I started a cash out refi on my primary home 30 days ago and they are ready to close next week.
It's a 5 year ARM, resets every 5 years, 3% interest rate, about $800 in closing cost, monthly payment of $760 ($450 interest, $310 principal pay down to start).
I was going to use the $$ to purchase another short sale investment rental property in cash but the deal fell thru. I will look for another deal passively as I was informed that my job was eliminated 2 weeks ago. Severance will carry me to the end of Nov, then unemployment and emergency fund areready if I'm unable to secure new employment.
Question - Looking for suggestions on, what should I do with the cash for now, i.e. holding period of 3 , 6, 9 months?
A. Online savings account, rate at 1.01%
B. Short-Term Investment- Grade (VFSTX), SEC yield @ 1.55%
C. Total Bond Market Index (VBMFX), SEC yield @ 2.35%
D. Wellesley Income (VWINX), SEC yield @ 3.26%
E. Cookie jar as the sky is falling!!!
Thank for your feedback.
Moderator edit: this thread was relocated to "FIRE and money because it is a request for investing advice