Author Topic: Best use cash in small business  (Read 3772 times)

MgoSam

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Best use cash in small business
« on: October 14, 2014, 10:40:50 AM »
I help run my family's business, it is me and my dad and a few employees (about 8 in total), and we are looking over our finances and for the first time in half a decade we have ample cash reserves, if we don't go on a splurge for new inventory we have over a year's cash reserve and we are thinking of finding a relatively safe investment to park some of the cash as right now it is sitting in the bank, anyone have any thoughts, should I be looking at a money market fund?

VirginiaBob

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Re: Best use cash in small business
« Reply #1 on: October 14, 2014, 11:25:24 AM »
Vanguard Total Stock Market Index fund.

Louis the Cat

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Re: Best use cash in small business
« Reply #2 on: October 14, 2014, 11:40:22 AM »
Seems to me that a bond fund might serve your purposes a little better than a stock market fund. Modest growth but low risk if you decide you want to make capital improvements or what have you.

MarciaB

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Re: Best use cash in small business
« Reply #3 on: October 14, 2014, 12:47:20 PM »
Don't put this into the stock market!!

Do consider a savings account that pays 1% or more (like Mysavingsdirect.com or Allybank.com).

MgoSam

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Re: Best use cash in small business
« Reply #4 on: October 14, 2014, 01:28:23 PM »
We won't be putting company cash into the stock market due to its volatility. US Bank is our bank, today we moved half our cash into our savings account, but I'm trying to see what the interest rate is on that and if there are any other safe investments to get some money. Ally is a decent option, but it does require keeping another bank account open, which is something that we would prefer not doing if we can avoid it.