bln

    Statistically safe :D They are strikes -20% below current market. If the S&P 500 where to drop more than 20% during 3 months I will take delivery of the shares and sell them back at break-even on bounce.
     
    #33     Sep 17, 2018
  4. srinir

    srinir

    Then you have different definition of "Safe".

    "Safe" investments is needed when you absolutely need safety, not tanking when the market is dropping. What you described is similar to profile of Junk (High-yield) bonds (Term risk + Credit risk). No one calls junk bonds as "Safe" investments
     
    #34     Sep 17, 2018
  5. bln

    bln

    Yeah, that is true. "absolute safety" is a whole different thing. T-bonds, T-notes, T-bills, TIPS, etc. should not be seen as safe either as the US Government could theoretically go bankrupt.
     
    #35     Sep 17, 2018
  6. Sig

    Sig

    [cisatracurium QUOTE="bln, post: 4729396, member: 172250"]Yeah, that is true. "absolute safety" is a whole different thing. T-bonds, T-notes, T-bills, TIPS, etc. should not be seen as safe either as the US Government could theoretically go bankrupt.[/QUOTE]
    At which point you have bigger problems on your hands than the safety of you investments. And my prepper friends have the last laugh on me, although as I like to point out I do have a sailboat that can take me to 2/3 of the Earth's surface with no fuel in pretty self-contained fashion!
     
    #36     Sep 17, 2018
  7. srinir

    srinir

    I think you misunderstood when i said "absolutely need safety".

    When i used that term, I meant to have negative or atleast zero correlation with the market. Investors use "safe" investment to protect from vagaries from the market movements and not 100% correlated to market like short puts.
     
    #37     Sep 17, 2018
  8. Until some Somali pirates rape your family in front of you, then slice your throat and feed you to the fish.
     
    #38     Sep 17, 2018
    zghorner likes this.
  9. zghorner

    zghorner

    I just ended up putting my cash into my IB account. 1.4% idle interest and it is ready to go when I see an opportunity in the market. Thanks for all of the input everyone and by all means keep it going with suggestions.
     
    #39     Sep 18, 2018
  10. silver182

    silver182

    For many years now I have most of our families cash in CEF's (Closed end Funds) there are some very safe one's. Also some cash in Real estate. The CEF's pay consistently 7% or more. The share price does fluctuate but generally speaking you could cash out anytime and loose very little or gain some.
    All are monthly payer's you can DRIP dividends back into itself or whatever you want to do with the dividends. Examples of what I we have invested in: DNP, GLAD, PTY, these last three are high payer's so more market flux ..CLM, CRF, OXLC......

    CD's and treasures... pay little or nothing.

    If you live in say the Denver area you "could" have quadrupled your money in Real Estate in the last 5-7 years....mabe still can buy anything hold, fix, rent, whatever then sell market is booming...I have some rentals in Colorado.

    As for cash allocation in trading accounts...I borrow other people's money! Use your account value plus margin...to backup your option sales. I have discovered a way these trades are better than 95% winners...anyone can do it, the key is timing. The more resources (money) you have the more you can make...very little risk "if" you have the funds to cover...you've heard the saying "Money makes Money" it's true..
     
    Last edited: Sep 22, 2018
    #40     Sep 22, 2018