best etf for cash?

Discussion of the Cash portion of the Permanent Portfolio

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Desert
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Re: best etf for cash?

Post by Desert » Sat Jun 27, 2015 4:53 pm

chesser wrote: from what I can see the current max rate is 1.5% for penfed cd's and you'd have to go out to 5 or 7 yrs for that

https://www.penfed.org/Certificates_Overview/#tabs-2
Yeah, PenFed sometimes offers higher rates toward the end of the year.  Right now the best rates available for a 5 year CD are around 2 percent:

https://www.depositaccounts.com/cd/5-year-cd-rates.html
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Desert
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Re: best etf for cash?

Post by Desert » Sat Jun 27, 2015 4:57 pm

Xan wrote: What scares me about any duration at all is lack of responsiveness.  If interest rates suddenly spike, and you have a 5 year CD, you have to wait 5 years before your cash starts responding.  (That can be mitigated with ladders, of course, but not solved.)  Also, CDs are certainly "deep cash", as anything you put there can't be used for emergency uses, for rebalancing, or for drawing down (if you're in that phase).

GE Capital still pays a 1%+ interest rate on their savings account:
https://www.gecapitalbank.com/savings-p ... vings.html
That seems like as good a place as any.  Especially since you can switch to something better if it comes along without having to wait for a CD to expire.
Yeah, savings accounts are a decent place for cash as well.  As Xan noted, 1%+ rates are available.  I use Discover Bank for our "reserve account" (an account we throw a bit of money in every month for known upcoming bills like property tax, insurance, etc.). 

https://www.depositaccounts.com/savings/
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economicsjunkie
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Re: best etf for cash?

Post by economicsjunkie » Mon Jun 29, 2015 2:11 pm

I have my cash portion in a Capital One 360 savings account at 0.75%. Is that an acceptable place for the cash portion of the PP?
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KevinW
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Re: best etf for cash?

Post by KevinW » Mon Jun 29, 2015 3:25 pm

The short answer: strictly speaking "no," because the only orthodox cash vehicle is T-bills or a T-bill-only money market fund; but many forum members seem comfortable with FDIC insured accounts because, barring a widespread bank run, they are very nearly as safe.
economicsjunkie
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Re: best etf for cash?

Post by economicsjunkie » Mon Jun 29, 2015 3:54 pm

KevinW wrote: The short answer: strictly speaking "no," because the only orthodox cash vehicle is T-bills or a T-bill-only money market fund; but many forum members seem comfortable with FDIC insured accounts because, barring a widespread bank run, they are very nearly as safe.
Ah ok got it, thanks.
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Re: best etf for cash?

Post by fishdrzig » Sun Jul 05, 2015 6:38 pm

I own BIL as my cash portion.  It is all in a tax advantaged IRA account, so in reality is not liquid.  My question is if I am using BIL as my CASH portion and my emergency fund, would it be better to have this in a taxable account for liquidity in case of an emergency or just keep it where it is?
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Re: best etf for cash?

Post by Pointedstick » Sun Jul 05, 2015 6:41 pm

If you're planning to use your PP cash as your emergency fund to avoid having to have a separate cash emergency fund--and you should--then the cash should be accessible.
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