Author Topic: Where to keep RE investing funds?  (Read 1655 times)

Tumbler

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Where to keep RE investing funds?
« on: March 25, 2016, 10:01:11 AM »
I'm planning on purchasing a 2nd investment property (2-4 unit multi family) by mid 2017. Currently, these funds sit in a Chase savings account with negligible interest. I'm thinking about spreading these funds out across a Roth IRA and high interest online savings accounts (I've read several threads about these). Any other suggestions? I like the idea of dropping the money in a Roth so I'm not taxed on any growth. Or should I just let the money sit, realizing it's not growing but at least it's easily accessible 12-18 months from now?

neo von retorch

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Re: Where to keep RE investing funds?
« Reply #1 on: March 25, 2016, 10:05:04 AM »
As someone who put some money into a taxable investment fund before purchasing a house, and being lucky enough to only lose about $100... you have zero ability to predict what the equities do over the next 12-18 months, so I do not recommend you purchase any. Stick with 1% interest savings (or 5% if you do one of those trickier accounts.)

capitalninja

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Re: Where to keep RE investing funds?
« Reply #2 on: March 25, 2016, 03:01:00 PM »
As someone who put some money into a taxable investment fund before purchasing a house, and being lucky enough to only lose about $100... you have zero ability to predict what the equities do over the next 12-18 months, so I do not recommend you purchase any. Stick with 1% interest savings (or 5% if you do one of those trickier accounts.)

Great advice.

GrowingTheGreen

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Re: Where to keep RE investing funds?
« Reply #3 on: March 26, 2016, 10:25:12 AM »
but at least it's easily accessible 12-18 months from now?

You nailed it in that phrase.  12 months is soon.  Really soon.  If it were me, I'd be in a high-yield CD.  Use bankrate.com to find an online bank with high yield.

seattlecyclone

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Re: Where to keep RE investing funds?
« Reply #4 on: March 26, 2016, 10:31:18 AM »
but at least it's easily accessible 12-18 months from now?

You nailed it in that phrase.  12 months is soon.  Really soon.  If it were me, I'd be in a high-yield CD.  Use bankrate.com to find an online bank with high yield.

A CD is a good option. You may also consider series I savings bonds for some of the cash as long as you're sure you won't need the money for 12 months. Current interest rate is 1.64% and adjusts for inflation twice yearly.