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Need advice.
I just sold my house and am currently renting. That said I知 not sure what or where I will go next. I知 sitting on some money that I知 not sure what I should do with it.
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Might add I am 52 and have no debt. And currently single.
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Are you currently looking to buy again? If you plan on buying a new house with it in the next year or so, cash is king. Either a high interest savings account or a money market account.
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The housing prices here in Wisconsin have turned around and going down. If the interest rates keep going up the prices will continue to drop. High yield savings account and watch for the bargains to start popping up.
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What Kind of rates are you guys seeing with high interest savings account? what I’m seeing is only about 1%
Last edited by mikes733; 10-29-2018 at 06:39 PM.
Reason: Spelling
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You can buy some short term treasury bonds. They 3 month ones were about 2.5 or somewhere in that range (not sure where they are today). If you buy them for a couple of months then you can roll them over (even into 1 month bonds) so you will have access to them. I was looking at options and this was the best I could find for short term parking. I think there are some money market funds that are all treasuries as well. You can look at those but make sure it is very safe (i.e all treasuries no agency stuff etc.)
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Ally currently has savings account around 1.8%
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Ally has a 2.10% 11 month CD for $25K and above that's a no penalty CD. You cannot add more to it, but you can withdraw $ from it. It is a safe place to park your money until you decide what you're going to use the money.
Stock market's jumping around right now--kinda scary.
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When you really don't know what to do ... CDs.
Current rates shown below. Ladder in $10-25k increments.
Maturities every 1-2 months, depending on values.
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Those look like some good rates for these times. Do any of you folks use the virtual banks like Ally, or? I guess I’m old fashioned and like to talk face to face. I’m getting older and seriously thinking of getting completely out of the stocks and bonds into CD’s. I was going to go into Vanguard or Fidelity, but I just don’t want the hassle of starting with another broker.
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Goldman Sachs is a good option for some liquid money accounts. $1 minimum to earn interest and link well with local banks (withdrawals from these accounts have posted the next day to local banks when needed). It's a good option to house things like Homeowner's Insurance, Property Taxes, Small Business Quarterly Estimates, Emergency Fund, and Known Annual Expenses in separate accounts. Last year at this time accounts were earning 1.8% APR and are now up to 2.05% as of last week. They take 15 minutes to open online and will have funds as fast as your current bank will release them. A maximum of 6 withdrawals/transfers are allowed per month and 1,000,000 maximum per account. Current 12-month CD rate is 2.55% 11 month No Penalty is 2.10% 7 month 2.05%
Congrats on selling your house and especially on carrying no debt! Take your time in finding a home if you're comfortable now as housing is beginning to correct/come down in some markets. Patience is your ally at this time!
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Goldman Sachs is who I have my online account with. They have been increasing their rates every few months this year. Up to 2.05% as of today
https://www.marcus.com/us/en/savings
The problem with keeping your money at a brick and motor bank is for the most part you won't get the rate you could vs online only.
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I am doing very well at our local credit union, plus I can walk there. I’m a small town guy. I still remember Goldman Sachs from 2008, plus Lehman Brothers.
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If you are using a money market mutual fund to get higher interest on cash you should be familiar with what they are holding. Some that pay higher rates may not be holding safe treasuries. Some could hold agencies or even very short term corporate stuff. These can break the buck and did during the financial crisis so if you are very conservative make sure you can verify what they have. If the world goes to hell in a handbasket and the holdings become illiquid due to lack of buyers then you could have to wait to redeem. Not saying anything like this is going to happen again just make sure you do your due diligence. Read the prospectus.
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Thanks all for the guidance!!!
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