Need some short term investment advice

[Razl]

Check out some online CDs or even money markets. I've been with NetBank for many years. Currently, I earn an APY of 0.74% on my checking (big whoopy but better than the "free checking") and 4.14% on my Money Market, which allows 4 withdrawls per month no fee. I know NetBank and ING both offer 12-month CD that are over 5% APY. Don't be scared by online banks as all the accounts are FDIC protected.

So take your pick, just avoid the loaded fund #@$%! for short-term. You have what's called "a good problem to have"

 

[Scooby]

Quote:

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Couple of questions.

Will you be using 100% of the funds to buy/build? Will you not want to save at least some of that for the long term?

What about retirements? You get $4,000 a piece(you and your spouse) for Roth IRA's.

If it were me, I would make sure I max out those funds for the next few years at least. Since that insurance is tax free, and a Roth is tax free that money would not be taxed for life.

Secondly if you don't expect to use 100% of it on a house I would look at several different investments like growth maybe $10K, small cap stuff maybe $10, and so for. So basically you would be taking $40K of the money as longer term.

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I've been building my retirement fairly well since I was 21. I have a ROTH, 457, government pension and state FF pension. We are going to use some to build a college savings and increase our retirement as well. The $150k was not all that we were fortunate enough to get. We also got about another $100k in other accounts, etc also. Right now, we're just looking at our options.

We want to buy the land within the next 3-6 months and then look things over again. At some point we will sell our current house and move into a rental and at that point build. How much we make of our current house will decide how much of the money we've rcvd that we use.

Thanks for the opinions. It definately helps!!! I didn't realize that the fee wasn't normal.

 

[kc8adu]

http://www.emigrantdirect.com/

 

[Drew99GT]

I'd go with a high yield money market from Capital One or a similar online money market account.............Capital One has a very high (higher than Emigrant Direct, HSBC, ING Direct) Solvency Rating with very similar yields

 

[salesrep]

Scooby,
Lots of good advice here.

From being a licensed professional for 9 years with the largest Wall Street Firms.
Hire a professional. interview a few and get a full portfolio work-up from each. Choose one that you trust given the basic info you glean.
You are not talking chump change here. this is your life's savings, inheritance, and hard work. Unless you are willing to continually monitor your investments , begin learning, spend a lot of time and possibly uncomfortable nights/months worrying about your nest egg... leave it to a pro. Will there fees involved. Yes. That's ok. What is your time and peace of mind worth.
I would not hire the 1st guy you mentioned if for no other reason that he recommended the wrong investmnet for short term mony, while the American balance fund is a very good fund, a 2-3 year time frame is not its design and your value could go south,he is either an idiot or unscrupulous.
The keys are the usual buzz words.
Asset allocation ( percent in cash, bond, stocks ) and the percentages of each AND the percentages within each leading us to diversification. What percent is needed short term, mid term, long term. Tax considerations come into play as well. Do you want to leave some for your kids? living will? trust?
Now is the time to do an entire financial plan with a seasoned advisor.

 

[Lex94]

Short term Treasury bills at www.treasurydirect.gov the 4-week bill is paying 5.17% and is State tax free. These t-bills also have zero risk. You can also setup your TreasuryDirect account to automatically withhold Fed taxes if you choose.

http://www.treasurydirect.gov/RI/OFBills

For a full-service bank I go with Capital One FSB.

www.bankrate.com