We are selling a home soon and will have about $165,000 in cash after the sale. I'd like to invest that money, then use the earnings to pay the monthly mortgage on the next house. With a mortgage rate around 3.75%, I'd rather earn money on that cash than use it to pay off or down the next house. In some months, we might not even touch the invested money - just use normal income to pay the full mortgage. It's more of a mental thing - "Hey look! If we invest that cash at X%, we could withdrawal $Y every month and our remaining mortgage would only be $200!"
I have a Betterment account but look at that as long-term saving/investing.
What's a good way to invest if you want to make monthly withdrawals or even just one annual withdrawal? I want to minimize the tax impact but the thought of earning 1% in a savings account is just gross.
(I know we'll pay taxes on the investment earnings but we'll also have a deduction from the mortgage interest. I still work and so am a fan of deductions, so long as my investment is out-earning the cost of the mortgage interest. I also know having a mortgage at all is kind of anti-Mustachian but since I'm still working and enjoy what I do, I think this is the right plan for us.)
Thanks for any thoughts!
Edit: Or is the whole thing crazy and we should just use the equity towards the mortgage on the next house, even though the interest rate is low?