We are going to sell our home and make somewhere between $300,000 and $350,000. We are not ready to buy because their aren’t many options and we are concerned about buying when the market is high. Also we aren’t sure if we want to purchase a house with cash, buy land and build, or have a small mortgage payment. So where would you put that much money for a year - maybe more, maybe less.
FYI - The house is our only debt and we have a healthy EF and invest in our 401K, IRAs, HSA, and other monies.
Congrats Devon & Neal! You are well ahead of the game.
In this situation most people recommend putting the money into an online high yield savings account. No it’s not sexy and may not return as much as the market, but this is money you want safe and liquid for short-term use and don’t want to risk investing it if the market happens to go down.
If you don’t need all of the money for your next home purchase, you could put what you plan to use in the HYSA and invest the rest
Hope this helps
Well said Tom. This post is worth checking out: