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I had this same problem (what to do with cash). I have it in a bank savings account earning 1.25% APY (Capital One). That's where my non-retirement nest egg sits.
I took some of the cash though and started buying preferred stock. I have a mortgage REIT stock that pays out 12% dividends and I also own stock in XOM (which also pays dividends and is undervalued IMO). I have the REIT for the dividends (they've been pretty stable, even during the housing market collapse a few years ago) and I am holding the XOM until it goes up in value. However, I really don't recommend it. I only took out a small % of my savings for this and I only add 20% of what I save per month (only non-retirement) to the pot to buy stock every month. There is a risk I could lose a lot of it... and I know that.
I hope CDs and such go back up. I just can't get interested in them with the low interest rates. I considered bonds, but with the Fed raising rates in the coming months (maybe) I really don't want to get into bonds now.
I had this same problem (what to do with cash). I have it in a bank savings account earning 1.25% APY (Capital One). That's where my non-retirement nest egg sits.
I took some of the cash though and started buying preferred stock. I have a mortgage REIT stock that pays out 12% dividends and I also own stock in XOM (which also pays dividends and is undervalued IMO). I have the REIT for the dividends (they've been pretty stable, even during the housing market collapse a few years ago) and I am holding the XOM until it goes up in value. However, I really don't recommend it. I only took out a small % of my savings for this and I only add 20% of what I save per month (only non-retirement) to the pot to buy stock every month. There is a risk I could lose a lot of it... and I know that.
I hope CDs and such go back up. I just can't get interested in them with the low interest rates. I considered bonds, but with the Fed raising rates in the coming months (maybe) I really don't want to get into bonds now.
Where is capone paying 125bps?
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