Yield on Cash

Discussion in 'Stocks' started by TheoHornsby, Jun 13, 2009.

  1. Does anyone have any suggestions for using excess cash to generate a better yield than 2% in a money market account? I'm not looking for stock ideas per se since I have that covered in my brokerage account.

    Is there anything that offers something better without having to go out 10-15 years for a lousy bond yield? I'm familiar with covered calls to generate income, etc. but I don't want a lot more add'l equity exposure unless it's something relatively low risk... I know, risk and reward go hand in hand.

    IOW, don't like MM rates. Don't like Muni yields. Don't want a lot of directional risk. Am I fantasizing? :)
  2. pspr


  3. I wouldn't lock any money up for 5 yrs now. Inflation is going to eat up any extra gains you get from those paltry yields.

    Keep your money in very short term CD's (less than 1 year), money market accounts, or TIPS.

    You can buy I-bonds here-