A Place to Stash Cash While Sitting on the Sidelines
I have long contemplated what to do with money in my brokerage account while I’m not in the market. As it stands, letting your cash ride in a TD Ameritrade account will earn you next to nothing.
So happened that I found out about the Reserve Yield Plus Fund (RYPQX: Yahoo, web, prospectus, fact sheet) that maintains a $1.00 share price and currently pays about a 5.25% return on your money.
Much like a money market fund, RYPQX strives to maintain a share price of $1.00, and has daily liquidity, meaning you can get in and out of the fund on a daily basis.
There isn’t a whole lot of information out there on RYPQX, and I have to wonder if it’s a yet unknown place to stash cash in an uncertain market.
As an additional perk, due to a waiver of expenses, the annual operating expenses for all share classes was 0 basis points (as of May 31, 2007). Not bad!
If anyone has any experience with this fund, I’d love to hear about it.
More to come…
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Grant, I also just recently heard about RYPQX from FW. Please write about it when you find out more — especially on whether there is a minimum holding period to avoid transaction fee (if any), minimum investment amount and the settlement timeline for this fund.
oh, i and prefer FXA – capital appreciation and ~5% dividend.
FXA = Aussie dollar fund? Our dollar is awful right now, and the currency markets are the greatest trending markets available. HOWEVER, when they break they break hard, i.e. the Soros Pound debacle, the Asian currency crisis in the late ’90s….
Hey guys –
I currently have 30K in RYPQX and it seems to be performing well. The only catch is that you really dont have a clue what the hell is going on with it until you get you statements. Nevertheless, its been good so far.
Mark