Investing cash in a saving / money market account

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Forum -> Household Management -> Finances

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amother

Wed, Sep 20 2023, 8:54 pm

anyone have recommendations of where to put 150k ? bh we have some extra money and would like a safe investment, something we can withdraw if needed.

Cheiny

Wed, Sep 20 2023, 9:46 pm

amother OP wrote:

anyone have recommendations of where to put 150k ? bh we have some extra money and would like a safe investment, something we can withdraw if needed.

CitBank is offering about 5% interest and no penalty to withdraw…

amother

Natural

Wed, Sep 20 2023, 9:59 pm

Cheiny wrote:

CitBank is offering about 5% interest and no penalty to withdraw…

This.
This is where we keep most of our $.

(We have some smaller amounts in smaller ventures ie more risk but 10k here and 10k there)

amother

Wed, Sep 20 2023, 10:00 pm

is this the highest yield now?

amother

Daffodil

Wed, Sep 20 2023, 10:01 pm

You can buy a house for that price and have a monthly income. And then you can always sell later when you need the money.

amother

Canary

Wed, Sep 20 2023, 10:02 pm

You can get T-bills. They’re exempt from state taxes.

amother

Wed, Sep 20 2023, 10:04 pm

amother Canary wrote:

You can get T-bills

what's the rate on that?

ShaniF

Wed, Sep 20 2023, 10:06 pm

amother Daffodil wrote:

You can buy a house for that price and have a monthly income. And then you can always sell later when you need the money.

Where do you live that you can buy a house for that price??

amother

Papaya

Wed, Sep 20 2023, 10:08 pm

ShaniF wrote:

Where do you live that you can buy a house for that price??

No need to buy a house in your area. You can buy houses in Cleveland or Indianapolis or anywhere really cheap and rent it out.

amother

Wed, Sep 20 2023, 10:11 pm

amother Papaya wrote:

No need to buy a house in your area. You can buy houses in Cleveland or Indianapolis or anywhere really cheap and rent it out.

yes but there's always a risk involved with this.. and management required. would like a safer easier option for now until we are ready to put it somewhere else...

amother

Papaya

Wed, Sep 20 2023, 10:13 pm

amother OP wrote:

yes but there's always a risk involved with this.. and management required. would like a safer easier option for now until we are ready to put it somewhere else...

Theres a small risk but the return is way bigger. But I hear you, if it doesnt work for you should probably do something very safe

amother

Daffodil

Wed, Sep 20 2023, 10:14 pm

ShaniF wrote:

Where do you live that you can buy a house for that price??

Yes I’m talking about investments, if you do it smartly it’s definitely worth it and has very little risks. The market has only gone up. There are a ton in the NJ area.

ShaniF

Wed, Sep 20 2023, 10:25 pm

amother Daffodil wrote:

Yes I’m talking about investments, if you do it smartly it’s definitely worth it and has very little risks. The market has only gone up. There are a ton in the NJ area.

True. There's also the managing part of it though, even if you outsource that it's still something you have to be on top of

amother

Wed, Sep 20 2023, 10:26 pm

ShaniF wrote:

True. There's also the managing part of it though, even if you outsource that it's still something you have to be on top of

yes we don't want to do that right now. just want a savings account to hold our money over for now

amother

Navyblue

Wed, Sep 20 2023, 10:31 pm

For someone with only $150,000 you don't want to buy a cheap house to rent out.

They need to have a liquid asset because part of that should be thought of as emergency funds.

A house is never liquid - it has expenses including maintenance and property taxes.

If you need to sell, it costs money as you would have to pay the broker a commission and it might sit in the market.

If you are not planning to be an in person landlord you need to pay a management company 10% to manage it.

Also I can't begin to imagine who is renting a $150,000 home - to me that alone would be problematic.

Cheiny

Wed, Sep 20 2023, 10:43 pm

ShaniF wrote:

True. There's also the managing part of it though, even if you outsource that it's still something you have to be on top of

Not to mention the headaches and stress involved many times.

amother

Seafoam

Wed, Sep 20 2023, 11:19 pm

amother Navyblue wrote:

I assumed she meant to use that toward the down payment. The rental income covers the mortgage plus is extra income, while the property appreciates over time.

If the house is $550 she can put down $110 and reserve the rest. Or get fancy and buy a distressed property, a property at auction, etc. ETA I'm not recommending this for OP one way or the other. Just explaining how it can be done.

amother

Wed, Sep 20 2023, 11:52 pm

yes we discussed leveraging it but for now would like to do a savings account or maybe a CD if the rates higher?

amother

Thu, Sep 21 2023, 7:57 am

for those that have cit bank. how easy is it to start the account and transfer money back and forth from a regular checking account ?

ShaniF

Thu, Sep 21 2023, 9:08 am

Marcus by Goldman Sachs has 4.40% and it keeps going up. Really easy to set up an account and transfer from other accounts

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