Financial Samurai - Forums

General Investing => Fixed Income Focused => Topic started by: Johnny on September 10, 2018, 09:22:51 AM

Title: Best Liquid ETF's to Park Cash
Post by: Johnny on September 10, 2018, 09:22:51 AM
What do you think is the best place to park cash positions that are liquid. CD's are not liquid enough so I'm focusing on ETF's.

So far the one I like the most is FLRN (SPDR Bloomberg Barclays Investment Grade Floating Rate ETF).

Title: Re: Best Liquid ETF's to Park Cash
Post by: Sam on September 10, 2018, 09:39:18 AM
Just park your cash in an online money market account. Rates are now at ~1.85% or higher. You can get your cash within several days. Very liquid, and a good rate versus just a couple years ago at 0.1%!

I've set up a CD Step Stool strategy. It insures I'll always be liquid while maximizing my cash.

See: https://www.financialsamurai.com/build-a-cd-step-stool-not-a-cd-ladder-flattening-yield-curve-environment/

Quote from: Johnny on September 10, 2018, 09:22:51 AM
What do you think is the best place to park cash positions that are liquid. CD's are not liquid enough so I'm focusing on ETF's.

So far the one I like the most is FLRN (SPDR Bloomberg Barclays Investment Grade Floating Rate ETF).
Title: Re: Best Liquid ETF's to Park Cash
Post by: EricNJ on September 10, 2018, 06:10:00 PM
Your broker should have a high yield MMA that gets you close to Sam's example of 1.85%

Marcus by GS is a new online bank a lot of people seem to like, their yield is around there
Title: Re: Best Liquid ETF's to Park Cash
Post by: forumreader35 on September 11, 2018, 08:40:53 AM
Capital One 360's MMA is also at 1.85% right now for balances of at least 10K
Title: Re: Best Liquid ETF's to Park Cash
Post by: Sam on September 11, 2018, 10:37:14 AM
IEF, MUB, CMF, and sometimes TLT are my bond fund which I view as somewhat cash equivalents, but with principal risk.
Title: Re: Best Liquid ETF's to Park Cash
Post by: EricNJ on September 11, 2018, 12:20:00 PM
Quote from: Sam on September 11, 2018, 10:37:14 AM
IEF, MUB, CMF, and sometimes TLT are my bond fund which I view as somewhat cash equivalents, but with principal risk.

I'm in VTEB (Vanguard's version of MUB) but count towards my bond allocation only.
Title: Re: Best Liquid ETF's to Park Cash
Post by: rtysmith on September 11, 2018, 12:43:41 PM
Ally bank (ally.com) is at 1.85 with no minimum (savings)

I had $ with Marcus, they are a bit of a pain, Ally has been much easier. Paying .6 on checking too if over 15k
Title: Re: Best Liquid ETF's to Park Cash
Post by: pat on September 16, 2018, 10:18:37 AM
Does anyone used this credit union before offering 3.05% APY for 55 months
https://www.andrewsfcu.org/new-share-certificate-specials.html
Title: Re: Best Liquid ETF's to Park Cash
Post by: gkc on September 17, 2018, 05:38:53 PM
I agree with Sam's bond etf's but would add some shorter maturities there too,SHY and SHV.