Author Topic: where to keep investment money  (Read 1445 times)

dbmeyers

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where to keep investment money
« on: September 24, 2018, 02:32:37 PM »
Hello all,

My wife and recently came into some cash and for now just opened a Synchrony bank account getting 1.85% interest. 

I'm a full-time Firefighter/Paramedic...and I can retire in 7 years if I want with a pension.  I also have been working on getting my realtor license and have a little experience in investing in real estate.  I want to be able to tap into this money when needed for potential real estate deals...but I don't know if I should leave it in this higher interest saving account or put it in a fairly conservative fund through a fidelity or vanguard account?  I would like this to be pretty liquid tho....and I understand I will pay tax on any gains I would make if I were to withdraw on it.  Am I way off base here? 

Thanks!

BigHaus89

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Re: where to keep investment money
« Reply #1 on: September 24, 2018, 02:47:34 PM »
You're doing the right thing IMO. Keep it in a high-yield savings account if you want the money to be liquid.

talltexan

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Re: where to keep investment money
« Reply #2 on: September 26, 2018, 12:06:04 PM »
The synchrony account might not be the best product. Check the discussion boards for checking accounts that might pay 4% or more for a $25,000 minimum.

elaine amj

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Re: where to keep investment money
« Reply #3 on: September 26, 2018, 01:33:34 PM »
The synchrony account might not be the best product. Check the discussion boards for checking accounts that might pay 4% or more for a $25,000 minimum.
Ooooo...tell more. I keep a chunk of liquid cash and currently it's in a pathetic regular bank account.

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AccidentalMiser

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Re: where to keep investment money
« Reply #4 on: September 26, 2018, 09:20:15 PM »
Mayonnaise Jar, behind the pickles.

Seriously, I would also like to know where I can get even 3% on my cash!

jamaicaspanish

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Re: where to keep investment money
« Reply #5 on: September 26, 2018, 10:17:27 PM »
Lake Michigan Credit Union
Max Checking
3% interest on up to 15k
Minimal requirements

K-ice

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Re: where to keep investment money
« Reply #6 on: September 26, 2018, 11:06:32 PM »
RBC has a 3% e-savings promo for 6 months then it drops to 1%. 

Dances With Fire

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Re: where to keep investment money
« Reply #7 on: September 27, 2018, 06:28:24 AM »
Hello all,

My wife and recently came into some cash and for now just opened a Synchrony bank account getting 1.85% interest. 

I'm a full-time Firefighter/Paramedic...and I can retire in 7 years if I want with a pension.  I also have been working on getting my realtor license and have a little experience in investing in real estate.  I want to be able to tap into this money when needed for potential real estate deals...but I don't know if I should leave it in this higher interest saving account or put it in a fairly conservative fund through a fidelity or vanguard account?  I would like this to be pretty liquid tho....and I understand I will pay tax on any gains I would make if I were to withdraw on it.  Am I way off base here? 

Thanks!

Looking at the (markets) as a whole, be it stocks, bonds, or real estate 2008 comes to mind. Right when houses on my block were selling at a huge discount the stock market was also taking a huge hit. My point is that at that moment CASH was king and those few investors who had the cash on hand to close those deals quickly made great profits. Either re-selling or as rentals.

We may (my hope) is that we never, ever see a financial crisis like that again. Too many people that I know got hurt and some never recovered completely. (My brother lost his house.)

However, there will be times when you see a deal and you will be in a position to buy. Also, I would say that there is nothing wrong with doing both. Short term cash for those deals as well as funds earmarked for intermediate term investing. Good Luck.

COEE

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Re: where to keep investment money
« Reply #8 on: September 27, 2018, 07:22:42 AM »
You have a few options:
  • Savings Accounts:  Most of the bigger online banks are returning 1.85% APY.  Without jumping through hoops each month.  FDIC for up to $250k/account.  All earnings are taxed.
  • Money Market funds: Available through your broker.  Yields (or equivalent yields, if using non-taxable) around 2% right now.  You can generally have your money the next day.  Taxable and Non-taxable options.  Not insured at all.
  • 4-week Tbills: The last auction yield was 2.133% APY.  Minimum purchase is a $100 note up to like $5M or something like that.  Purchases are backed by the US government.  All earnings are not taxed at the state and local level.  Yields are better with longer notes (say a 1 year note - 2.563% APY), and they can be bought or sold at any time on the open market through a broker.  You could lose some of your principle if interest rates continue to climb and you need to sell before the time period is up.  That's why I'm suggesting the 4-week bills.
  • I generally don't support CD's or the super high interest rate savings accounts because there are so many games associated with them.

Generally your money is pretty good in the place you have it at 1.85%.  You can chase a few more bucks if you want with minimal additional risk if you'd like.

elaine amj

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Re: where to keep investment money
« Reply #9 on: September 27, 2018, 02:53:12 PM »
Lake Michigan Credit Union
Max Checking
3% interest on up to 15k
Minimal requirements
Sounds pretty good - will add it to the list to check out :)

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Camp Mustache Toronto (Sep 21-23) is where all the cool Mustachians will be gathering for meatball parties,  karaoke in the bell tower and VolleyHockeyBall!