I have a situation and I was hoping to get some ideas on how to proceed. I was originally planning on purchasing a home with cash, but due to some circumstances with potential job relocation in the near future, I decided that it was not the best thing to do at this time. I now have a substantial amount of money sitting in a savings account earning roughly 2% APY which I feel is extremely wasteful as far as earning potential. I’m looking for a place that I can store this cash that will allow me to liquidate it quickly if necessary while also earning more than the 2% account that it is currently sitting in. I’m not actively searching for a home as diligently as I was, however, I’m still looking for deals on my free time. In the chance that I find a good deal, I want to be able to act on it quickly rather than be stuck in a situation where my money is tied up. Has anyone else had this situation or something similar or have any insight on what they do with their assets while in between real estate deals? Any help would be greatly appreciated. Thank you!
Anything you do is going to have more short term risk than a cash account. You could buy stocks, bonds, or funds of either on the open market, which are very liquid, but have a lot of short-term price risk. Low interest rates are part of the opportunity cost of wanting that liquidity and downside protection
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