Decision Time Is Approaching

It’s time to make some decisions. The 4 test accounts (Lending Club is a permanent IRA) are cash accounts. They were created to hold some extra cash and to learn something. The extra cash was withdrawn from an IRA at the end of 2014 for a project in 2015.

The project involved the sale of one house and the building of another. The sale closes in less than a month and will result in generating some cash to be held until needed for the new construction project. This requires deciding where to hold the cash. While I’m at it, I’d like to start reducing the number of test accounts.

So I decided to start the decision process by looking at the percentage weekly gains for the accounts and the S&P 500 Index. I did a correlation between these accounts and their weekly changes. Following are the results.

 

	S&P 500	BTRMNT	WLTFRNT	FOLIO	SCHWAB
S&P 500	1.00
BTRMNT	0.92	1.00
WLTFRNT	0.87	0.97	1.00
FOLIO	0.85	0.80	0.74	1.00
SCHWAB	0.79	0.85	0.82	0.68	1.00

While these numbers will play a role in making the two decisions, they won’t be major factors. I think more significance will be placed on what I think their future roll will be in my investment plans, and their operational issues.

I need to make these decisions in the next few weeks. Follow me on Twitter @billlanke and I’ll let you know when I make more posts.