where to park money for downpayment in a year
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Anonymous
| Hopefully about to sell a house and probably going to rent for a year. Any advice on where to park the proceeds for the next year if our house sale is successful? We're talking a little over $100k probably. |
Anonymous
| Look at the online investment sites like wealthfront.com or betterment.com |
Anonymous
| online savings account. the rates suck, but will be better than a brick and mortar bank. maybe a CD if you are sure about your timeframe. |
Anonymous
+1 Its automatic |
Anonymous
| If you don't want to risk losing any of your money, just put it in a CD or something. If you are more flexible invest in a vanguard mutual fund, like the S&p500 or total stock market index. What I mean by more flexible is, say the market tanks and you lose some money. If your $100,000 turns into $80,000 are you flexible enough to rent for another year while you save up more money for a down payment? |
Anonymous
| For a year, just find a bank that will pay 1-2% (Cardinal, Capital One, etc.) |
Anonymous
| If you re-invest within a limited time frame, you don't pay tax on the money. I think it may be 6 months. You should look into this before waiting a full year - |
Anonymous
Any reason you aren't rolling into another house? How are you going to feel about the "lost" rental money? |
Anonymous
| We have ours invested with our broker who has it spread out in a few different types of low risk investments. We make between 3.5-5% |
Anonymous
| We used an Ally Bank no penalty CD. Didn't do great...maybe 1.1% but it was FDIC insured and we weren't penalized if we wanted to pull the money out before the CD matured. This worked for us because we weren't sure exactly when we would find the new house. |