Investing account suggestions

[Lee L.]

Hi everyone, 

Where do you all keep your money while it's in limbo. Trying to consider if i should keep my money in a investment account so i can have it sit on the stock market and accrue larger returns while i wait to put a deposit down on a property? It's not quite liquid i get that, but seeing as how you only pay taxes on money you've earned (short term) under a year when you withdraw money out of the stock market after recently having put it in there is that not a good idea? Is this what everyone is doing already and I only think i'm smart for having thought of it? Curious where people are housing their large downpayment pools of money?

[Mike S.]

@Lee Lightfoot

It all depend on the timeframe.

For money short term (less than 6) months, I put some in crypto stable coins that give me a 7 to 10% APY. It has some risks but good return.

For money that I keep for around a year, I am putting money in short term real estate loans usually giving me 8 to 10%.

I would not even consider stock market for anything that I would need in less than two years as while liquid you don’t want to be in a correction when you withdraw and will have to wait it out.

But most of my cash flow is going into an overfunded permanent life insurance policy. It is a very safe, liquid, tax free, asset protected and with a moderate growth. I then borrow against it to reinvest at a low rate while it continues to grow on the full value. I have then my money growing at two places at the same time.