Where to park $300k for a year or so

[jeevsie 3733]

A full page and not a single "humblebrag" or Surly 1%?

What has this place come to?

[bernorange 8359]

11 minutes ago, Onboard 2.0 said:

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 it was purchased several years ago by my father I believe  I have no idea at all what to do with that. The old dollar coins are gorgeous to look at.

Trade them for Ameros.

[Onboard 2.0 9083]

13 minutes ago, bernorange said:

Trade them for Ameros.

WTF is an Amero ?

[bernorange 8359]

It's the American version of the Globero.  'merica!

[Cheeseweasel 26438]

1 hour ago, jeevsie said:

A full page and not a single "humblebrag" or Surly 1%?

What has this place come to?

300k does not make you Surly 1%

 

(FYI, that's how you humblebrag)

[Guest]

[Guest]

Point-seven-out, mofo.   I did laugh.

Edited February 1, 2021 by slorch

[Onboard 2.0 9083]

1 hour ago, bernorange said:

It's the American version of the Globero.  'merica!

Which begs the question.........what's a globero ?  Sounds a lot like a bolero...

[Ignatius 4017]

I was in a similar situation 3 years ago; are you planning on sinking the full 300K into the new home? Honestly with interest rates being what they are I would put as little down as possible and max out your mortgage. If you go that route then you have a lot more options; you basically need your ‘at work’ money to outpace 2.5-3.0% over the life of the mortgage...

[Onboard 2.0 9083]

7 minutes ago, Ignatius said:

I was in a similar situation 3 years ago; are you planning on sinking the full 300K into the new home? Honestly with interest rates being what they are I would put as little down as possible and max out your mortgage. If you go that route then you have a lot more options; you basically need your ‘at work’ money to outpace 2.5-3.0% over the life of the mortgage...

Yeah I totally get that, and if I was 30 that would be a no brainer. I don't want debt though.

If we opted for a mortgage it would be something token, and the funds we saved would go to a vehicle that could make some money maybe.  I really like the idea of closing in on 60, and having no mortgage unless we opt for a vacation house somewhere.

[Guest Lobo]

Do what I advised my client to do...if you need $10mm...raise $175mm instead.  Spend the $10mm on the declared line items and keep the rest.  

Because the people that consider themselves to be "educated, street-smart Texans who love the outdoors, common sense, and pragmatism" are fucking stupid.  

[GRHorn 105]

2 hours ago, Onboard 2.0 said:

Work with a contractor who swears by Bitcoin, and if he's telling the truth has made a lot of money on those. He bought fairly early on though.

Bitcoin prices go in 4 year cycles. 2021 set to be huge year. Last mania was 2017. 

[Sbbruin 21828]

Soybeans and cocoa futures.

[bernorange 8359]

2 hours ago, Onboard 2.0 said:

Which begs the question.........what's a globero ? 

Look at you posing existential questions and shit.

Spoiler

https://www.thebalance.com/the-amero-conspiracy-1345011

I'm joking around.  

 

[Continental Op 3934]

4 hours ago, jeevsie said:

A full page and not a single "humblebrag" or Surly 1%?

What has this place come to?

When the $300k number came up most of Surly was confused as to why Onboard just sold his guesthouse but not the main residence.

[RDCanecutter 26377]

7 hours ago, Onboard 2.0 said:

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.

What letters do you see, underneath the eagle's tail, on the silver dollars? It's one of those order-of-magnitude type things.

[GRHorn 105]

What about Dogecoin. This video is very, um, convincing.  

 

[swraith 345]

10 hours ago, EuroHorn said:

If you need it in a year then the safest would be to get the highest yielding CD. I think they are yielding about .7%.  It’s not much but there aren’t a whole lot of options right now without taking on more risk. 
 

https://www.bankrate.com/banking/cds/cd-rates/

This.  It sucks...but today's reality is forcing savers to accept almost no short term return unless they are willing to accept substantial levels of risk.

[Guest Lobo]

7 hours ago, GRHorn said:

What about Dogecoin. This video is very, um, convincing.  

 

Although she hams it up for effect, she knows she's sexy.  And she knows that trying to downplay sexy while still wearing that sexy outfit...she's being even sexier.  And she knows that we know the sexy, unsexy is even more extra-sexy.  That's what makes her super sexy.  It's the perfect metaphor for cryptocurrency if you think about it.  

Also, I would like a better view of her buttocks and will use the OP's $300k to pay for an hour with said buttocks and a bucket of lanolin hand creme.  

[Nice Guy Eddie 13507]

19 hours ago, TKthunder2 said:

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.

don't you get fewer tickets after 25K?  Instead of 1 ticket per 25, I thought it was 1 ticket for every 150. That would seem to drastically the return for any funds over 25K.  factor of 6?

[TKthunder2 4985]

14 hours ago, Nice Guy Eddie said:

don't you get fewer tickets after 25K?  Instead of 1 ticket per 25, I thought it was 1 ticket for every 150. That would seem to drastically the return for any funds over 25K.  factor of 6?

No wonder my APR went to shit.  I thought it was because my bonus tickets ran out.  Well thanks for the heads up.

[B00M 6413]

You've got enough for the lower cost admiral shares:

https://investor.vanguard.com/mutual-funds/profile/overview/vwsux

Bonus, the ticker is sorta funny

[Nice Guy Eddie 13507]

1 hour ago, TKthunder2 said:

No wonder my APR went to shit.  I thought it was because my bonus tickets ran out.  Well thanks for the heads up.

 I had no idea they did as well until I was reading their faq.  I wonder if a second account can be opened to bypass this rule.

[Superhero 8827]

On 2/1/2021 at 8:55 AM, 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.

Lumber prices shot up 56% this past year due to Canada mills initially shutting down due to COVID, and homebuilders stepping up fill demand. I'm in the construction industry, and while office buildings are taking an absolute beating, there is a lot of movement in the residential market.

If you want to gamble a bit, put some money into home builders.

 

My money is parked in a Goldman Sachs Marcus CD. The interest rate was 1.75% when I bought it last year. It's dropped to a pathetic 0.55% now.

[Anastasis 23455]

6 hours ago, Superhero said:

If you want to gamble a bit, put some money into home builders.

 

Some suggestions?

[Onboard 2.0 9083]

7 hours ago, Superhero said:

This.

Lumber prices shot up 56% this past year due to Canada mills initially shutting down due to COVID, and homebuilders stepping up fill demand. I'm in the construction industry, and while office buildings are taking an absolute beating, there is a lot of movement in the residential market.

If you want to gamble a bit, put some money into home builders.

 

My money is parked in a Goldman Sachs Marcus CD. The interest rate was 1.75% when I bought it last year. It's dropped to a pathetic 0.55% now.

Yep, and as long as the supply lags it's gonna be expensive. Covid has driven material costs up artificially, let's hope that trend subsides as herd immunity, and or vaccines tip the balance back to normal.   Once mills and factories can begin opening back up supply, and availability should rebound, and hopefully drive prices back down to a normal range.

Covid was like 10 class 5 hurricanes hitting the Pacific, gulf, and Atlantic seaboard simultaneously.  

I'm getting ready to do a cosmetic upgrade, and flip on my dads house.  Creating a budget for what we need to do is gonna hurt. At least my brother, and I can handle most of the labor. 

[Superhero 8827]

19 hours ago, Anastasis said:

Some suggestions?

LEN

[Assman 1830]

We're in the same boat (about to build a house, not sitting on $300K).  We were about to start our build early last year but stopped before breaking ground when COVID hit.  Well, the price of our house has now increased $150K in that time.  Hindsight 20/20 and all that shit.  We still haven't pulled the trigger due to uncertainty in the airline industry and sky high construction costs.  Even though construction costs are insane, I'm afraid even if they do go down a bit, the interest rates will increase making it all a wash.  A part of me just wants to say fuck it and pull the trigger and hope for the best. 

To answer the OP's question, shop credit union checking and savings account promotions.  Our SWA credit union offers 3% (it was 4% before COVID) on checking account balances up to $25,000 if you make 1 deposit and 15 transactions ($5 min) per month.  The only ass pain is having to make 15 $5 Amazon gift card purchases per account, per month. 

[B00M 6413]

I think interest rates are in the shitter forever

[bluto 4912]

We're in the same boat (about to build a house, not sitting on $300K).  We were about to start our build early last year but stopped before breaking ground when COVID hit.  Well, the price of our house has now increased $150K in that time.  Hindsight 20/20 and all that shit.  We still haven't pulled the trigger due to uncertainty in the airline industry and sky high construction costs.  Even though construction costs are insane, I'm afraid even if they do go down a bit, the interest rates will increase making it all a wash.  A part of me just wants to say fuck it and pull the trigger and hope for the best. 
To answer the OP's question, shop credit union checking and savings account promotions.  Our SWA credit union offers 3% (it was 4% before COVID) on checking account balances up to $25,000 if you make 1 deposit and 15 transactions ($5 min) per month.  The only ass pain is having to make 15 $5 Amazon gift card purchases per account, per month. 

What I would do to get around that is finding a quick functioning gas pump, a few cents per transaction in the course of filling up plus a water inside and it gets knocked out with 10 min of extra ‘work’. I think I like the Amazon thing more though, sitting on my ass and all.

[Scooter Monzingo 820]

On 2/1/2021 at 3:35 PM, Onboard 2.0 said:

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.

Don’t do shit until you have the coins appraised. Morgan’s were minted in the 1880/90’s period. There are a half dozen or so that are easily worth over $100,000 each if the correct mint Mark and date, say 1889 O (New Orleans mint) are in your lot. 
It is what made the California hoard so fucking valuable. Coins themselves were around a few thousand dollars, but to the numismatic community, once graded were worth millions.

[Onboard 2.0 9083]

2 hours ago, Scooter Monzingo said:

Don’t do shit until you have the coins appraised. Morgan’s were minted in the 1880/90’s period. There are a half dozen or so that are easily worth over $100,000 each if the correct mint Mark and date, say 1889 O (New Orleans mint) are in your lot. 
It is what made the California hoard so fucking valuable. Coins themselves were around a few thousand dollars, but to the numismatic community, once graded were worth millions.

They were my dads. He was a pretty serious civil war collector. I doubt there's anything, but yeah I am planning on going thru them just to be sure. They are dated from the 1880's on.

[Cajun 11705]

[Onboard 2.0 9083]

4 hours ago, Cajun said:

and we have a winner......

[Anastasis 23455]

On 2/1/2021 at 7:53 AM, Johnny Chimpo said:

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. 
 

 

On 2/1/2021 at 9:08 AM, Incredulity said:

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.

Can the board recommend some bond ETFs?  I haven't fucked with any of this bond shit before, but I am sick of my money market account paying 0.06 @ frost.  This is not play money, so looking for lowish risk stuff. Would be happy with 2-3% in something relatively safe, maybe more in something with a bit more risk but still relatively safe.  Would like to use ETFs to keep it essentially liquid.

I bought a chunk of LQD @ 2.66 yield. Anything else I should look at?  Tax free shit sounds nice, will look into municipal bonds.   

[Johnny Chimpo 478]

13 hours ago, Anastasis said:

 

Can the board recommend some bond ETFs?  I haven't fucked with any of this bond shit before, but I am sick of my money market account paying 0.06 @ frost.  This is not play money, so looking for lowish risk stuff. Would be happy with 2-3% in something relatively safe, maybe more in something with a bit more risk but still relatively safe.  Would like to use ETFs to keep it essentially liquid.

I bought a chunk of LQD @ 2.66 yield. Anything else I should look at?  Tax free shit sounds nice, will look into municipal bonds.   

I really don’t know where to begin. I have VTEB in my wealthfront account and it seems to be fine. I haven’t done a great deal of detailed research though. One thing I would advise if you get into muni funds is to check the state allocation. Try to stay away from high % allocations to broke states like Illinois, New Jersey, Connecticut. That’s one thing I’ve read to look out for. 
 

PIMCO has some solid returns from muni CEFs that use leverage to juice the yields... again that’s a bit higher level of risk than a normal bond fund but there’s a lot of arguments out there that a Biden administration would be quicker to bail out municipalities than the previous one /no CR.