My retirement accounts are basically all I have now so are very important. I have decided I will be going to 100% cash in January as I do not trust this market and do not want to trade it. So my question is, where can I put this money (about $300k) where it will earn the best return with little or no risk?
Where to put cash in January
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You'll probably miss out more sitting it out than it correcting and still moving up. If you're about to retire that's different. You could do CD's. They get decent rates for longer term ones.
It's great to be proactive on this. If you don't know what to do yet then just go to cash and continue to do your research in the meantime. Utilities in the first quarter might be good. It all depends on your risk tolerance and how much you pay attention to the market(s). There will be a bull market somewhere in the new year especially since there is so much money on the sidelines.
Agree, the longer it is in cash the more it is devaluing due to inflation. I think putting it in longer term bonds are the only way. Its tough because even the property markets are over inflated so anywhere you look there isnt value for money atm
STIP ... TIPS Bond ETF
Liquid ... $8.6 Billion
Relatively safe ... 5% drawdown in March 2020
Decent yield in a low yield environment ... 3.6%
Low expense ratio ... 0.05%
Monthly dividends
Once interest rates start to rise, anything in bonds or some utilities may perform badly.
I just went to all cash this morning, but really feel that this market is in a melt-up.
My reason is we are closing on a new house in Jan and have some other things going on and I just don't need any distractions if the market pukes.
If the Jan CPI # is a new high, I think things could get ugly, quickly and biggly.
Edit: I did keep some warrants (2025)
My reason is we are closing on a new house in Jan and have some other things going on and I just don't need any distractions if the market pukes.
If the Jan CPI # is a new high, I think things could get ugly, quickly and biggly.
Edit: I did keep some warrants (2025)
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If you have some time, look into options. There are many conservative strategies that will allow you to participate in whatever upside the market offers while still protecting your downside. A bit harder to do in a retirement account, but one thing you could do is simply hold a collared SPY position. Easier to do that when interest rates are higher though.
Put a chunk into GUSD or USDC stablecoins if you can do that (8-10% APY right now).