The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: storx on August 20, 2018, 12:34:34 PM
-
Hello All,
Long time member, but not been on here in a few years, recently i have been trying to expand my investing and purchase another rental property, but over the last year i have had no luck with that due to sky high pricing in my area vs rental pricing. I am still a learning investor, but i was curious what are all the ways people store money while they hunt for investments. I have a rather large sum of money from an insurance claim on one of my rental's that burned down recently and i feel its wasted just sitting in a savings account.
If you could, please enlighten me best idea and explain a short reason why...
Only requirement is the funds have to be easily obtainable due to search for another rental in my local area and would need the funds for purchase in a short amount of time if needed.
-
What savings account are you using? Ally's savings account is currently at 1.80% interest and I'm sure there are some options with slightly better returns as well.
-
one year tbill pays 2.44% no state tax, you can sell early if need
-
Vanguards Prime money market is paying 2.07% with a 0.16% expense ratio.
Minimum $3000 investment.
-
Ally has an 11 month "no penalty" CD at 2% - and it really is no penalty. You can withdraw any time after 5(?) days. I've closed a few when the rates went up and opened new ones, quick and easy, at the new rate.
-
Vanguards Prime money market is paying 2.07% with a 0.16% expense ratio.
Minimum $3000 investment.
When I look it up, it says 1.01%. Vmmxx, right?
-
2.09% compound yield:
https://investor.vanguard.com/mutual-funds/profile/VMMXX
(https://investor.vanguard.com/mutual-funds/profile/VMMXX)