On Sunday, 18 September 2016 at 01:04:16 UTC, dewitt wrote:


If you are actively trading I like Interactive Brokers. I know u mentioned before about doing some day trading so they are also good for that. If you looking for a more buy and hold strategy for the Foundation then I would just choose which one has lower cost ETFs and trade commissions.
https://www.interactivebrokers.com

I would have my accounts with them if my company allowed it, but really just for trading purposes. I'm not sure it would be the best thing for a non-profit that does not plan on trading much.

I would recommend they think first about their goals and what kind of portfolio they will have and then think about the brokerage that fits with their goals best. For instance, I have some accounts with Fidelity because they offer free ETF trading on a number of iShares accounts.

A commenter made a point about the amount of interest earned in banks. Indeed, bank deposits in the U.S. earn basically nothing. Of course, in other countries, short-term rates are below zero, potentially offering you even less. The key point I would emphasize is that you cannot earn a greater return without taking more risks. Online banks offering you a nice interest rate are investing in riskier debt.

I would again advise you to think about your investment objectives seriously. The reason why an organization like the Harvard endowment invests the way it does is because it basically has an infinite horizon. I don't think the D foundation is in that sort of place. If you have a shorter time horizon, then that has implications on how much risk you should be willing to take. That implies little to no exposure to equities/high yield bonds/etc.

Another commenter questioned putting all the money in a single US bank. Of course, there is a difference between having money in deposits vs. invested in mutual funds. Anyway, even if you keep the cash in deposits, the limit is $250,000 for FDIC insurance, so I wouldn't think about splitting things up between several banks until then. It might make sense to split up the money to a foreign bank if you could possibly have liabilities there.

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