Jump to content

Where to park $300k for a year or so

Onboard 2.0

By Onboard 2.0
in Business and Markets

 Share

Recommended Posts

Onboard 2.0

Onboard 2.0 9083

Posted
Posted

The recent sale of our house is gonna net us a little more than $350k. After paying some debts we'll have about $300k to park while I design a new home, and wait for the worst of the covid construction cost spike to subside in the next year or so. There'll probably be some other contributions ($10-$25k) from my father estates to park as well as the funds are released.  Can't be something that locks the funds in with withdrawal penalties as we'll need them once we begin construction.

Where could one put those kinds of funds that would be relatively safe, and accessible without penalties in a year that could see some potential return on the investment.  No penny stocks of course...

Link to comment
Share on other sites
Johnny Chimpo

Johnny Chimpo 478

Posted
Posted

Most safe - Yotta savings account. I’m storing my cash here now after trying it out. It’s getting better yield than a high yield online savings account. 
 

less safe - bond funds. There’s A whole world of them out there. 
 

VTEB doesn’t seem like a terrible choice especially given its tax exempt.

you can pretty go all the way out the yield ladder to HYG or JNK if you like. If you wanted to get fancy and get a little more juice  you could park a little in each tranche of risk. There’s some PIMCO CEFs Ive been eyeing for a while too but I never pulled the trigger on em yet. 
 

I’m in the process of selling a house too and about to have the same issue here in a month or so. 
 

Link to comment
Share on other sites
Nice Guy Eddie

Nice Guy Eddie 13517

Posted
Posted
13 minutes ago, DonkeyCigars said:

https://www.surlyhorns.com/board/index.php?/topic/16748-savings-account-lottery/page/3/&tab=comments#comment-2991939

If you’re looking for zero risk, we’re seeing about 1.4% annually with this savings account. I wouldn’t put more than 250k in a single account given fdic limits.  Anyway you won’t get wealthy with 1.4% but you can’t beat the return with zero time commitment.

  • Hook 'Em 1
Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted
11 minutes ago, Johnny Chimpo said:

Most safe - Yotta savings account. I’m storing my cash here now after trying it out. It’s getting better yield than a high yield online savings account. 
 

less safe - bond funds. There’s A whole world of them out there. 
 

VTEB doesn’t seem like a terrible choice especially given its tax exempt.

you can pretty go all the way out the yield ladder to HYG or JNK if you like. If you wanted to get fancy and get a little more juice  you could park a little in each tranche of risk. There’s some PIMCO CEFs Ive been eyeing for a while too but I never pulled the trigger on em yet. 
 

I’m in the process of selling a house too and about to have the same issue here in a month or so. 
 

Much o-bliged. Yeah, can't risk losing the nut we've been growing for years now, so playing it safe with most of it is the game plan.  $250K in a safe vehicle, and maybe put the remaining $50K in a couple other slightly higher risk places.

  • Hook 'Em 1
Link to comment
Share on other sites
Incredulity

Incredulity 11681

Posted
Posted

IMPO some combination of:

 

1.) Ally(or other FDIC insured high yield savings):  No loss of capital.  0.5% interest.

2.) S&P 500 ETF.  Vanguard(or total market)  Market risk, low fees, +/- 2% dividends at gap gains rates

3.) ishares MUB.  Tax free municipal bonds ETF.  Trades in a fairly tight range.  2% dividends tax free.

 

 

  • Like 1
Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted (edited)
51 minutes ago, dingleberryswitzer said:

I wouldn't hold your breath on that one.  

Yeah it's gotta come back some. 2% interest rates are fueling the construction industry right now so that offsets some of the stupid triple price inflation.  At some point those high costs will cause problems (pin meet balloon).

Edited by Onboard 2.0
Link to comment
Share on other sites
52-80

52-80 19222

Posted
Posted (edited)

Use it as collateral to sell weekly 2-Sigma SPY puts.  easy.

 

 

 

just to expand:  Against a collateral of $50,000, sell 10 contracts of Friday expiry SPY 347 puts.  You net $420 .  If SPY closes above 347, all that money is yours.  Do this 52 weeks = 7.5% annualized return. 

If SPY closes below 347, congrats, you just owned the US stock market at a discount.

If SPY closes at 1$, you will have lost the entire 300k ... except we're in a nuclear apocalypse and money is meaningless.

Edited by 52-80
  • Like 1
Link to comment
Share on other sites
Celery Man

Celery Man 20989

Posted
Posted

On the one hand, I have most of my net worth in the markets and I am going to ride that rollercoaster.

If I liquidated my house with the intent to build a new one in the next 3 years, I would park it in a money market and lose the potential for growth. I'm not a financial wizard but I wouldn't bet my house that we're not sitting on a bubble. And if I stuck it in the most boring of index funds and lost $100k hoping to earn 50 I would never stop punching myself in the dick.

  • Hook 'Em 1
  • Like 2
Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted
10 minutes ago, Celery Man said:

On the one hand, I have most of my net worth in the markets and I am going to ride that rollercoaster.

If I liquidated my house with the intent to build a new one in the next 3 years, I would park it in a money market and lose the potential for growth. I'm not a financial wizard but I wouldn't bet my house that we're not sitting on a bubble. And if I stuck it in the most boring of index funds and lost $100k hoping to earn 50 I would never stop punching myself in the dick.

Yeah, We're not gonna roll those dice.  It would be a colossal fuck up if we lost that money.  I am willing to risk some in something with a fairly safe if a bit extended risk factor, but not much.

I'm not going into the last chapters of my life in debt.  We want to be able to travel, have fun, spend discretionary money without worrying about covering a mortgage payment.

Link to comment
Share on other sites
ztejas

ztejas 43526

Posted
Posted
16 minutes ago, Onboard 2.0 said:

Yeah, We're not gonna roll those dice.  It would be a colossal fuck up if we lost that money.  I am willing to risk some in something with a fairly safe if a bit extended risk factor, but not much.

I'm not going into the last chapters of my life in debt.  We want to be able to travel, have fun, spend discretionary money without worrying about covering a mortgage payment.

Yeah I wouldn't put it in any ETF since there's no guarantee you'd be up YTD. 

Like others have said, I'd just shop savings accounts. 

Link to comment
Share on other sites
ztejas

ztejas 43526

Posted
Posted
1 minute ago, Brisketexan said:

From what I hear, I wouldn't count on construction costs going down in a year.  Lumber is at record prices, and projections show that there's no reason to expect them to come down meaningfully anytime soon.

Maybe he should just buy $300k worth of lumber.

  • Hook 'Em 3
  • Haha 3
Link to comment
Share on other sites
Aqua Buddha

Aqua Buddha 14600

Posted
Posted
5 minutes ago, Brisketexan said:

From what I hear, I wouldn't count on construction costs going down in a year.  Lumber is at record prices, and projections show that there's no reason to expect them to come down meaningfully anytime soon.

This is correct.  Construction costs will be higher next year if anything.

Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted
6 minutes ago, Brisketexan said:

From what I hear, I wouldn't count on construction costs going down in a year.  Lumber is at record prices, and projections show that there's no reason to expect them to come down meaningfully anytime soon.

With the upward pressure on construction, coupled with historic low rates probably not.  If Covid issues are mitigated with a vaccine, then they should ease some as closed factories, mills, etc. are able to open back up.

Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted
5 minutes ago, ztejas said:

Username fits, too. On board(s?).

Me and a couple buds talked a about that concept a few years back.  We were toying with a design build co. and having a warehouse with price stable lumber could have been a nice pump primer.  Sitting around a campfire sipping bourbon for hours on end does that kind of shit to you.

Link to comment
Share on other sites
ztejas

ztejas 43526

Posted
Posted
1 minute ago, Onboard 2.0 said:

Me and a couple buds talked a about that concept a few years back.  We were toying with a design build co. and having a warehouse with price stable lumber could have been a nice pump primer.  Sitting around a campfire sipping bourbon for hours on end does that kind of shit to you.

Yeah I think warehousing costs for the scale you'd operate at would fuck any profits you might see in the ass. 

Which is why I was 100% kidding.

Link to comment
Share on other sites
ztejas

ztejas 43526

Posted
Posted
43 minutes ago, Onboard 2.0 said:

Bud had a pretty large tractor shed (5K sq. ft.) on his property.

Could you fit $300k worth in a space like that?

Would it need to be climate controlled?

How are you transporting it?

Where are you buying from and who are you selling to?

Most importantly: what would your wife think about this?

Link to comment
Share on other sites
TKthunder2

TKthunder2 4997

Posted
Posted

Seriously, I’m in the same boat.  Sold house and about to remodel my new one.  Dumped 200k into Yotta accounts (one for me, one for the wife).  You can only deposit $10k/day, $40k/month so it took just over 2 months to get it in there and will take about that long to get it out.  I invested some in my brokerage but my Yotta has been giving me about 1% returns (though Jan, my worst month so far, was just .6%) so that good enough for money I literally can’t lose.

  • Hook 'Em 1
Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted
46 minutes ago, ztejas said:

Could you fit $300k worth in a space like that?

Would it need to be climate controlled?

How are you transporting it?

Where are you buying from and who are you selling to?

Most importantly: what would your wife think about this?

In my defense we did drink uh-lot of bourbon.

  • Haha 1
Link to comment
Share on other sites
CBT

CBT 1282

Posted
Posted
5 hours ago, DonkeyCigars said:

https://www.surlyhorns.com/board/index.php?/topic/16748-savings-account-lottery/page/3/&tab=comments#comment-2991939

5 hours ago, Nice Guy Eddie said:

If you’re looking for zero risk, we’re seeing about 1.4% annually with this savings account. I wouldn’t put more than 250k in a single account given fdic limits.  Anyway you won’t get wealthy with 1.4% but you can’t beat the return with zero time commitment.

 

Come join the fun. $40k is the current limit however. 

Link to comment
Share on other sites
GRHorn

GRHorn 105

Posted
Posted
5 hours ago, Onboard 2.0 said:

Much o-bliged. Yeah, can't risk losing the nut we've been growing for years now, so playing it safe with most of it is the game plan.  $250K in a safe vehicle, and maybe put the remaining $50K in a couple other slightly higher risk places.

Put the 50K and buy 1.5 Bitcoin. Sell later this year. Thank me then. 

Link to comment
Share on other sites
Onboard 2.0

Onboard 2.0 9083

Posted
  • Author
Posted (edited)
1 hour ago, CHIEF said:

Might want to look into the silver market:

https://capital.com/will-silver-prices-go-up-in-2021

CHIEF

I'm sitting on bags of sliver dollars from the late 1880's on, and lots of silver quarters, somewhere around $2k original purchase price back when my dad bought I believe  I have no idea at all what to do with that. The old dollar coins are gorgeous to look at though.

Edited by Onboard 2.0
  • Hook 'Em 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
 Share
Go to topic listing


Football ... Basketball ... Baseball ... Other Sports ... Futbol ... 🤫995🤫 ... Gambling ... Movies & TV ... Music ... Hobbies ... Lulz ... Food & Travel ... Daily Texan ... Business and Markets ... Cloak Room ... Help ... For Sale ... Board Discussion ... Subscribe!... Donate!... Advertise... COOKIE MONSTER!

×
×
  • Create New...