Short term investment ideas.

[Daserop]

I recently sold my property and moved in with girlfriend, who has a house. Due to the sale, as well as some additional money already in a savings, I have a large sum of money that I don't want to just be sitting in a saving account. Barring something extreme (i.e. unforeseen medical expenses) I don't need access to this money for a short while (1 to 3 years).

I'm looking for other CFers thoughts and ideas on what to do with this money. My initial thought was a short term CD. Obviously, I could put some into my Roth and do some investing, but given how the stock market is behaving, I'm leery about investing in stocks. Thoughts? Also, all of my loans are paid off (car, student, etc.)

 

[BCClone]

I recently sold my property and moved in with girlfriend, who has a house. Due to the sale, as well as some additional money in savings, I have a large sum of money that I don't want to just be sitting in a saving account. Barring something extreme (i.e. unforseen medical expenses) I don't need access to this money for a short while (1 to 3 years).

I'm looking for other CFers thoughts and ideas on what to do with this money. My initial thought was a short term CD. Thoughts? Also, all of my loans are paid off (car, student, etc.)

Due to the bolded part, keep it in savings and highly liquid.

 

[SCNCY]

CD or money market would seem like a good choice. You may also want to explore a bond fund to invest in so you get monthly coupon payments.

 

[Daserop]

Due to the bolded part, keep it in savings and highly liquid.

I thought about that as well, but I hate the idea of just leaving it all in there.

 

[CycloneDaddy]

Head over to the U of I Credit Union and get a CD.

 

[BCClone]

I thought about that as well, but I hate the idea of just leaving it all in there.

I wouldn't get too crazy with that. Maybe a money market or a CD. Too short of a term to gamble too much with it.

 

[ISUCyclones2015]

Short AAPL

 

[RonBurgundy]

Did you have a gain on the sale of your property? Might want to look at rolling it into another property to avoid the taxes. I have some rental properties that are doing quite well. May not fit your definition of short-term, but also generates nice income during that period.

 

[khardbored]

Almost all brokerage accounts now-a-days let you buy a brokerage CD.

Still a CD, still FDIC insured, but you can choose from thousands around the country. There are a few very minor caveats.

 

[Gunnerclone]

Buy Gold & Silver.

 

[BCClone]

Did you have a gain on the sale of your property? Might want to look at rolling it into another property to avoid the taxes. I have some rental properties that are doing quite well. May not fit your definition of short-term, but also generates nice income during that period.

Sounds like residence. Do they still have the 250k exemption?

 

[Daserop]

Never considered / thought about a money market. Dumb question. To get a CD with a bank / credit union, does one need to have an account with said establishment?

 

[CascadeClone]

Putting some in a Roth is a good idea, if there's enough.

Unfortunately, you aren't going to get much better return than a CD or MM on anything decently liquid. I'd hunt around for the best CD specials you can find, maybe split the $ up into a 12 month and a 36 month; might be able to get 2.5% and 4% maybe?

Just make sure you keep enough in the 12 month to cover 6 months rent and/or down pmt on a house if you get "evicted". Losing a quarter's worth of interest on the 12 month won't be too big a loss in that event.

 

[BCClone]

Never considered / thought about a money market. Dumb question. To get a CD with a bank / credit union, does one need to have an account with said establishment?

That would be your account.

 

[RonBurgundy]

Sounds like residence. Do they still have the 250k exemption?

Oh, maybe. I thought he meant land sale.

 

[BCClone]

Oh, maybe. I thought he meant land sale.

I assumed by when he said he moved in with gf and now is "working" off his rent.

Btw, if my experience says anything, he needs to understand he is now fully living by her rules now. There is no negotiating, its her way.

 

[KnappShack]

Beanie Babies. There's a market ready to rally!

 

[Daserop]

Did you have a gain on the sale of your property? Might want to look at rolling it into another property to avoid the taxes. I have some rental properties that are doing quite well. May not fit your definition of short-term, but also generates nice income during that period.

Yes, I did have a gain on the sale of the property and I'll definitely need to consider the taxes on it. My parents had rental properties growing up, which I helped with. While you might get good renters, my parent's got enough bad renters to put a bad taste in my mouth. I'm not considering that as an options personally. Still a goo thought though and appreciated!

 

[Daserop]

Also, this isn't my first rodeo. Been through a divorced already. I'm well aware of what can happen. I'm making sure I'm okay if things go south.

 

[Daserop]

Everyone, thanks for all the input. Looks like I was heading in the right direction with looking into CD's. However, I'll definitely take a look into money markets.