Investing in cash?

[prognastat]

Peer to Peer lending is something I'm glad I never got in to even after it was posted about by multiple bloggers.

I guess my trust in people was just too low. Sometimes that's a bad thing and sometimes it's a good thing.

[Wishmaster]

I did, but i stopped about a year ago, still need some cash back.

I decided it's not worth the risk.

[RealPerson]

I tried peerstreet with a very small amount and I definitely would NOT recommend it.

[Tyler9000]

I personally use SCHO for the cash part of my investments. But any good Tbill or short term treasury ETF like SHY, SHV, BIL, etc. would also work just fine.

[SavingWithBabies]

Today, Robinhood launched a 3% rewards checking (guessing USA-only):

https://techcrunch.com/2018/12/13/robin ... -accounts/

I've been keeping my cash in a money market fund with intent of doing some CDs but 3% is tempting.

[Jin+Guice]

Does Vanguard have any good cash options like a CD or something? I've got a bunch of my money in a solo 401k and traditional IRA over there and I'd like to move it into a cash position. How does their moneymarket fund (that just means leaving it sitting there not invested right?) compare to cd rates?

[2Birds1Stone]

Competitive

[Chris]

Does Vanguard have any good cash options like a CD or something? I've got a bunch of my money in a solo 401k and traditional IRA over there and I'd like to move it into a cash position. How does their moneymarket fund (that just means leaving it sitting there not invested right?) compare to cd rates?

The money you put in VMMXX is invested in short-term debt, but can be treated like a cash position (highly liquid, stable value). The distributions float based on the demand in the money market. Those are significant differences compared to a CD, which has a fixed term and rate (usually).

[thegreatvoid]

Look out for online savings accounts with sign up bonuses.

Back in July i opened an account with Santander , that yieled me 2 % up to 100 k ( Euro area, withdraw anytime ) and in october , when the bonus yield was over, I opened various accounts with ING ( 5 % ) , which I´m probably going to close in January.

Also I would stash away some cash some place safe for a really rainy day .

[Kriegsspiel]

Does Vanguard have any good cash options like a CD or something? I've got a bunch of my money in a solo 401k and traditional IRA over there and I'd like to move it into a cash position. How does their moneymarket fund (that just means leaving it sitting there not invested right?) compare to cd rates?

I have money in their T-bill fund, VSBSX. They recently lowered Admiral status to $3,000 for it.

[Jin+Guice]

@Kriegsspiel: How is the t-bill fund valued? I'm looking for the simple cd/ bond experience (short-term, will probably ladder) where I simply hold to maturity and thus am not affected by price fluctuations of the underlying instrument.

[SavingWithBabies]

To follow up on Robinhood, looks like might be issues with that rewards checking being insured by SIPC. I hesitated to post it yesterday but assumed they would have cleared such a big offering with SIPC!

@Jin+Guice Vanguard has CD products. If I log in and go "My Accounts -> Balances & holdings" and then click on the "Buy and sell" on the upper left of the account, I see a bunch of choices including "Trade bonds or CDs". Well, all except one account (my taxable mutual fund holdings) has that option but I think for that I would use the brokerage account. If you can't do this in your Solo 401k, that would be great to know (I'm in process of setting one up with Vanguard right now).