Thanks for the info.
My CPA seems to very knowledgeable in this area. He has lots of investments in many different areas, but I do understand why you say that. I don't take all his advice anyway.
Need Advice Regarding Excess Cash In My Business
- Thread starter Chuckinden
- Start date
My CPA seems to very knowledgeable in this area. He has lots of investments in many different areas, but I do understand why you say that. I don't take all his advice anyway.
For context, I'm a financial advisor with 36 years at a major Wall St firm (you've heard of us).
No disrespect, as you know more about investments than I do, but what does this mean? Do work on Wall Street on the research side, buy side, sell side? Or do you have your own shop with access to said Wall Street firm data and analysis, all the while providing your own perspective and expertise on investing To your clients?
No disrespect, as you know more about investments than I do, but what does this mean? Do work on Wall Street on the research side, buy side, sell side? Or do you have your own shop with access to said Wall Street firm data and analysis, all the while providing your own perspective and expertise on investing To your clients?
My best advise is to set up an account with an online broker, I recommend Fidelity. Put the excess funds in a money market account such as SPAXX. That's a fund composed of mostly U.S. government treasures and other extremely safe havens for cash and is paying nearly 5% annual return. You can write checks or transfer funds in and out in seconds on line.
I would stay away from CDs, real estate or any non-liquid asset. You want 100% flexibility to move cash in and out as needed as your business requirements change.
I would stay away from CDs, real estate or any non-liquid asset. You want 100% flexibility to move cash in and out as needed as your business requirements change.
Open an account for free with Fidelity or Schwab or somebody and put a third of it in MO, a third of it in PM and a third of it in BTI and enjoy the dividend income of over 8% cumulative and if you leave it there and forget about it you'll get share price gains as well. OR you could reinvest each quarterly dividend and compound your growth. Regardless of what some might say, Big Tobacco is turning into Big Nicotine (vaping, heat no burn, nicotine pouches, etc.). Nicotine use is growing.
My business card says " Financial Advisor".
I can't make it any more clear than that lol.
I'm not a financial advisor and I retract my previous post. Take it all out and put it on black. Time to live a little.
Do you have any employees other than yourself?
If so, thanks for your contribution to others. And, if so, are they appreciated as well as they could be? If your answer is not a firm yes, I would take a portion of your good fortune and reinvest directly in them. Not all, but some.
Good luck! Interesting thread.
If you don't have any employees but yourself you should open a SEP IRA Monday morning. You can put a big chunk of your pre-tax income in it each year.
This is great advice.
Going back to my post about CPA's... if the CPA hasn't already brought this up... shame on the CPA... and find a new one.
We have several employees including my wife and she has had an SEP IRA for years.
SEP IRA is a good deal if your doing it for retirement planning only. If you think you may need that cash for the biz at some point of time in the future don't put it in any type of IRA as you will get panelized should you withdraw it.
Another thing about Seps that you might already know is if you have one for yourself or your wife if she is part owner, then the law requires you also offer one to all your employees.
Another thing about Seps that you might already know is if you have one for yourself or your wife if she is part owner, then the law requires you also offer one to all your employees.
Deal Engineering 101. otherwise known as Aggressive Side-Hustling....
1. Sign up for MyPoints. Very reputable site. Review 1. Review 2. Review 3. Ensure Pop-up blocker is off.
2. Open High Yield Savings account with Valley Direct Bank through MyPoints.
More info. Also works for Swagbucks, but you will earn less ($60).
3. Deposit at least $1,000.
You'll earn 13,600 points (~$85) from just the deposit after 32 days. Account also currently yields 5.25% APR.
I have zero referral links in this post. Y'all are welcome. Enjoy.
Edit: Swagbucks just increased reward amount from 6000 points ($60) to 8000 SB ($80) as I typed this post. You must act quickly with hot deals.
1. Sign up for MyPoints. Very reputable site. Review 1. Review 2. Review 3. Ensure Pop-up blocker is off.
2. Open High Yield Savings account with Valley Direct Bank through MyPoints.
More info. Also works for Swagbucks, but you will earn less ($60).
3. Deposit at least $1,000.
You'll earn 13,600 points (~$85) from just the deposit after 32 days. Account also currently yields 5.25% APR.
I have zero referral links in this post. Y'all are welcome. Enjoy.
Edit: Swagbucks just increased reward amount from 6000 points ($60) to 8000 SB ($80) as I typed this post. You must act quickly with hot deals.
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