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House profit saving
Old 04-02-2006, 11:46 PM   #1
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House profit saving

I'm putting my home on the market in the next few weeks....
I stand to make about 125-140k on the property, and will just be putting the money away for the next year and a half or so. I'm in the military and will be deploying in a few months, and will be gone for a year, so there's no use to buy a place until I get back.
I'd appreciate your comments about what I should do with this money. The main thing is - I'm not willing to lose any principal on this money - I want to have the full amount to buy a place when I get back.
Is a CD as good as anything? I saw the Treasury Bills aren't really much higher than CD's. I don't really know where else to put it. I'm thinking there are other places that I can put it, since it's a larger amount of money.
Any ideas?
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Re: House profit saving
Old 04-03-2006, 01:50 AM   #2
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Re: House profit saving

Yes, an 18-month CD would do the trick. Your only concern might be that the FDIC will only insure $100K per account. You can always put in multiple banks to get the full amount insured. Check bankrate.com for rates -- you should be able to get around 5%.
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Re: House profit saving
Old 04-03-2006, 07:55 AM   #3
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Re: House profit saving

Allternatively, you could just plunk the oney in the Vanguard money market fund. Yields over 4% and rising, virtually no risk, and instant liquidity should you need it.
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Re: House profit saving
Old 04-03-2006, 09:49 AM   #4
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Re: House profit saving

Quote:
Originally Posted by brewer12345
Allternatively, you could just plunk the oney in the Vanguard money market fund. Yields over 4% and rising, virtually no risk, and instant liquidity should you need it.
+1

Vanguard Prime MM is yielding 4.47% today with daily liquidity. Hard to beat that

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Re: House profit saving
Old 04-03-2006, 05:37 PM   #5
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Re: House profit saving

Emigrant Direct savings accounts are now paying 4.5%.
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Re: House profit saving
Old 04-03-2006, 08:23 PM   #6
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Re: House profit saving

Thanks guys - I may actually go with one of the emigrant direct savings accounts.
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Re: House profit saving
Old 04-03-2006, 09:52 PM   #7
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Re: House profit saving

If you go with Emigrant, you might also want to look at their credit card. If you have > $10K in their savings account, the card pays 1.4% cash back on all purchases with no upper limit.

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Re: House profit saving
Old 04-07-2006, 08:07 PM   #8
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Re: House profit saving

don't forget your military tax breaks

"Taxpayers may exclude gain on a home sale, provided they have owned and used the home as a principal residence for two of the five years before the sale." you should be able to hold onto these gains without paying taxes until you return from overseas if I read everything correctly.
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Re: House profit saving
Old 04-08-2006, 11:34 PM   #9
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Re: House profit saving

Yes I found out about the tax break - but it gets better - I was told by the tax pros on post that if you're military, it's the past 2 out of 15! Mine's been the past 2 out of 5, so no big deal, but I'm very happy to know that I won't have to pay that capital gains tax. that's a bundle of saving right there.
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