The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: dbmeyers on September 24, 2018, 02:32:37 PM

Title: where to keep investment money
Post by: dbmeyers on September 24, 2018, 02:32:37 PM
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!
Title: Re: where to keep investment money
Post by: BigHaus89 on September 24, 2018, 02:47:34 PM
You're doing the right thing IMO. Keep it in a high-yield savings account if you want the money to be liquid.
Title: Re: where to keep investment money
Post by: talltexan on September 26, 2018, 12:06:04 PM
The synchrony account might not be the best product. Check the discussion boards for checking accounts that might pay 4% or more for a $25,000 minimum.
Title: Re: where to keep investment money
Post by: elaine amj on September 26, 2018, 01:33:34 PM
The synchrony account might not be the best product. Check the discussion boards for checking accounts that might pay 4% or more for a $25,000 minimum.
Ooooo...tell more. I keep a chunk of liquid cash and currently it's in a pathetic regular bank account.

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Camp Mustache Toronto (Sep 21-23) is where all the cool Mustachians will be gathering for meatball parties,  karaoke in the bell tower and VolleyHockeyBall!

Title: Re: where to keep investment money
Post by: AccidentalMiser on September 26, 2018, 09:20:15 PM
Mayonnaise Jar, behind the pickles.

Seriously, I would also like to know where I can get even 3% on my cash!
Title: Re: where to keep investment money
Post by: jamaicaspanish on September 26, 2018, 10:17:27 PM
Lake Michigan Credit Union
Max Checking
3% interest on up to 15k
Minimal requirements
Title: Re: where to keep investment money
Post by: K-ice on September 26, 2018, 11:06:32 PM
RBC has a 3% e-savings promo for 6 months then it drops to 1%. 
Title: Re: where to keep investment money
Post by: Dances With Fire on September 27, 2018, 06:28:24 AM
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.
Title: Re: where to keep investment money
Post by: COEE on September 27, 2018, 07:22:42 AM
You have a few options:

Generally your money is pretty good in the place you have it at 1.85%.  You can chase a few more bucks if you want with minimal additional risk if you'd like.
Title: Re: where to keep investment money
Post by: elaine amj on September 27, 2018, 02:53:12 PM
Lake Michigan Credit Union
Max Checking
3% interest on up to 15k
Minimal requirements
Sounds pretty good - will add it to the list to check out :)

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Camp Mustache Toronto (Sep 21-23) is where all the cool Mustachians will be gathering for meatball parties,  karaoke in the bell tower and VolleyHockeyBall!