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.