Hi All,
Thanks in advance for the usual friendly and generous help everyone shares!
My partner and I are planning to buy a house as a shared investment, and have saved the appropriate amount (about 100K) for a downpayment on a multi-unit in the area. My very mustachian partner has saved 50K through her frugal living and great savings rate, but *gulp* has it sitting in a checking account. 25K of it receives 1.78% APY, the rest, 0%.
Yes, I consider this an emergency, and now so does she, but we're a little stymied with the best place to put this money until then. As we've discussed, it's risky to invest it since it's likely we'll pull it out in a year or less to buy.
We need to wait a year to buy a house because I'm self-employed, and my rental and self-employment income needs 2 years on the tax returns, so my debt-income ratio will look too low until I can factor my strong current income in 2015. She is currently unemployed before she begins nursing school, and in a year will likely be employed as an RN. In a year, we'll both have a bigger stash and qualify for a loan that we can't get now (we tried).
What would you do? Here's what we're considering, but I'd love some help:
1. Put it in a money market
2. Put it in index, run the risk
3. Don't buy a house (fine with us, I own already) and invest in something else with a good return
4. Other??
Thanks for your help!