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> you should be monomanically focused on the interest spread between cash balances in brokerage accounts and high-interest bank accounts or money market funds.
by ForHackernews 7y ago
> you should be monomanically focused on the interest spread between cash balances in brokerage accounts and high-interest bank accounts or money market funds. That is the cost that does not call itself a cost.
If you're keeping a large cash balance sitting uninvested in your brokerage account, sorry but that's on you.
- mrep 7y agoThis is one of the many reasons why I love Vanguard. They default by putting all of your brokerage account money into their money market fund.
- mherdeg 7y agoLately I have had a couple of reasons to keep cash in or near a brokerage account (brokerages offered signup bonuses for transferring assets, and affiliated banks offered mortgage relationship rates based on total balances in brokerage accounts). I've been buying one of VMMXX, VUSXX, or VMFXX and have been pretty happy with the results; the returns are comparable to a savings account, I'm not sure they're beating the current Wealthfront 2.51% cash account offer.