Where to park home equity while looking for another home

[Anonymous]

We are considering selling our house to downsize. No kids; too much space; doesn't make sense any more. Expect we will rent again (odd I know) to see how we do with a smaller space for about a year. Interested in hearing thoughts on where to park our money. Will check with a professional too, but thought it would be interesting to hear thoughts on here since people are relatively sophisticated.

[Anonymous]

I don’t understand your question. Not sophisticated enough, I guess!

[Anonymous]

Seems simple. If I net $200k on my house sale, where do I park it for the year we are renting? I guess I could go nuts and buy a new 991 Porsche Turbo, but that seems like a bad idea .

[Anonymous]

Anonymous wrote:Seems simple. If I net $200k on my house sale, where do I park it for the year we are renting? I guess I could go nuts and buy a new 991 Porsche Turbo, but that seems like a bad idea .

Probably a 6-month CD. After it matures, just keep it in a money market account, since I'm assuming you'll want to use it as a down payment on your next house.

[Anonymous]

Interest rates are going up. High yield savings account. Ally is a good choice, or check best yield on Bankrate.

[Anonymous]

Look on bankrate. Capital One 360's Money Market pays pretty good rates for amounts over $100k. That's what I use.

[Anonymous]

Anonymous wrote:Seems simple. If I net $200k on my house sale, where do I park it for the year we are renting? I guess I could go nuts and buy a new 991 Porsche Turbo, but that seems like a bad idea .

Well, if you had usd a better term, like profit, then your question would have been more understandable.

[Anonymous]

Marcus savings account by Goldman Sachs, pays 1.7%.

[Anonymous]

I'd probably invest 50/50 bond index fund and stock index fund. There is a small chance you might lose some money, but if after 1 year you only had $195,000 instead of $200,000 that wouldn't be the end of the world.

[Anonymous]

12 month CD

[Anonymous]

MGM National Harbour, allways bet on black.

[Anonymous]

We are in a similar position and have the money for our next house in a Vanguard Money Market Fund. VMMXX. I'm glad we did that instead of a 6 month CD because we may end up buying sooner than expected.

[Anonymous]

We are in a similar position and ended up putting the money for our next house in Vanguard Money Market Fund (VMMXX). I'm glad we did that instead of a 6-month or one year CD because it looks like we will end up buying sooner than expected.

[Anonymous]

Anonymous wrote:MGM National Harbour, always bet on black.

This!

[Anonymous]

You're talking about six months to a year. Something safe. The details of whether that's a money market fund, a CD, or a savings account do not matter.