Where to put $800k
- Thread starter Yipper
- Start date
Montecfo
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Treasury securities. Safe and about the highest ST rates available now.
I only owned this property for about 3 years (inheritance) so depreciation recapture is relatively small and don't expect to reinvest it as a rental - looking at combining with current primary home property and purchasing future home to live in.
I was thinking the same about treasuries.
copyright1997reloaded
Thinks s/he gets paid by the post
ST Treasuries, matching maturity a bit shorter to when you expect to buy. Maybe even 3 months and roll them as they mature...assuming you can figure out the purchase to a quarter.
Sorry for what's maybe a dumb question... what's "ST" Treasuries?
Dash man
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
ah... coffee hasn't kicked in... lol
copyright1997reloaded
Thinks s/he gets paid by the post
A long long time ago as a pup I worked in mega-corp in a smallish company town. As us young pups started to accumulate savings, some naturally started looking for houses to buy. I can remember vividly someone who was going to close on a house in a month asking me if they should sell their company stock now (which they needed to do for the down payment and to close) or wait until the week of the closing.
To me it was incredible, that they would risk being able to close on the property by gambling (hoping) that the company stock would go up in that few weeks.
I'm sure others out there have seen similar kinds of situations, e.g. a college fund severely impacted a year or two before being needed for college.
I have always thought (and expressed) that if you have a known upcoming, relatively short time in the future, expense, you need to have guaranteed good funds to map to that expense. That is, don't gamble.
I know the OP's situation is different, i.e. that they don't HAVE to do that next real estate purchase. So I am just expressing a general thought in terms of planning, not specific to the OP.
To me it was incredible, that they would risk being able to close on the property by gambling (hoping) that the company stock would go up in that few weeks.
I'm sure others out there have seen similar kinds of situations, e.g. a college fund severely impacted a year or two before being needed for college.
I have always thought (and expressed) that if you have a known upcoming, relatively short time in the future, expense, you need to have guaranteed good funds to map to that expense. That is, don't gamble.
I know the OP's situation is different, i.e. that they don't HAVE to do that next real estate purchase. So I am just expressing a general thought in terms of planning, not specific to the OP.
I have seen this as well - mind boggling. That's why the #1 question is "when do you need the money?". For the proceeds from this sale my time horizon is anywhere between 6 months to 3 years I'm thinking. If I didn't need this money for a decade it would go right into stocks. Even if there's a recession and additional market drop history tells me that a decade is usually enough time to recover. In reality, even if I didn't expect to use it for a decade I would still do something a bit more diversified than just VTI and probably "dollar cost" it into my longer term portfolio just in case things keep dropping for a while.
In my case and timeframe - i like the short term treasuries and we'll monitor things along the way.
Bryan Barnfellow
Thinks s/he gets paid by the post
It's also the country code for Sao Tome and Principe, an island nation off the coast of Gabon in central Africa. Not sure what their treasuries are going for these days, however.
-BB
Edit: fixed my geography.
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