If you had $5,000 cash right now what would you do with it?
I have an account that I opened a couple years ago at a traditional brokerage. At the time they were offering 10 free trades a month and with a rather attractive sweep money market fund. I liquidated my few remaining positions about 8 months ago and have been sitting in cash (emergency fund et).
I got a letter yesterday saying these accounts are being discontinued and converted into another type of account with a $40 annual fee and the sweep rate for sub $25k in cash is being reduced to the bare minimum (0.1% I think it said).
So here are my options as I see it.
- I can transfer it somewhere else (like high interest savings or something).
- I can transfer it and put it back in the market trying to stay relativly liquid in case I need to sell it.
- I can set up some kind of income portfolio on it. (Reits and MLPs with strong income streams).
- I can use half of it to pay down debt that should be gone in a couple months anyway.
You can suggest what you think I should do, but I'm really looking for what you would do with it.