Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
What to do with Capital Gain
Old 08-10-2009, 08:21 AM   #1
Dryer sheet wannabe
 
Join Date: May 2008
Location: Charlottesville
Posts: 14
What to do with Capital Gain

I will be retiring from the Federal government on January 1, 2010. Wooo Whoooo!

The plan is to sell our house inside the Beltway. We expect to net over $300,000, after we pay off what's left of our mortgage and a line of credit. After we sell the house we plan to move to Charlottesville, VA. We plan to rent to make sure this is where we want to settle for the rest of our lives, and to find the exactly the best part of town to buy.

My question is, "What should we do with the $300,000 until we find our dream house?" We want to be able to access it, as soon as we find the right house, we can't afford to lose too much of this, if the market takes another nosedive, and we would like to get the maximum positive return while we are looking. I know this means I want everything, but why not, I'll be retired?

If this topic has been discussed before, I apologize for the repetition and would appreciate a link to the previous postings.
__________________

__________________
jaybones is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-10-2009, 08:37 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,030
When we moved from New Jersey to Florida we put the money in CD's while we rented . Of course Cd's were paying a little better at the time .
__________________

__________________
Moemg is offline   Reply With Quote
Old 08-10-2009, 08:37 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Feb 2006
Posts: 1,183
Yahoo has an article today on intrest bearing checking accounts paying around 4%. I would look at 3 or 4 of those were it me. Keep it under 100K for FDIC Insurance purposes.
__________________
crazy connie is offline   Reply With Quote
Old 08-10-2009, 04:57 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
If you are under CSRS and still working you can make a contribution to the OPM Voluntary Contribution program. I never had much in it but it provides 10% safe bond rates of return.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Old 08-11-2009, 07:28 AM   #5
Dryer sheet wannabe
 
Join Date: May 2008
Location: Charlottesville
Posts: 14
Yakers,
I am CSRS, but there are a couple problems with your idea. 1) When I quit the Feds to go back to grad school, I withdrew my CSRS contributions, and I have non-CSRS covered Federal time, so I'd have to repay that first, to the tune of $4,000. 2) I won't have the money until I sell the house and I plan on doing some work on the house after I retire and before I put the house on the market. 3) The Voluntary Contributions program does not pay anywhere near what it used to. But thanks for the idea. It wasn't something I had thought of and I did check it out yesterday after reading your post.
__________________
jaybones is offline   Reply With Quote
Old 08-11-2009, 03:31 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
Darn, didn't catch it fast enough, it was 100% safe not a 10% return. Anyway hope you find a good place for your money. If I sold my house and had to park money somewhere I would probably look at VG money market funds and maybe Penfed CDs, some are short term and longer ones with a reasonable fee for early redemption.
__________________

__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Help with 0% capital gain tax for 2008... FIREd FIRE and Money 9 10-07-2008 06:27 PM
Capital gain from sale of rental property Purron FIRE and Money 4 03-27-2008 02:16 PM
Dividends and Capital gain Questions eudaimoniac FIRE and Money 5 01-27-2008 04:38 AM
Tax question regard 2008 capital gain rate teejayevans FIRE and Money 3 12-10-2007 10:01 PM
Capital gain tax questions farmerEd Other topics 38 10-31-2004 03:31 AM

 

 
All times are GMT -6. The time now is 11:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.