I'll be selling my house and get a 500K check. The house is paid off. We will use the money to buy another house in 2 years and rent in the meantime. Where is the best place to put the money for 2 years?
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Do you plan on paying cash for the house or would you consider a mortgage? I assume you do not have other high interest debt and assume you are fully funding your retirement accounts.
We are still near historic mortgage rate lows. If I were in your shoes, I would put about $150,000 into a high yield savings account so it will be there for as a down payment for the next purchase. I would invest the rest in a taxable account (something like a 3-fund portfolio).
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wow, need a lot more information to answer a question like this, i think.
generally if you need the money in two years, market is not advised. if you look at threads, there is a lot of uncertainty about market right now in particular.
mortgages are still cheap but no idea in two years where they will be. if you don't mind taking some risk, and having a mortgage should things not go as anticipated, index funds may be reasonable. however, look at all the threads asking if we have the stomach for 50% reduction.
i say all the money goes into high rate cd or savings account given the (limited) information you have provided.
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No mortgage. No debt. Financially independent nest egg with portfolio that needs no attention.
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hmm. maybe you should be telling us where the rest of us should be putting our money.
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If you are in the top tax bracket and will be needing the money in 2 years, go for tax free muni's. The returns should be around 3% tax free.
The even more conservative route is Ally Bank or something similar at 1.5% interest, but it is fully taxable so not much earnings left there after tax if you are still employed and not retired.
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