where to park cash? (by Triston [IL]) Oct 28, 2018 5:19 AM|
where to park cash? (by myob [GA]) Oct 28, 2018 5:26 AM
where to park cash? (by Robert J [CA]) Oct 28, 2018 5:34 AM
where to park cash? (by Homer [TX]) Oct 28, 2018 6:57 AM
where to park cash? (by elliot [RI]) Oct 28, 2018 7:03 AM
where to park cash? (by AllyM [NJ]) Oct 28, 2018 7:28 AM
where to park cash? (by Kurt [MI]) Oct 28, 2018 7:30 AM
where to park cash? (by myob [GA]) Oct 28, 2018 8:13 AM
where to park cash? (by Oregon Woodsmoke [ID]) Oct 28, 2018 8:50 AM
where to park cash? (by fred [CA]) Oct 28, 2018 8:53 AM
where to park cash? (by JB [OR]) Oct 28, 2018 9:00 AM
where to park cash? (by plenty [MO]) Oct 28, 2018 11:07 AM
where to park cash? (by Moshe [CA]) Oct 28, 2018 11:48 AM
where to park cash? (by Wilma [PA]) Oct 28, 2018 12:08 PM
where to park cash? (by Cjo’h [CT]) Oct 28, 2018 1:34 PM
where to park cash? (by myob [GA]) Oct 28, 2018 6:03 PM
where to park cash? (by Triston [IL]) Oct 28, 2018 7:16 PM
where to park cash? (by S i d [MO]) Oct 29, 2018 5:16 AM
where to park cash? (by Triston [IL]) Oct 29, 2018 6:00 AM
where to park cash? (by Nicole [PA]) Oct 29, 2018 6:32 AM
where to park cash? (by RichE [IL]) Oct 29, 2018 6:58 AM
where to park cash? (by Moshe [CA]) Oct 29, 2018 9:22 AM
where to park cash? (by Chris [CT]) Oct 29, 2018 9:26 AM
where to park cash? (by Livethedream [AZ]) Oct 29, 2018 12:15 PM
where to park cash? (by Livethedream [AZ]) Oct 29, 2018 12:20 PM
where to park cash? (by Opinionated [NC]) Oct 29, 2018 5:08 PM
where to park cash? (by Radar [IN]) Oct 29, 2018 6:23 PM
where to park cash? (by Lynda [TX]) Oct 30, 2018 5:32 PM
where to park cash? (by Triston [IL]) Oct 30, 2018 6:45 PM
where to park cash? (by Terri [OH]) Nov 1, 2018 3:14 AM
where to park cash? (by Pmh [TX]) Nov 1, 2018 1:27 PM
where to park cash? (by Triston [IL]) Posted on: Oct 28, 2018 5:19 AM
I wonder where we (landlords) think is the best place to park our dry powder (cash) at the current situation. You guys probably have heard about the gloomy predictions about the overdue recession is coming. I believe in diversification when it comes to wealth preservation. Below are the assets that I park my cash (or inveset). However I'm not sure whether they're a good place to add more:
1. Regular bank saving account. This option would be risky when bank holiday happens after the economic collapse.
2. 401K. This option only allow a tiny sum of cash to be parked each year.
3. Stock market. It's so overvalue. I'm waiting for the bubble to pop and buy it after the crash.
4. Real estate. Normally this is my most favorite option (that's why I'm here, right? :-) However it's the most illiquid place to park money. I also believe in the real estate cycle. The market has been up since it bottomed in 2010. It's near peak now. I would buy after the crash.
5. Gold/silver. This is a great hedge against inflation. I have enough of it.
6. Cryptocurrency. High reward but also very risky. I put 1% of my assets there and don't want to add more.
7. Put it back to your business. This should be one of the best options. I would love to put it back to my business to hasten growth. However my business can only grow at a limited rate. It cannot utilize all the cash.
Where else do you think would be a good place to park cash?Please share your opinions or inputs.
where to park cash? (by myob [GA]) Posted on: Oct 28, 2018 5:26 AM
I would put cash into US postal money orders. They never expire are handy and in different denominations. Purchased in under 3K groups so as to not have the post office people have to report you.
IF I were to do it that's what I would do. --99.103.xxx.xxx
where to park cash? (by Robert J [CA]) Posted on: Oct 28, 2018 5:34 AM
Online Money Market Account, FDIC Insured to $250,000, requiring a minimum balance and pays between 1.85% and 3% interest. To get back funds you simply initiate a transfer to your local back account taking around 3 days to process and clear. --47.156.xx.xx
where to park cash? (by Homer [TX]) Posted on: Oct 28, 2018 6:57 AM
Mysavingsdirect is paying 2.25 on savings. Cap one 360 is paying 2.5 on a 12 month cd. Us i bonds is currently paying 2.48, market is over valued but should start small positions. Gold and silver is great for adding monthly. Real estate has provided me the means for all of this, but it’s currently over valued, I don’t care if I ever buy anymore, I already have plenty, so I am fine waiting for the next downturn. --75.141.xxx.xxx
where to park cash? (by elliot [RI]) Posted on: Oct 28, 2018 7:03 AM
It sounds like you are doing really good.. Probably time to give some or all of them away to accumulate your treasure somewhere else..
I am debating if I should pay down with the money now or after it is inflated/devalued. If you don't have any debt, then, really, do some charitable contribution, that will enrich your life as much as cash do --71.232.xxx.xxx
where to park cash? (by AllyM [NJ]) Posted on: Oct 28, 2018 7:28 AM
Park cash in the bank or in a metal box in the closet. If you want to increase it buy something with it you can sell for more on Ebay. There will only be a crash if the D party gets in and starts tinkering with the economy again with tax increases for business. The D party caused the problem in 2008 by giving 200K mortgages to first time home buyers with poor credit and then not allowing them to sell for five years if they got in trouble. The buyers were evicted and a huge number of homes went back to the banks. --73.178.xxx.xx
where to park cash? (by Kurt [MI]) Posted on: Oct 28, 2018 7:30 AM
Money market is a very convenient way to do it. My money market fund (not account) yields 2.23%
I've considered buying a short-term treasury fund which is 2.79%, but not an enormous difference. --107.5.xxx.xx
where to park cash? (by myob [GA]) Posted on: Oct 28, 2018 8:13 AM
I love that the lenders GAVE loans out like candy. How else could we have accumulated all these houses? Same with VA foreclosures (which was our primary investment vehicle) nothing down -- no skin in the game.
The main problem with cash and parking it-- if you turn it over to anyone-- well it's not yours any more. You ALL have heard horror story's about the gov't closing your acct's and seizing acct's. You want cash then no bank, no investing (yea at 1.25%) you gotta have liquid funds. You do need something that needs your signature. US postal money orders have no expiration date as do other types of funds. As you need infusion you just deposit the M.O.'s
NOT that I do that.
Elliot-- I'm still laughing-- do some good??? I spend every penny every month on employees pay. --99.103.xxx.xxx
where to park cash? (by Oregon Woodsmoke [ID]) Posted on: Oct 28, 2018 8:50 AM
It's in a money market account. I've got one more property to 1031 and it won't bring enough to buy a decent replacement so some of my cash will be going there. --174.216.xx.xxx
where to park cash? (by fred [CA]) Posted on: Oct 28, 2018 8:53 AM
What, you guys don't have mattresses at home? --99.59.x.xxx
where to park cash? (by JB [OR]) Posted on: Oct 28, 2018 9:00 AM
If eligible (you have earned income) I would be funding my IRA and 401k to the max each year.
You mention cash and being liquid, so I'm putting it in a high-yield bank savings account (online banks yield higher rates) or CD or even a money market fund.
The stock market has fallen into correction mode over the last two to three weeks. It might turn out to be a good time to buy in if you don't need some of your money in liquid accounts. Under the current president I'm not seeing a recession looming. But the Fed (Federal Reserve Board) keeps increasing interest rates and it is putting a lot of pressure on the markets.
Housing in neither liquid nor inexpensive and I would not even try to "park" cash in it.
You would probably get better answers if you mentioned your specific goals for that cash. When would you want it available and for what ultimately? --24.20.xxx.xxx
where to park cash? (by plenty [MO]) Posted on: Oct 28, 2018 11:07 AM
I can send you my account number. Lol. --99.203.xx.xxx
where to park cash? (by Moshe [CA]) Posted on: Oct 28, 2018 11:48 AM
If you are so certain that the stock market is overvalued and the bubble is going to pop, then why don't you use bonds as your parking lot?
where to park cash? (by Wilma [PA]) Posted on: Oct 28, 2018 12:08 PM
FDIC insured account - online banks like Ally work well; but there is a couple of day delay in getting funds.
If you need immediate service, set up a share account with your local credit union. You can usually take out funds the same day, up to a maximum amount that varies. --71.175.xxx.xxx
where to park cash? (by Cjo’h [CT]) Posted on: Oct 28, 2018 1:34 PM
Triston .JB has a bridge in Oregon that he’s been trying to get rid of for some time , maybe he’d cut you a deal or if not,I’ll open a special account in a New Haven Bank,just for you. And dont underestimatie Miss Ally’s olde tin can. Cracker Box. Charlie..........::::::........... ::::::::............................... --32.214.xxx.xx
where to park cash? (by myob [GA]) Posted on: Oct 28, 2018 6:03 PM
Cjo'h CT OT people have been asking where you have been so make a seperate post for those looking for you to see your back. Thanks --99.103.xxx.xxx
where to park cash? (by Triston [IL]) Posted on: Oct 28, 2018 7:16 PM
Thank you everyone for your reply.
myob [GA], US postal money orders? Wow, that's creative! Respect :-)
Robert J [CA], thank you. That's higher than my current saving account rate at 1.80%
Homer [TX], Yes agree with everything you said.
elliot [RI], I have lots of debt but they're constructive debts (mortgages). I would pay down mortgages after the money is devalued.
AllyM [NJ], I believe the economy would crash regardless of who is in power because we have the unmanageble size national debt..
Kurt [MI], Thanks. Good to know that treasury fund yield is higher than MM fund.
myob [GA], Yep, I'm scared of the bank bail-in. Banks could legally confiscate your money to help them survive during crisis.
Oregon Woodsmoke [ID], another vote for MM account. Thanks.
fred [CA], ha ha ha X-D
JB [OR], I would want my money back after the bubble pops (either real estate or stock). Sadly I don't know exactly when that would happen.
planty [MO], send me your account number? for me to transfer it from your account to mine? :-)
Moshe [CA], bond value decreases when the interest rate goes up. That's exactly what the fed is doing right now. Therefore bond is not a good place to invest now.
Wilma [PA], yes I'm a big fan of credit union as well
Cjo'h [CT], bridge in OR? Ally's olde tin can? Obviously I've missed the last party :-) --73.168.x.xxx
where to park cash? (by S i d [MO]) Posted on: Oct 29, 2018 5:16 AM
Put it somewhere easy to access when real estate prices drop. Vanguard S&P mutual fund is easy, cheap and values remain solid over the long-haul. I don't believe they've every LOST money regardless of which 3 years period you begin and end with, except Oct 2007 to May 2013. Had you invested at the "height" in 2007 and held on, today your $143/share would be worth $245. Not great...not terrible.
I'm not so convinced that we are in a bubble. Bubbles are created by irrational exuberance and speculation. To date, we've seen strong corporate earnings that mostly justify the increased values. The P/E for the S&P 500 got to around 120 at the top of the last cycle...nutty considering the average is around 15. Today it's around 22. A little high, but nothing crazy.
Turn off the 24-hour news cycle; it'll make you crazy. --173.20.xxx.xxx
where to park cash? (by Triston [IL]) Posted on: Oct 29, 2018 6:00 AM
Sid [MO], thanks for your reply. Yes I love Vanguard S&P as well. Let see whether this is a bubble. The fed printed so much money. They've inflated a lot of thing (including stock market). --73.168.x.xxx
where to park cash? (by Nicole [PA]) Posted on: Oct 29, 2018 6:32 AM
marijuana ... the legal kind, not the baggie on the street corner !! --72.70.xxx.x
where to park cash? (by RichE [IL]) Posted on: Oct 29, 2018 6:58 AM
Iron condors --67.186.xxx.xxx
where to park cash? (by Moshe [CA]) Posted on: Oct 29, 2018 9:22 AM
Interest rates are higher now. If you buy a bond at today's price, and the stock market bubble pops, there will be a recession, interest rates will go back down to near zero, and your bond carrying today's interest rate will be in demand and worth more than you paid for it.
where to park cash? (by Chris [CT]) Posted on: Oct 29, 2018 9:26 AM
I don't believe in the doom and gloom or timing market cycles.
I park my spare money in a money market account. Money I'm not using for over a year goes into my Vanguard mutual funds either for my 401k or just into a mutual fund.
Gold is a terrible investment, your inflation hedge is mortgaged real estate. --24.187.xxx.xx
where to park cash? (by Livethedream [AZ]) Posted on: Oct 29, 2018 12:15 PM
I'll say this, DON'T buy an oil ETF. I put 100k into USO in 2010 or 11, as a hedge when it was about $40 a barrel. Thinking as oil went back up so would the ETF and I could drive for free. Wrong. Oil's $65-70, nearly double. My account is worth $87k. Been basically flat for nearly 10 years.
Gold too. Not a good investment, unless you own the mine. Largest gold mine in AZ is about ten miles from my house. They pour millions into it, but I don't see much gold.
We still carry a shovel and watch for quartz veins when off roading though. LOL --47.216.xx.xxx
where to park cash? (by Livethedream [AZ]) Posted on: Oct 29, 2018 12:20 PM
^^^ PS - Looking back I should have put the 100k into a Tesla, and enjoyed the money... I may still. :) --47.216.xx.xxx
where to park cash? (by Opinionated [NC]) Posted on: Oct 29, 2018 5:08 PM
Consider the Vanguard GNMA. Not insured directly but almost as good as an insured account. --66.226.xx.xx
where to park cash? (by Radar [IN]) Posted on: Oct 29, 2018 6:23 PM
I would park your extra money in physical silver. I have a ton of it and it is only $14+ an ounce now. I paid a lot more than that for it years ago. --184.18.xx.xx
where to park cash? (by Lynda [TX]) Posted on: Oct 30, 2018 5:32 PM
Triston, I read thru everyone's post to see if my suggestion was already stated--but no, so I will suggest it.
Find a place outside the US that you like to vacation and buy your own little condo there. My DH and I visited Mexico, Trinidad, Costa Rica, Belize, and Dominican Republic. There were pros and cons to all of them but I chose Dom Rep. Very free and no govt interference. Property prices are the lowest we found and under $125K price has no local taxes! Bank accts are easy to set up to keep under $10,000 there. Food is good, costs are low. Local people are friendly, lots of ex-pats from US and Canada, Italy, France.
I bought a low cost, rather older condo in 2013 and yes, things are slowly failing and have to be repaired as they come up. If you have more money than I did you can buy newer less maintenance unit. The good thing is everything local costs less, including repairs and Labor. Recently I paid 950 pesos (less than $20)for a canister of LP cooking gas (delivered same day as requested) which will last me@ 6 mo. My wash machine tap replacement will cost $20 for a new brass tap and fitting, and 400 pesos ($8!) for labor. My HOA is $100/mo and incl water, internet and cable TV. I am one block from the beach.
Find a place you would be happy visiting often, and invest there. You can do Air B&B type stuff or just keep it for your family. You will have the best of both worlds, and never pay for a hotel again. One year I sold 2 rentals and had cash with no place to put it. I am SOOO glad I did this. --186.6.xx.xx
where to park cash? (by Triston [IL]) Posted on: Oct 30, 2018 6:45 PM
Nicole [PA], that's really creative! However weed the organic matter. Wouldn't it rot if keeping for too long?
RichE [IL], thanks for the Iron condors concept. I've got burned from option in the past. Not sure whether I would be brave enough to get back.
Moshe [CA], hmmm you have to be right twice (stock market bubble pops and interest rate go back to near zero) in order to make this plan work.
Chris [CT], central banks have manipulated the gold price to make us think it's terrible. Look at what they're doing. Central banks worldwide are hoarding gold like no tomorrow... Yes mortgage is a great inflation hedge as long as the interest rate is fixed.
Livethedream [AZ], hey bro I feel your pain. I've lost a lot of money from USO ETF as well even thought the oil price went up. It was the backwardation effect that kills this ETF. Sadly I learned about this after losing lots of money :-( Gold is not an investment. It's more like an insurance IMO... Tesla would be next car :-)
Opinionated [NC], thanks.
Radar [IN], sadly I paid a lot more than $14 years ago as well. We should see the light after JP Morgan stop maniputing the silver spot price.
Lynda [TX], I really like your idea! Frankly I'm considering PR (Puerto Rico) for oversea real estate. It's next to your Dominican Republic. PR is easier to come and go since it's a US teritory. Many people there speak English which is a plus :-) --73.168.x.xxx
where to park cash? (by Terri [OH]) Posted on: Nov 1, 2018 3:14 AM
Good thread. Agree with everything you said and am currently in the same position!! Wish we could talk. --107.9.xx.xxx
where to park cash? (by Pmh [TX]) Posted on: Nov 1, 2018 1:27 PM
lol Radar.... --104.218.xxx.xx