Author Topic: Investing retained earnings  (Read 1154 times)

valcont

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Investing retained earnings
« on: July 22, 2018, 05:32:20 PM »
I own a C Corp business that has been accumulating cash which I won't need to reinvest for at least 2 years. I am interested in hearing from the business owners about their strategy to invest the excess capital. I am guessing that treasuries or laddered bond portfolio can work but has anyone attempted stock/index investing via company account ? My accountant wasn't much help and I am not sure how IRS looks at this investing activity especially the gains/losses. Going to be digging on that but any insights will be helpful.

Also any recommendations on the brokerage firm that handles company accounts? I called the Interactive Brokers and they only know how to open a 401K account in the company's name.


EricSchleien

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Re: Investing retained earnings
« Reply #1 on: July 22, 2018, 07:30:59 PM »
IB can handle business accounts that aren't 401ks. It's pretty easy to set up. Two of the accounts I manage under the IB Platform are business accounts - neither of them are 401k. Also if you aren't dealing with huge sums of money and are looking for short-term stuff, I'd recommend doing arbitrage. The yield will be higher than most bonds. I actually just opened up an account for a new client this week that's solely focused on arb as a means to have a liquid vehicle that can compound at higher returns than bonds or a savings account. I'd look into it.

gfp

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Re: Investing retained earnings
« Reply #2 on: July 23, 2018, 04:41:48 AM »
https://www.interactivebrokers.com/sb/en/main.php

No problem if you are in the USA at least.