So we received the balance of our escrow from the bank the other day. Since this is already earmarked for annual property taxes and insurance, we were thinking of putting it in a short term, low risk investment vehicle that would at least give us a return above inflation. My first thought was TIPS, but was wondering if there might be anything better. Any suggestions?
Also, how do those of you who pay our property taxes handle savings? Do you treat it as a monthly expense, and let it build up in a savings or checking account? Or put the money in a higher return but short term investment vehicle?
I should say that Milwaukee County and City Property taxes are kinda high, so it'll be around $3,500 invested.