Author Topic: Where to stash $100k for a year?  (Read 552 times)

kwarden13

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Where to stash $100k for a year?
« on: December 07, 2017, 09:29:02 AM »
My mom is selling her home and not buying right away. She will have about $100k after the sale and I am trying to figure out where to put it short term. She is older so not really looking into stocks or indexes.

Also, not sure about a CD because those don't seem to make enough interest to tie up money. Any thoughts?

rubybeth

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Re: Where to stash $100k for a year?
« Reply #1 on: December 07, 2017, 11:18:47 AM »
To make more money, there's more risk. If more risk is unacceptable, you have to look at the best interest with a money market account, savings account, or CD. I'm curious what others will say.
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HipGnosis

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Re: Where to stash $100k for a year?
« Reply #2 on: December 07, 2017, 12:01:38 PM »
Personally; my money is in ITOT (an Ishares total market ETF) and I don't plan on ever changing.

If she (or is it you?) is adverse to any 'investment'; I'd go with a high yield on-line savings account - possibly multiple accounts as I believe (but I'm not well informed on them per above) some have a cap on how much can get the best rate(s).
 

kwarden13

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Re: Where to stash $100k for a year?
« Reply #3 on: December 07, 2017, 12:37:51 PM »
She does not want to have the money locked in anywhere. Also, I don't want to tell her to do something 'high risk' and then never hear the end of it.

iowajes

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Re: Where to stash $100k for a year?
« Reply #4 on: December 07, 2017, 01:41:28 PM »
If she doesn't want it locked in anywhere, then you can't do a CD.
If she doesn't want risk, you really can't invest it.

Stick it in a bank account.  She probably won't believe you when you tell her she is losing money to inflation. But it will be safe there.

rubybeth

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Re: Where to stash $100k for a year?
« Reply #5 on: December 07, 2017, 01:43:25 PM »
Best online savings account rates right now are with Ally and Capital One 360.
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terran

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Re: Where to stash $100k for a year?
« Reply #6 on: December 07, 2017, 04:21:16 PM »
How much difference will an extra $1250-1500 make in her life? If it will make a difference help her set up an online savings account or no penalty CD. If it wont make a difference have her put it in whatever bank account she already has.

kwarden13

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Re: Where to stash $100k for a year?
« Reply #7 on: December 07, 2017, 04:23:34 PM »
Well she said I could keep the money it makes. However, I would not want to lose money because I do not want to owe her.

terran

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Re: Where to stash $100k for a year?
« Reply #8 on: December 07, 2017, 04:30:25 PM »
Well she said I could keep the money it makes. However, I would not want to lose money because I do not want to owe her.

In that case it sounds like she doesn't need it. So is it worth it to you to make $1250-1500 to go through the hassle of setting up an online savings or CD in her name, transferring it in and out and answering her questions about it?

Make sure you have it back in her local bank account well before she's ready to close on a house. The attorney will probably tell her the day before exactly how much she needs to bring to closing as a bank check and getting a bank check from an online bank takes at least a couple days, so better to be able to just walk in to a local bank.

CheapScholar

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Re: Where to stash $100k for a year?
« Reply #9 on: December 07, 2017, 05:08:07 PM »
Go all in on Bitcoin.

BigHaus89

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Re: Where to stash $100k for a year?
« Reply #10 on: December 07, 2017, 05:23:35 PM »
Ally Bank savings account. Current rate is 1.25%.

rubybeth

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Re: Where to stash $100k for a year?
« Reply #11 on: December 08, 2017, 06:43:40 AM »
Ally Bank savings account. Current rate is 1.25%.

Capital One 360 has 1.30%: https://www.capitalone.com/bank/open-an-account/
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