All In at 5%

When I say that I was sitting in cash on this blog, I usually mean it literally. It’s usually money parked in my checking account or my brokerage cash account.

I just checked my bank’s website, and they proudly say that “no interest is payable” on most accounts.

To be fair, until recently, there wasn’t much of an option.

In the past year, options have opened up. First, I was parking my money in a bank “GIC” or certificate of deposit. The cashable options at first were not great. Then my banker convinced me to lock the money for a year for a higher return. The money is locked up, but earning me 4.3%. I thought that was good. I still have three more months to wait to get that money. (As soon as it’s unlocked, I’m getting that money out!)

Then recently, I found the money market ETF paying 5.05% currently. I dipped my toe in it, with 7% of my portfolio in that fund, a few weeks ago.

I am now up to 25% of my total portfolio in this one fund. I’ve never been invested so much in a single thing.

I will take the 5% return on a non-volatile product and be happy with it. When interest rates start to dip, we may have to take on more risk again.

This was supposed to be a dividend blog, and now I’m one-quarter invested in a money market. And another 10% on top of that in ultra-short-term government bonds…

Ah well. An interesting journey I’m on.