EliteZags said:

---

Milwaukees Best Light said:

---

How often do these things compound? If I see one that says it compounds daily, let's say 4 percent, does that mean that if I put in $100 on day one, I will have $103 on day two? And $106.3 on day three?

---

spot on, so after 1 year his $125K turns into a cool $206 billion

hope it hasn't been sitting in the checking acct long..

---

Compound interest baby, eighth wonder of the world!

NoHo Hank said:

---

EliteZags said:

---

Milwaukees Best Light said:

---

How often do these things compound? If I see one that says it compounds daily, let's say 4 percent, does that mean that if I put in $100 on day one, I will have $103 on day two? And $106.3 on day three?

---

spot on, so after 1 year his $125K turns into a cool $206 billion

hope it hasn't been sitting in the checking acct long..

---

Compound interest baby, eighth wonder of the world!

---

Just stopping by to say I like your username

Definitely Not A Cop said:

---

wanderer said:

---

Milwaukees Best Light said:

---

How often do these things compound? If I see one that says it compounds daily, let's say 4 percent, does that mean that if I put in $100 on day one, I will have $103 on day two? And $106.3 on day three?

---

If that were the case, $100 would be worth $158,538,777 after 365 days.

---

That sounds like a pretty good deal.

---

This website should offer high school tags in addition to ag tags. You can't get either until you understand how interest works.

Those CD rates look pretty good.

Historically, short-term bond funds would have been the answer to OP's question. They were conservative, and usually out-performed money markets and CD's. These days, no thanks.

The other option I'd consider is a dividend fund such as SDY. When the share price drops, the dividend yield goes up, and if you reinvest it, you have a nice mechanism for buying low. It's still riskier than cash options, but the upside is good.

You don't need access to all $125k at once. You need access to some amount of that every few months. Leave the amount you need for the next payment in cash, and the rest can be tied up in things that take a few weeks to access.

94chem said:

---

Definitely Not A Cop said:

---

wanderer said:

---

Milwaukees Best Light said:

---

How often do these things compound? If I see one that says it compounds daily, let's say 4 percent, does that mean that if I put in $100 on day one, I will have $103 on day two? And $106.3 on day three?

---

If that were the case, $100 would be worth $158,538,777 after 365 days.

---

That sounds like a pretty good deal.

---

This website should offer high school tags in addition to ag tags. You can't get either until you understand how interest works.

---

Maybe they can have an A hole tag too. I asked a question, apologies for not knowing everything. I never really had any money, so I know how interest against you works. Now that I have some money, I am learning on the fly. Thought this would be a good spot to learn. Plenty of things in my job you wouldn't have the first clue about. Thanks for being an ass though. *******.

Stone castle bank, which lends to other banks will get you above 4% fully liquid and fdic insured to $25M.

Section327Ag said:

---

I use TBills through Treasury Direct, buying either a short term 4 or 8 week bill with automatic reinvestment, or with a known date like a fall tuition payment a duration that returns when I need it. They sell 4, 8, 13, 17, 26, and 52 week bills. Bills are currently issuing between 4.6 and 5%. So if I was holding cash for a tuition payment due in late August, I would buy a 17 week TBill paying 5%.

---

Good post.

Infinity Ag, I think you live in Texas. But if you live in a different State with an income tax, direct treasury purchases are also exempt from state income tax. A big kicker to your after tax return in some of the higher tax states.

infinity ag said:

---

12thMan9 said:

---

You may need to define "pretty quickly" a little more. I would, and have, put that amount into EPD & ET, both paying almost 8% in dividends. There's your tuition(my guess) for 1 year.

There is some other, safer options. AMEX has a high yield MMA I believe. They keep sending me info to put money there.

---

That means at most thrice a year, when the term tuition payments are due.
I want to avoid a situation where money is stuck until some holding period expires, else there's some fee/penalty.

I googled it just now, EPD/ET is new to me... let me check it out.

---

Note that EPD is a MLP (a limited partnership) which means it doesn't really pay a dividend per se but instead is generally a return of capital and taxed as ordinary income as opposed to being taxed as long term capital gain (as a qualified dividend would). It also does business in a bunch of states so technically you may have to file tax returns in those states with a state income tax. But because the entity in which your are a partner generally doesn't actually make much if any profit because of the depreciation it takes on their enormous capital projects (pipelines and such) which offsets profits, your taxable income in each of those states is generally a few dollars at most. You may technically be obligated to file in some of those states, but you should weigh the risk if you didn't. I have also heard there can be some tax complications when you sell your EPD shares given you are a limited partner in the entity

Anybody use ally for MM or online savings? Would you recommend?

I use for online savings/checking. They've been great ...granted, my comparison is Wells Fargo

ReloadAg said:

---

I was in the same boat as you. No debt and aboit $200k in cash. Parked $130k in a high yield savings account at Marcus by Goldman Sachs currently earning 3.75%. Just spoke to my advisor on Friday and I'm about to put about $30k in a brokerage account and will keep the remaining $60-70k in my Chase account.

---

Awesome tip!! If we all follow this strategy we will make $30k right off the bat!!

mtony77 said:

---

Anybody use ally for MM or online savings? Would you recommend?

---

I use the same combo. Ally just raised their money market rate from 3.60% to 3.80%. Savings pays 3.6%. They keep up with rates better than most. I transfer money (next day) to Wells Fargo when needed for regular expenses, and have never had an issue with Ally in over 10 years.

+1 for Ally savings. Parked a large sum there in January and as stated, they seem to be ahead of the curve on increasing APY

Not Silicon Valley bank

_lefraud_ said:

---

+1 for Ally savings. Parked a large sum there in January and as stated, they seem to be ahead of the curve on increasing APY

---

Hopefully not more than $250K

I've got some $ parked in Citi and Live Oak Bank, most of it in Citi's Accelerate account.
They have been at 3.85% for over a month and had been neck and neck with Live Oak Bank, but Live Oak has cooled off as of late.

I find Citi's transfers (both push and pull) are quicker than others like Chase & Wells Fargo (suck!).

Thanks to this thread, just opened up a Marcus Goldman account.

YouBet said:

---

htxag09 said:

---

I didn't realize we were already due for our where do I park this spare $$$ I have lying around thread already.

OP is a little light with the amount, though. Needs to step up their game.

---

Agreed. We may now need a threshold amount to start one of these threads to cull the riffraff. Just like our $5M hurdle for even posting here.

So, you need $5M to post on F57, period. Then, if you want to post a "Where do I park my spare money?" thread then that dollar amount should probably at least be $200k.

BTW, the posting standard probably kills all of these errant Backdoor ROTH IRA threads if we start policing this board, appropriately.

I will add this as an agenda item at next F57 Board Meeting.

---

I don't think I'm at $5mill yet, but I did just park $200k into a Merrill Lynch account paying 4.25%.

I guess I'll see myself out…

Hungry Ojos said:

---

YouBet said:

---

htxag09 said:

---

I didn't realize we were already due for our where do I park this spare $$$ I have lying around thread already.

OP is a little light with the amount, though. Needs to step up their game.

---

Agreed. We may now need a threshold amount to start one of these threads to cull the riffraff. Just like our $5M hurdle for even posting here.

So, you need $5M to post on F57, period. Then, if you want to post a "Where do I park my spare money?" thread then that dollar amount should probably at least be $200k.

BTW, the posting standard probably kills all of these errant Backdoor ROTH IRA threads if we start policing this board, appropriately.

I will add this as an agenda item at next F57 Board Meeting.

---

I don't think I'm at $5mill yet, but I did just park $200k into a Merrill Lynch account paying 4.25%.

I guess I'll see myself out…

---

Thank you respecting the rules. I will move you to the top of the Wait List for your honesty here.

If it makes you feel any better, we may need to lower the threshold due to recent events potentially leading to a complete meltdown in the US economic system. In addition, we may actually introduce a non-monetary equivalent that would allow you to post. Cigarettes, bullets, whiskey, etc. All could be viable tender going forward.

Hungry Ojos said:

---

YouBet said:

---

htxag09 said:

---

I didn't realize we were already due for our where do I park this spare $$$ I have lying around thread already.

OP is a little light with the amount, though. Needs to step up their game.

---

Agreed. We may now need a threshold amount to start one of these threads to cull the riffraff. Just like our $5M hurdle for even posting here.

So, you need $5M to post on F57, period. Then, if you want to post a "Where do I park my spare money?" thread then that dollar amount should probably at least be $200k.

BTW, the posting standard probably kills all of these errant Backdoor ROTH IRA threads if we start policing this board, appropriately.

I will add this as an agenda item at next F57 Board Meeting.

---

I don't think I'm at $5mill yet, but I did just park $200k into a Merrill Lynch account paying 4.25%.

I guess I'll see myself out…

---

I use that account as well, probably going to consolidate my cash position there as t-bills mature in the coming weeks.

What's the BoA/Merrill Lynch account that pays 4.25%?
It's a liquid online savings account?

Chase has one now at 3.80% if you sign of for their private group.

Ghost of Bisbee said:

---

What's the BoA/Merrill Lynch account that pays 4.25%?
It's a liquid online savings account?

---

Called Preferred Deposit, through ML although it's technically a BOA account. I have an EDGE account and had to call the service number to open but after that you can transfer funds online. You have to move money in and out through orders versus sweeping so a transfer usually takes overnight, similar to a mutual fund. Takes $100K to open but I think that you can drop below that once you open (going to find out eventually once I move funds back into the market).

Something I didn't worry about much a week ago but it is also FDIC insured.

Silicon Valley Bank for the win.