Getting started - where to put cash portion of portfolio

[SarahG]

Can anyone give a few recommendations on where to put cash to get at least a decent return? Thanks.

[mathjak107]

there is nothing .  cash is basically going to be about 1% or less

[goodasgold]

Hi SarahG:

Welcome to the forum!

As for a place to store cash, you might try looking into I-Bonds. They are guaranteed to keep pace with inflation for 30 tax-deferred years, when they mature. This may not sound like a big advantage now when interest rates are at a record low, but more than a few of us expect inflation to come roaring back one of these days.

And you don't pay any state or local income tax when you cash them in. More details can be found via an Internet search, including ways to expand the annual limit on purchases.

So long,

Goodasgold

[dualstow]

Hey, at least inflation is nil.

http://www.usinflationcalculator.com/

[SarahG]

Yeah, I get it, the rates are abysmal. I'm just taking small steps in this process, so thought I'd start by moving some cash into something slightly less abysmal. Got this step. Thanks.

What do you recommend next for a newbie (after cash and gold)?

Thanks!

[koekebakker]

Just checked my current yields:
Cash: 1.2% online savingsaccount
LT-bonds: 1.5% YTM.  Gotta love QE.

Inflation in the Netherlands is around 1% so I guess it's not th at bad, lol.

[SarahG]

That's pretty "good" for online savings. I assume it is with a bank in NL?

[koekebakker]

Yeah it is. Almost any savings account here has a higher yield than even 10-year treasuries. Strange times!

[Xan]

I'm getting 1% at GE Capital Bank.

[MachineGhost]

Can anyone give a few recommendations on where to put cash to get at least a decent return? Thanks.

https://www.depositaccounts.com/savings/

Check CD's also.  I recommend a 5-year CD stack, i.e. five equal amount 5-year CD's that are breakable just in case you need the cash or rates go higher while you wait.

[Fred]

I put my cash into FSBAX on Fidelity (short term 1-3 years government bond fund recommended in Craig and MT's book for those willing to take a little more risk than treasury notes). But I'm thinking of putting it all in the best CD I can find. My parents did that with ALL their money and it worked out okay for them.

[sophie]

K.I.S.S.

Savings account at an online bank.  When you have enough to put some into "deep" cash, you've got several nice options:  US savings bonds, CDs, short term treasuries or T bills.  PP canonical choices would be limited to the savings bonds or Treasuries, but several people here make use of bank products.

[ochotona]

Ally Bank, 0.99%, it's their regular savings account. I have moved our checking over there, too.

[SarahG]

Ally Bank, 0.99%, it's their regular savings account. I have moved our checking over there, too.

Great. Thanks.

[SarahG]

Thanks for all the helpful tips! I have a good gauge on what I'll do for this portion of the PP. Now, I'll tackle the others.