What To Do With Your Cash?
So, what are you doing with the cash in your brokerage account that is waiting to be put back into the stock market when this downtrend turns to an uptrend(whenever that is)? It can be hard seeing your money just sit there not earning any interest. You could move it into a money market fund but the interest rates are so low now.
A great option is Treasury Inflation-Protected Securities or TIPS for short. TIPS provide protection against inflation and currently offer better interest rates than savings accounts or CDs.
The best way to invest in TIPS using your brokerage account is via the Vanguard Inflation-Protected Securities Fund because of its super-low 0.20% expense ratio. The ticker symbol is VIPSX.
Other options include the TIPS exchange trade funds(ETFs for short). There are two. The iShares Barclays TIPS ETF (ticker:TIP) and the SPDR Barclays Capital TIPS (ticker: IPE). Both have an expense ratio of about 0.20%. The main difference being they track slightly different indexes. Both will help you combat inflation and earn a bit of itnerest on your parked cash.
With inflation rearing up its ugly head everywhere you look. TIPS are an inflation fighting place to park your money.
A great option is Treasury Inflation-Protected Securities or TIPS for short. TIPS provide protection against inflation and currently offer better interest rates than savings accounts or CDs.
The best way to invest in TIPS using your brokerage account is via the Vanguard Inflation-Protected Securities Fund because of its super-low 0.20% expense ratio. The ticker symbol is VIPSX.
Other options include the TIPS exchange trade funds(ETFs for short). There are two. The iShares Barclays TIPS ETF (ticker:TIP) and the SPDR Barclays Capital TIPS (ticker: IPE). Both have an expense ratio of about 0.20%. The main difference being they track slightly different indexes. Both will help you combat inflation and earn a bit of itnerest on your parked cash.
With inflation rearing up its ugly head everywhere you look. TIPS are an inflation fighting place to park your money.