Where to put profits from my home sale?
We will have a few hundred thousand dollars to invest after our home sale. Not only do I want to avoid paying taxes on that money, but we want to invest it as well. Initially, we would need access to approximately $50K within 18 months of investing. The remaining balance is more long-term.
Any suggestions or advice would be appreciated.
Thank you.
Most Popular Reply
If you are looking for more safety and preservation of principal, we recommend a cash platform called Flourish (owned by Mass Mutual) to our clients. The current yield is 5% which is variable. It’s been 5% for the better part of the last year. It’s flexible with no restrictions to move money between your other bank and investment accounts.
As far as other options that might have higher yield and returns, structured notes and trust deed notes might be worth a look. I have not quantified your risk tolerance, but from what you stated it looks like you are not particularly aggressive and might be moderate or slightly below. Notes cover the entire risk spectrum and can be appropriate depending on the amount allocated and terms. There are greater risks relative to an option like Flourish which is strictly capital preservation, and temporary illiquidity is one of the drawbacks, but if you are selective and do your due diligence I think you can achieve the desired result.