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Protecting $100k
- Thread starter QHTCapital
- Start date
I respect your point (especially since it's your money).Quote from QHTCapital:
I respectfully disagree. 3.5% is not the highest risk-free rate attainable in the market. Municipal bonds have negligible risk and consistently yield 5% tax-free. That said, I do have a slightly higher appetite for risk (than an online savings account) but not 5% swings per day.
... in regards to your last post, just keep in mind that they're raising the rates to attract money, and if you get caught on the wrong side of any activity in the market place which raises short-term interest rates you're gonna take a gut check. :eek:
Since the money in the savings account is not tied up, if short term interest rates rise and he can get a better rate elsewhere, he can just move the money, get a higher rate, and avoid a gut check.
Quote from MandelbrotSet:
I respect your point (especially since it's your money).
... in regards to your last post, just keep in mind that they're raising the rates to attract money, and if you get caught on the wrong side of any activity in the market place which raises short-term interest rates you're gonna take a gut check. :eek:
Quote from VoodooMMI:
Since the money in the savings account is not tied up, if short term interest rates rise and he can get a better rate elsewhere, he can just move the money, get a higher rate, and avoid a gut check.
I'm pretty sure he was talking about Muni's, not the savings account.
Yes, most of them have minimal risk, if you hold them to maturity. If you need the money prior to that, they fluctuate in value, so you may have to take a loss that would at least partially offset the higher yields. Just depends on conditions at the time.
Quote from QHTCapital:
I currently have $100k in working capital & earnings set a aside from a business. It is earning a messly 3.5% in an online savings account. I'm looking for an ETF, ETN, REIT, fund, or another asset class that will have a higher yield without taking too much more risk. The money has to remain liquid in case it is needed in the business. Where is the best place to stash my working capital with little appetite for risk?
I f you want to truly 'protect' your money then the stock market isn't for you.
Obviously with more reward comes more risk.
Also, be VERY wary of any HYIP that promise 10-15% monthly or yearly returns. These are almost always scams.