Author Topic: Where Do You Park Your Cash?  (Read 3770 times)

stahleyp

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Re: Where Do You Park Your Cash?
« Reply #10 on: January 15, 2019, 06:08:24 AM »
VMMXX  2.49%

Or for the big shots - VMRXX
Paul


Spekulatius

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Re: Where Do You Park Your Cash?
« Reply #11 on: January 16, 2019, 03:22:10 PM »
I am now carrying a pretty sizable cash balance. Where do investors park their cash? I am in Canada and have both CAN$ and US$ accounts.

I am going to leave most of my cash in US$. I have very little confidence in the Canadian economy outperforming the US over the next 3-5 years. I also think Canada is in a housing bubble; if it pops i would expect the CAN$ to weaken (versus the US$).

One benefit of central banks raising rates is investors are now able to earn a small return on cash. RBC has Investment Savings Accounts and currently pays 1.6% CAN$ account and 1.7% US$ account. The rates are for their self serve customers; they pay slighly more in other accounts for customers that pay more in fees. The CAN$ account is CDIC covered; US$ account is not. I think these are technically mutual funds; i can access the funds same day (although they technically clear over night).

So, looks like you are serious about raising cash. Nothing wrong with this as I have been doing likewise. I try to have 10-20% cash available to take advantage of correction and I am getting closer to 20% now.
To be a realist, one has to believe in miracles.

alpha23

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Re: Where Do You Park Your Cash?
« Reply #12 on: January 16, 2019, 03:38:18 PM »
PurePoint Financial savings account 2.35% - https://www.purepoint.com/online-banking/savings-account/high-yield

Viking

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Re: Where Do You Park Your Cash?
« Reply #13 on: January 16, 2019, 04:39:24 PM »
I am now carrying a pretty sizable cash balance. Where do investors park their cash? I am in Canada and have both CAN$ and US$ accounts.

I am going to leave most of my cash in US$. I have very little confidence in the Canadian economy outperforming the US over the next 3-5 years. I also think Canada is in a housing bubble; if it pops i would expect the CAN$ to weaken (versus the US$).

One benefit of central banks raising rates is investors are now able to earn a small return on cash. RBC has Investment Savings Accounts and currently pays 1.6% CAN$ account and 1.7% US$ account. The rates are for their self serve customers; they pay slighly more in other accounts for customers that pay more in fees. The CAN$ account is CDIC covered; US$ account is not. I think these are technically mutual funds; i can access the funds same day (although they technically clear over night).

So, looks like you are serious about raising cash. Nothing wrong with this as I have been doing likewise. I try to have 10-20% cash available to take advantage of correction and I am getting closer to 20% now.

Spekulatius, my two key learnings from 2018 was:
1.) i need higher cash balances (to weather and be able to take advantage of volatility)
2.) to be more diversified moving forward
I expect volatility (like we have seen in 2018) to be a key them for the next few years :-)

Cardboard

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Re: Where Do You Park Your Cash?
« Reply #14 on: January 17, 2019, 07:43:01 AM »
Got a question for you Viking. Have you not held cash or a significant portion of your portfolio into cash since the 2008-2009 crisis or even prior?

If one goes back through your posts, you have always been cautious not to say bearish.

Cardboard

DocSnowball

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Re: Where Do You Park Your Cash?
« Reply #15 on: January 17, 2019, 01:29:17 PM »
VMMXX  2.49%

Or for the big shots - VMRXX

Thank you!

John Hjorth

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Re: Where Do You Park Your Cash?
« Reply #16 on: January 19, 2019, 02:32:25 PM »
Cardboard,

I'm not Viking, and naturally Viking can reply for himself. alwaysinvert actually asked Viking a similar question some time ago. You find the exchange between alwaysinvert and Viking here.
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muscleman

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Re: Where Do You Park Your Cash?
« Reply #17 on: January 19, 2019, 07:53:07 PM »
IBKR pays 1.9% interest on cash. Is that not good enough?
If you are with Fido, give them a call to put your cash into their government obligations money market sweep vehicle. That pays nearly 2%.
This would be far better than some mutual fund or even a savings account in another institution. Cash sweep vehicle means you need no extra operations, and 100% of your idle cash is earning interest all the time.

DocSnowball

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Re: Where Do You Park Your Cash?
« Reply #18 on: January 22, 2019, 09:56:35 AM »
VMMXX  2.49%

Or for the big shots - VMRXX

I ended up using this one: VUSXX - Vanguard Treasury Money Market Fund (2.31% 7 day SEC yield, 50k minimum)
https://investor.vanguard.com/mutual-funds/profile/overview/vusxx

sarganaga

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Re: Where Do You Park Your Cash?
« Reply #19 on: January 28, 2019, 03:05:41 PM »
mostly 6 month to 1 year t bills (about 70% of cash totals), the other 30% in BSV (Vanguard Short Term Bond etf), which is mostly treasury securities with a few better quality corporates thrown in. It has a 2.65 duration which actually gives it a short/intermediate bond exposure. Together, they are a pretty good & safe place to park cash.