I just sold my house and it is going to be a while before we build. By a while I mean we are building a shop and living there while we pick out plans and build (6-18 months.) Any advice on where I could park some substantial money while waiting to build? Looking to make some but also don’t want to lose principal.
OT: Investing House Proceeds
- Thread starter berettadawg
- Start date
This or some other variation like a money market or high yield checking. No other option is reasonable in a time frame you are talking about. The little tiny interest earned on a CD is not worth the challenge of having it locked up. When you are building, timing is a *****.
Now wait for someone to swoop in and offer to meet with you if you are in the (insert city name) area.**
Honestly with the timeline you are looking at you aren’t going to earn a ton on anything that allows you to withdraw penalty free. Your best bet is finding a local bank or credit union desperate for deposits or celebrating a milestone and you might get 2.00% for a year. If not, check online. I mean if it’s 200K, $4,000 isn’t chump change for a year investment.
If you need it that fast, definitely a saving account. Online banks having been paying the highest rate. Ally has been around 1.5%. That is much better than my Credit Union.
Cmon. Live a little. Goldstrike Casino and put it on red.
Seriously though.. you are probably not going to put it anywhere right now that is going to earn 5 or 6 percent that is going to leave it free for you to immediately withdraw. Look online for some higher yield fdic insured accounts
Seriously though.. you are probably not going to put it anywhere right now that is going to earn 5 or 6 percent that is going to leave it free for you to immediately withdraw. Look online for some higher yield fdic insured accounts
I sold my house and parked the money in an American Express Bank High Yield Savings Account which is paying 1.45%. Very easy to do and transfer the money on AmEx's web sight. I can get to the money when ever I want to.
Most of the advice in this thread is good. Find the highest yielding savings account or money market fund you can and put it there. You could expect about 1.5%. Anything else and you may make a good bit more money, but you could also lose 30% or so of what you're starting with.
https://www.bankrate.com/banking/savings/rates/
https://www.bankrate.com/banking/savings/rates/
If you have the knowledge and plan to be hands-on with building your house, consider using that time to shop around for building materials for the new house. You can save thousands by being opportunistic and buying materials, supplies, and appliances when you find a great deal. If you are actively looking and have cash in hand, there will be times where you can buy things at a great discount.
When I was building my house a few years back, there was an earthquake in Chile that affected the price of OSB, plywood, and moldings. For example, A sheet of OSB sheathing went from about $8 to $16 each for several months. Fortunately, I missed it, for the most part.
When I was building my house a few years back, there was an earthquake in Chile that affected the price of OSB, plywood, and moldings. For example, A sheet of OSB sheathing went from about $8 to $16 each for several months. Fortunately, I missed it, for the most part.
everything these people said. another option is in a brokerage account with a money market sweep. ours are paying 1.05%