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Learning, Sharing, and Teaching => Investor Alley => Topic started by: mountain dentist on April 20, 2018, 11:56:27 AM

Title: Where to park 70k for <1yr?
Post by: mountain dentist on April 20, 2018, 11:56:27 AM: I am selling my condo next week and will be receiving ~$70,000. I plan to use these funds to purchase a business sometime later this year. Where is the best place to park this kind of money for a handful of months?

Thank you for any comments or ideas
Title: Re: Where to park 70k for <1yr?
Post by: DS on April 20, 2018, 12:05:20 PM: High-yield savings / 6 month CD
Title: Re: Where to park 70k for <1yr?
Post by: ChpBstrd on April 20, 2018, 12:33:53 PM: I'm guessing an online savings account. You might end up paying a fee to exit a CD if the right business deal comes around early. Liquidity is expensive!

I'm assuming any risk is unacceptable. But then again, by buying the business you are getting into something more risky than a stock position!
Title: Re: Where to park 70k for <1yr?
Post by: Another Reader on April 20, 2018, 01:43:32 PM: Treasury bills. Rates are higher and no state income tax. You can buy at the auction through Fidelity, probably the other major brokers as well. Sounds like some laddered 4 week notes possibly mixed with some longer dated notes would work here.
Title: Re: Where to park 70k for <1yr?
Post by: Bill_ on April 20, 2018, 03:39:34 PM: Quote from: Another Reader on April 20, 2018, 01:43:32 PM
Treasury bills. Rates are higher and no state income tax. You can buy at the auction through Fidelity, probably the other major brokers as well. Sounds like some laddered 4 week notes possibly mixed with some longer dated notes would work here.

Agreed, highly liquid, no state tax and generally higher yield than FDIC products right now.
Title: Re: Where to park 70k for <1yr?
Post by: HPstache on April 20, 2018, 03:53:36 PM: I'd be tempted to put in in a CapitalOne 360 Money Market account. Pays 1.5% and has a $400 bonus for depositing over $50K. Comes out to about 2.9% APY.

https://www.doctorofcredit.com/capital-one-200-600-money-market-bonus-requires-deposits-of-10000-100000/
Title: Re: Where to park 70k for <1yr?
Post by: DreamFIRE on April 20, 2018, 04:14:06 PM: VG Prime MM 1.8% compounded yield trending up
Title: Re: Where to park 70k for <1yr?
Post by: Bill_ on April 20, 2018, 04:42:08 PM: Quote from: DreamFIRE on April 20, 2018, 04:14:06 PM
VG Prime MM 1.8% compounded yield trending up

3 month t-bill is 1.8%, 6 month is 2%, no state income tax and no reverse repos
Title: Re: Where to park 70k for <1yr?
Post by: Grande on April 20, 2018, 06:03:30 PM: Quote from: DreamFIRE on April 20, 2018, 04:14:06 PM
VG Prime MM 1.8% compounded yield trending up

yuppers.
Title: Re: Where to park 70k for <1yr?
Post by: Much Fishing to Do on April 21, 2018, 08:12:52 AM: The differences are so little for that amount I'd just park it in a VG MM for ease given I already have a VG account.

When long term CDs were significantly higher I would consider them if you think there is at least a fair chance you will not be using the money. It varies from bank to bank, but some banks' penalty for pulling out of a long term CD early is not that bad and u ending up making out well anyway (Ally Bank one of them). BUt in this interest rate environment I'm guessing just going with MM is the way to go.
Title: Re: Where to park 70k for <1yr?
Post by: acanthurus on April 21, 2018, 01:06:01 PM: Another vote for t-bills. Equal or better yields relative to other things right now, no state level taxes, very liquid. They're cash for rich people.
Title: Re: Where to park 70k for <1yr?
Post by: smallstache on April 21, 2018, 01:57:21 PM: Bitcoin!
Title: Re: Where to park 70k for <1yr?
Post by: MidwestnRich on April 23, 2018, 09:38:10 AM: Quote from: smallstache on April 21, 2018, 01:57:21 PM
Bitcoin!

Lulz
Title: Re: Where to park 70k for <1yr?
Post by: Orca2 on April 23, 2018, 02:00:38 PM: Quote from: Grande on April 20, 2018, 06:03:30 PM
Quote from: DreamFIRE on April 20, 2018, 04:14:06 PM
VG Prime MM 1.8% compounded yield trending up

yuppers.

When you folks are recommending T-bills I'm assuming this is not an Index Fund - but Treasuries directly - which I've not done. How do you do that?
Title: Re: Where to park 70k for <1yr?
Post by: Orca2 on April 24, 2018, 08:53:45 AM: Thank you. And all good suggestions.