Where's Your Money?

Question

I'm curious to hear where people have their money these days. You just made a killing off a flip, sold your personal home in this crazy market, inherited a chunk of cash from family, etc. You hear a lot about the great deals people make and how they plan to scale or buy a bigger investment, but what's your strategy for that in between time where you're holding a big sum of cash until the next deal or when you decide to cash out all together? Do you just stick it in the bank? Throw a bit into other investments? No right or wrong answer of course I'd just like to hear other perspectives.

Chris Battaglia · Answer

Hey Luke, I agree with you completley. I'm in a spot where I'm looking to add more real estate to my portfolio and having cash readily available gives me peace of mind. Having money tied up or subject to penalty/restrictions if moved around is not worth any minimal gain it might see in the short term (for my purposes). Market volatility as you mentioned poses another risk that I'm not interested in as these funds are for real estate.

Luke Trovinger · Answer

Hey @Chris Battaglia! I'm a fan and personally keep my liquid funds in a high yield savings account. Rates used to be a lot better, but at least you're earning something and have immediate access. I use Ally and their rate is 0.5% right now, there may be slightly higher options out there. I think it also boils down to personal risk tolerance, I personally want to be able to access those funds ASAP when opportunities arise and know that it's going to be ~the same dollar amount. Although I know from hindsight keeping those funds in a brokerage account would've had a better yield, it wasn't worth the potential risk of the current market conditions. What are your thoughts on keeping liquid funds?