Short Term Cash (1-2yr)

[jzb11]

Hello,

I was curious what you all do with cash that you may need in a year or two. I am currently overseas on a business assignment until the end of this year and possibly all of next year as well. My expenses are low, and I'm earning extra income as well as a result of being here.

Anyway I'm not entirely sure what to do with the money I'm saving. I recently bought $20K of APPL and 10K of TWTR (My positions: APPL is up 20%, TWTR 42% - I know a lot about consumer electronics and tech in general, this was an educated decision, not a gamble). I'm not sure what to do with the rest of my cash as it accumulates in my bank account. 

I am currently not maxing my SEP (working as a contractor) because I earn an income tax exemption by being overseas. As a result tax exempt investing doesn't really offer any benefit and I prefer to have control over the funds now vs the restrictions of a tax exempt account.

What do you all think/suggest?

My hope when I return to the USA is to purchase a foreclosed property in the Midwest cash (30-50K if that's possible).

x

Anyway just wanted to pick your brains.

[Frankies Girl]

If you need to use it in a few years, don't put it into anything volatile (like stocks). That is too short a time line and risks losing a large chunk in the short term. Look for the best interest rate on a boring old savings account you can find and park it there. Or even a 1-2 year CD if the rates are slightly better.

[neo von retorch]

SmartyPig.com for 1% "goal-oriented" savings accounts. (I like that they make it "difficult" to get your money out, i.e. you either have to make a new goal, transfer some of it, close that goal or close the entire original goal. So no "skimming" from your savings.)

gecapitalbank.com/savings-products/online-savings.html
Just started using GE Capital Bank Online Savings since I've taken over tax/insurance payments for my house rather than using my lender's escrow. Currently 0.95% interest.