What to do with 1 million cash for 6 months?

What to do with 1 million cash for 6 months?

Investor · Carolina Beach, NC · Member since 2018 · 188 posts · 377 votes

Just had a call from a friend and future partner who is under contract to sell a small boutique hotel and a triplex. After taxes he’ll be sitting on 1 mm in cash, and there is probably 6 months before the next deal that we take on. What do you do with a million in cash for 6 months? Stock market is obviously out.  Unfortunately there are not very good options for short term cash. Interest rates were cut in light of coronavirus by 75%. Keeping money in cash is probably the safest thing you can do only because investing in bonds right now is a complete crapshoot. CDs are the safest option, but there has to be a better option.  Short term hard money lending?? Maybe for a couple hundred, but 1 mm is too much to underwrite.  What would you do?

1Reply
17 views

3 Replies

Jump to latestLatest
  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    For six months I'm probably doing a high interest savings account that hasn't been cut yet like Ally bank or something like their no risk CD. I'd probably stay away from money market accounts just in case they break the buck again, although I think they have more legislation in place to prevent that. It will be tough to find a short term spot for HML that will be willing to guarantee to pay back in 6 months.

  • Investor · Carolina Beach, NC · Member since 2018 · 188 posts · 377 votes
    6y

    Thanks Aaron, appreciate the intelligent analysis!

  • Investor · Cannon Falls, MN · Member since 2016 · 149 posts · 55 votes
    6y

    I keep my cash in a divide paying whole life policy.



    https://infinitebanking.org/about/

Join the conversationCreate a free account to reply, vote on answers and follow this thread.