Gyroscopic Investing

One thing is certain: Goldman Sachs will be "playing with your money."

That is who they are. That is what they do.

See Craig Rowland's comments in Cash FAQ:

"Q: Why a Treasury Money Market Fund and not something else with better yield?

A: Because you are not looking to take risk with your cash. Treasury Money Market Funds that are properly run are one of the most liquid investments you can own. There are no FDIC limits to worry about, no bank credit worthiness to worry about, and you will always be paid barring some extremely catastrophic event in the country. Chasing yield with your cash means you are taking on more risk and those risks can show up when you least expect (or want) them to. "

Ally CD rates are declining now...

ochotona wrote: ↑Tue Jun 18, 2019 8:48 pm Ally CD rates are declining now...

It won’t last, but Vanguard’s treasury money market (fund #11) is still paying over 2.3%.

Ally "buckets" sound useful

https://www.ally.com/go/bank/savingstoo ... L400001540

ochotona wrote: ↑Wed Nov 20, 2019 9:05 pm Ally "buckets" sound useful

https://www.ally.com/go/bank/savingstoo ... L400001540

Cool. Seems like a fun way to allocate the right amount for bills and emergencies and see what’s left.

Ally online savings down to 1.60% now...

ochotona wrote: ↑Fri Dec 20, 2019 6:21 am Ally online savings down to 1.60% now...

One point higher than VUSXX/ Vanguard treasury money mkt

Original post in the thread, 2017

sophie wrote: ↑Thu Jun 22, 2017 7:23 am It's a CD...no, it's a savings account...or is it a floor wax!

https://www.ally.com/bank/no-penalty-cd/

Cliff Notes version: For a minimum balance of $25,000, you can now open a new savings-ish account with Ally yielding 1.50%. It is technically an 11 month CD with autorollover and with no early withdrawal fees. Your money is locked into the account for 6 days.
...

(2nd post is ochotona's memory of a 13% CD which made me weep)

If you're willing to lock up your money for a year, you can get a 2% CD rate (source: bankrate dot com).
Is anyone doing that?
I haven't. I have treasuries, some of it laddered. but I'm curious.

Nah. I got out of Ally and now use Fidelity for online banking instead. My "savings account" is FDLXX, and my "checking" is actually the same account's core fund which is either SPAXX or FZFXX depending on what mood I'm in. A much simpler way to accomplish the same thing.

I do wonder if anyone's chasing that 2% while it lasts, though. I know someone -- not a pp'er -- who is buying 5-year-CDs in anticipation of years of low rates.

dualstow wrote: ↑Thu Mar 05, 2020 9:38 am I do wonder if anyone's chasing that 2% while it lasts, though.

I did lock in some 3% 5-year CDs around a year ago with "deep cash" with this in mind. Even broke some CDs and re-purchased at higher rate when things hit 3%.

We've discussed relative risks of CDs vs treasuries elsewhere so hope to avoid getting back into that here, but given the way things have gone it's worked out in my favor.

You could buy a CD through Fidelity to lock in those rates. Not a bad thought! I'm thinking I'd rather keep my cash liquid though, for "dry powder". That's because so much of mine is locked up in savings bonds.

Same here. I don't have a lot of savings bonds, but I do want liquidity.

Better yet: if I get a chance to refinance the mortgage, I might also throw in my upcoming kitchen renovation and then take the cash I've saved up for it and add it to the PP. Now THAT would be dry powder!

Anyone know if the timing of the refi relative to the renovation matters?