I pulled my money from the market and now am looking at where to put some short term.
I am ambivalent about CD's, does anyone have anything interest bearing instruments or accounts they use for short term growth? Short term meaning 6-8 months, maybe a year for some funds. Thanks.
mahatmakanejeeves
(60,568 posts)Ladder them so that something matures every week. That is, don't take all the money and buy one 17-week T-bill with it, for example. Split it up into 17 parts and buy one 17-week T-bill this week and another 17-week T-bill with it next week and so on.
The interest is federally taxable, and you can withhold as you go. The interest is exempt from state taxes.
58Sunliner
(4,937 posts)A HERETIC I AM
(24,570 posts)So the 8 week paper auctioned today has a rate of 5.346%, but in order to realize $53.46 interest on $1000 face value of these notes, you would have to reinvest at the exact same interest rate 5 more times in order to have that result. It's not likely as the rate changes all the time, so it might be higher when you reinvest or it might be lower.
You can sell them at any time however, and you may find their value has gone up during the time you hold them.
https://www.treasurydirect.gov/instit/annceresult/press/preanre/2024/R_20240801_2.pdf
Abnredleg
(750 posts)My money market fund at Vanguard is paying 5.3%, which is extremely good for a safe investment.
58Sunliner
(4,937 posts)lapfog_1
(29,980 posts)T=bills and tax free munis for low risk.
"near junk" bonds, etc for higher yields... but I really don't know much about these as I am too risk adverse to even look... for high risk / higher yield, I look for bargains in the market.
That said, I sold off most of my stock market portfolio last week... so it's all cash now except for my ESOP shares and my 401K. In the same position as you... looking at my options.
58Sunliner
(4,937 posts)I am waiting to re-invest in some stocks. I remember last election cycle the ultimate low was Dec-Jan. And there were some real bargains which if my situation had been different would have made a lot of money.
lapfog_1
(29,980 posts)I sold my Nvidia holdings at 124... watched it drop to 104 day before yesterday... went to bed thinking "wake up early and buy Nvida again at the open"... overslept by about 2 hours... and it was at 114 already... went up to 117 now back to 111 and change. If I was a day trader... I probably could have make 7 percent in that one day trade. Damn... kicking myself.
58Sunliner
(4,937 posts)I am learning to day trade and had traded up from 104+ as a day trade but had decided not to do another trade and walked away! UGH!!!! I have a margin acct and didn't want to get flagged. I now have a separate cash acct. Tunnel vision. One of life's regrets.
lastlib
(24,726 posts)(ticker SADAX), earned 3.7% total YTD return, 1-yr ROR 6.65%. 3- and 5-year total returns (3% and 3.2% respectively) aren't eye-popping, but that took in a period when interest rates were climbing; as a short-duration fund, that's a little more sensitive to rates, those numbers were decent in the environment. The income-only returns are better, although I haven't calculated them in a while. I've been happy with it, and in a market with expectations of lower rates, I suspect I'll be happy with it for the near-term.
Note: I haven't looked at its Morningstar page in a while, so I'd suggest you look at that.