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Message
Short term investment suggestions
Posted on 11/21/14 at 12:11 pm
Posted on 11/21/14 at 12:11 pm
I took some money out of a rental house that we had paid cash for. I will be on the prowl for another property to sink this into but it may take 6-12 months for the right property to pop up. Obviously I want this money easily accessible and I need to beat the rate on the note for it to be worth pulling out (4.5%). I just wanted to see what the money board thought would be a good short term solution.
4
Posted on 11/21/14 at 1:47 pm to bobaftt1212
6-12 months and looking for a 4.5% rate is definitely risking principal. If you're willing to risk it then AT&T would be where I was looking. However, If it were my money, I'd be taking .5%-1% in a short term bond fund.
Posted on 11/21/14 at 1:51 pm to bobaftt1212
I don't think you can get anything short term to beat 4.5% without taking some risk.
Best I'd say is to get something like a short-term bond index fund or something that will keep principal intact and get a better rate than savings account.
Best I'd say is to get something like a short-term bond index fund or something that will keep principal intact and get a better rate than savings account.
Posted on 11/21/14 at 1:51 pm to Shepherd88
woah 
Posted on 11/21/14 at 7:19 pm to bobaftt1212
If there was a short term, safe investment that could beat your note of 4.5%, the bank wouldn't have offered you 4.5%
Posted on 11/22/14 at 1:37 pm to Volvagia
I am looking for relatively safe. I realize nothing is going to be completely safe at that rate.
Posted on 11/22/14 at 2:28 pm to bobaftt1212
Tax free muni bonds are at about 3.8 right now.
You have to watch if rates rise though.
You have to watch if rates rise though.
Posted on 11/22/14 at 10:55 pm to bobaftt1212
Relative to what though?
Let's phrase it like this: what percentage you are willing to take a loss on principal .
Let's phrase it like this: what percentage you are willing to take a loss on principal .
This post was edited on 11/23/14 at 7:39 am
Posted on 11/23/14 at 8:59 am to Retrograde
Yea 3.8% for a 25 year bond. So if rates rise, you're screwed.
Posted on 11/23/14 at 10:39 am to Shepherd88
You mean when rates rise.
Posted on 11/23/14 at 4:37 pm to bobaftt1212
Completely safe investments such as CDs and money market accounts are paying next to nothing. Why even bother? I would have just kept the house paid for and take the money out when you need it. If anyone has any ideas about how to get any kind of return without risking principal, I would like to hear them.
Posted on 11/23/14 at 6:49 pm to geauxpurple
I'm getting the sense you really understand economics... Good luck buddy...
Posted on 11/23/14 at 9:47 pm to geauxpurple
quote:
If anyone has any ideas about how to get any kind of return without risking principal, I would like to hear them.
Posted on 11/24/14 at 3:57 pm to geauxpurple
Would you like us to catch a unicorn for you too?
You have to decide what's more important, the principal or the return
You have to decide what's more important, the principal or the return
Posted on 11/24/14 at 4:14 pm to Shepherd88
quote:
Shepherd88
quote:
6-12 months and looking for a 4.5% rate is definitely risking principal. If you're willing to risk it then AT&T would be where I was looking. However, If it were my money, I'd be taking .5%-1% in a short term bond fund.
Disclaimer: I do not own a single stock. I know precious little about the markets.
Having said that, isn't AT&T trying to play a game of chicken with FedGov over the Net Neutrality stuff with them saying they had to "pause" tehir plan to rollout some broadband/U-Verse stuff? To which FedGov said you have like 10 days or two weeks to provide us with the details of the plan to prove to us our dcisions will truly cause a delay?
Doesn't seem like they make me think, "potential bigtime ROI!"
Posted on 11/24/14 at 4:23 pm to GFunk
Well first of all the op said he was looking for a ~4.5% return which he would cover with AT&Ts dividend with no capital growth. Of course however this is an individual stock, anything can happen and you certainly have the possibility of losing your principal.
With that being said we're talking about AT&T. The company still receives a large portion of their revenue and cash flow from local and long distance phone services unrelated to wireless broadband business. They also have the DirecTV deal pending still as well. This company is very diverse and proven to weather instances such as you've mentioned.
With that being said we're talking about AT&T. The company still receives a large portion of their revenue and cash flow from local and long distance phone services unrelated to wireless broadband business. They also have the DirecTV deal pending still as well. This company is very diverse and proven to weather instances such as you've mentioned.
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