What to do with liquid cash?

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Aaron K. · Answer

an online bank will make sure the entire 60k is there when you need it and should give you 1.8% I believe Ally bank also has a no penalty 11 month CD which pays a bit more, the money just has to stay in there for a week for you to be able to close the entire account whenever you want.  Other investments will either be not liquid or run the risk of losing the principle in the short term.

Matt Ward · Answer

@Michael O. My thought process would be "why do I need this to be liquid?" and if there isn't a good answer to that, you can find good high-liquidity returns in REI like 6-12 month note investing.  For example, find a secured loan @ 12% for 12 months or less.  Good luck!

Dan Cournoyer · Answer

I agree with @Aaron Klatt, using an online bank like Ally or SmartyPig (SallieMae) is probably your best bet.  You can get CD rates at local banks or credit unions at around the same rate too.  CDs are great because you can get high interest rates and the only penalties should be losing the interest.  Throw it in a one year and if you keep it in the CD the entire year you'll make roughly 1k in interest.  If you need it before the maturity of the CD then you can pull it out immediately and you'll just lose the interest you've accrued (or a portion of it).

A more risky approach would be investing a portion (maybe 10k) into a stock fund like SPY.  You can use Robinhood for free trading.  If you don't need this money I'd argue that you should buy some stocks and if they grow then you can use the full amount for real estate in the future.  If the stocks drop just keep it long term and it should eventually recover (it always does) and you still have the other 50k sitting in CDs for your real estate when you want it.  Even if the market goes down 10% which would be a lot, you still have 59k overall.

Hope that helps. Good luck!

What to do with liquid cash?

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