Author Topic: How to Invest $100k  (Read 2248 times)

bskptkl

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Re: How to Invest $100k
« Reply #20 on: October 03, 2018, 10:57:14 AM »
Open Capital One bank account for the $500 bonus https://www.doctorofcredit.com/capital-one-500-money-market-account-bonus/
Take money out after a week or so...
Move on to other bank account bonuses - that website has an exhaustive list.


Jurgis

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Re: How to Invest $100k
« Reply #21 on: October 03, 2018, 11:22:29 AM »
For cash:

Look at ICSH 3 month average duration and yielding 2.56%. VMMXX (Vanguard money market fund) is better than most savings and money market accounts offered by banks at 2.1%. SUB and MUB are good if you are looking for tax free income. VCSH has a 3.42% with an average duration of 2.8 yrs. Alternatively you can build a 4 year CD ladder on IB yielding 3.1% right now; this is the least liquid option, but has the highest risk adjusted return.

Do you have an opinion about ISTB and FLOT vs your choices?

FLOT may be superior to ICSH, I looked into it a while ago and ICSH was providing higher returns when ishares dropped the management fee but FLOT send to have closed the gap and has even less interest rate exposure.

VCSH has a better yield but lower credit quality vs ISTB. VCSH isn't a free lunch and would react more to a sharp market drop, 4% standard deviation vs 1.4%.

I think brokered CD ladders offer the best risk adjusted returns for individual investors. It is a market that isn't open to institutions. You get b rates on CDs issued by A to AA rated banks and FDIC insurance.

Thanks.
"Before you can be rich, you must be poor." - Nef Anyo

apparat

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Re: How to Invest $100k
« Reply #22 on: October 03, 2018, 02:35:21 PM »
@Gregmal Got it, that makes sense! Thanks for explaining.