Revisiting where to put money while deciding what to do with it

[Anonymous]

We have come into a large sum of money - about $700k - and need to put it somewhere while we decide what to do with it. We are living overseas at the moment and it will be about a year before we can sit down with a financial planner back in the US to figure it all out. I read a similar thread a few weeks back that mentioned CDs and Vanguard index funds, plus making sure to stay under the FDIC limit where applicable. (Individual vs. joint accounts is not an issue here.) Anyone have any suggestions for how to break up the money among these options? Like 200k in an online savings account, another 200k in another, the rest in an index fund, or break it up even more....?

We have no debts to pay off, solid savings and retirement accounts, no mortgage, and two kids under 2. A chunk of this money will go towards their college funds and maybe a house when we're back in DC, but again, it'll be a year before we can sit down to figure that all out.

Ideas? Thanks.

[Anonymous]

Do you have a US mailing address? A lot of US financial institutions won't open accounts for people overseas. You might want to read/ask at Bogleheads.

[Anonymous]

Yes, we do, that's not a problem.

[Anonymous]

If you just want to park it for a year then I would put in online accounts at 3 different banks. If you know at least some, say 25%, will end up in the market then I would put that % in a Vanguard index fund, like total stock market, ir maybe a life strategy fund.

[Anonymous]

If you just want to park it for a year then I would put in online accounts at 3 different banks. If you know at least some, say 25%, will end up in the market then I would put that % in a Vanguard index fund, like total stock market, ir maybe a life strategy fund.

[Anonymous]

FDIC insurance cap is $250,000. You could put $250k in one account in your name and another in your spouse's name at the same institution. Ally Bank, Goldman Sachs' bank (GS Bank), Synchrony Bank and others all have online savings accounts paying an APY of 1 or 1.05 percent. I have accounts at 3 different online banks.

[Anonymous]

Anonymous wrote:If you just want to park it for a year then I would put in online accounts at 3 different banks. If you know at least some, say 25%, will end up in the market then I would put that % in a Vanguard index fund, like total stock market, ir maybe a life strategy fund.

+1 if you have a general idea that some percent will be long term (you mentioned college funds for sub-2 kids) then that can go into an index fund for now. For house when you return in a few years that should go into online savings.