Short term investment for real estate purchase
I’m newly divorced and sold our home. Will rent for a year before another purchase. Where should I put the proceeds to get a decent return and access if this $ in 8-9 months.
I’m 63. Is it better to put more $ down on next purchase or take $ from savings to decrease my mortgage.
Terry Says
Well, for starters, you could buy 6-month Treasury bills to get the highest safe rate. And when they mature, have the money drop back into a bank money market account if you’re about to buy a new home in a couple of months. Or if your time horizon is longer, you could be rolling the money over in T-bills for another 3 or 6 months. Read this;
https://www.terrysavage.com/t-bills-beat-cds-2/
But the real issue here is getting a holistic financial plan at this inflection point in your life. This is the time to be looking at multiple issues, not only your next residence — but your retirement income plans, your need for an estate plan, tax issues for the future, etc.
There’s an army of financial “planners” out there trying to get at your money! I recommend you use the Wealthramp service that matches you with carefully vetted, fee-only, FIDUCIARY planners. Here’s a link to the Wealthramp information on my website. You know, as always, that I get absolutely nothing out of this recommendation except the knowledge that you will be in good hands!
