No. of Recommendations: 1
I'm looking for a little advice on fixed income investments. With the recent scare in the stock market, coupled with a 4 year bull run, I felt the time was right to step out of the game for a while and sold everything. My brokerage's rate on their money markert accounts are pathetic, so I'm looking for a safe place to stash some cash for a while. Could be a couple of months, could be a couple of years. I do, eventually, think I will get back into stocks/stock funds.

Any ideas for some fixed income investments with a decent rate of return?

Thanks so much for your anticipated response.


It sounds like you are looking for a temporary parking place, which means you want liquidity, which is not necessarily going to get you the best "fixed-income" return in the long run. (In the short term, because the yield curve is slightly inverted, you can actually get comparative good returns on short term vehicles).

I'm not up on a day to day basis, but you should be seeing around 5% from the better yielding money markets and on-line savings accounts. If your brokerage isn't offering those, you will either need to switch brokerages or find somewhere else for your cash and accept that when you do get back into stocks you won't be able to have the instant access to the money you would if you used the brokerage's money market.

Another good option, especially if you have high state taxes and this is taxable money, is Treasury Bills (4 week, 3 month, 6 month). You can get these for no commission auctions through Treasury Direct—I can link to my bank account for no fee, but I don't know if your brokerage will let you do that. Some brokerages let you buy Treasuries at auction for no commission.
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement