Go Back  DVD Talk Forum > General Discussions > Other Talk
Reload this Page >

Short term investment advice post-real estate sale

Other Talk "Otterville"

Short term investment advice post-real estate sale

Old 10-12-15, 04:28 PM
  #1  
DVD Talk Ultimate Edition
Thread Starter
 
Join Date: Jan 2002
Location: Connecticut
Posts: 4,472
Likes: 0
Received 0 Likes on 0 Posts
Short term investment advice post-real estate sale

Hi guys,

I recently sold my condo in Brooklyn to move to CT for a new job, and I made a fairly good amount on the sale. I'm thinking of buying a townhouse here in March or so, so I'm trying to figure out what to do with the money in the meantime since it's just sitting in my checking account which I know is the worst place for it. I'll probably still have some money left over that I can keep in whatever fund I invest in.

My bank is TD so they recommended TD Ameritrade, and TDA is recommending something called an Amerivest Managed Risk Portfolio which they say is good for me since it's conservative and I can pull money out when I'm ready to buy property. This is the website for it.

Anyone have any thoughts on this? I know absolutely nothing about investing. I heard Vanguard is good too but maybe not for this situation? I really have no idea, any help is super appreciated.

Thanks!
Old 10-12-15, 04:33 PM
  #2  
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Re: Short term investment advice post-real estate sale

The real estate bubble is pretty much here again, but few people realize it. However, the eventual hyper-inflation that has to come before long could very easily make a purchase in a bubble the smartest thing we could do with out money. How fucking bizarre. Personally, I would just go with a CD, but I'd consider purchasing the place sooner rather than later (your own little market situation may change that) simply because most areas are beginning to get hot. So get in now to save yourself, assuming you are planning to stay for 5 years minimum, or wait until March while in a CD.
Old 10-12-15, 04:44 PM
  #3  
Senior Member
 
Join Date: Mar 2000
Location: Somewhere over there
Posts: 620
Likes: 0
Received 0 Likes on 0 Posts
Re: Short term investment advice post-real estate sale

just park it in a savings account. Your time horizon is so short, not worth investing in the markets.
Old 10-12-15, 04:49 PM
  #4  
DVD Talk Hero
 
Why So Blu?'s Avatar
 
Join Date: Feb 2012
Location: Los Angeles
Posts: 33,508
Received 314 Likes on 263 Posts
Re: Short term investment advice post-real estate sale

Originally Posted by tbone View Post
just park it in a savings account. Your time horizon is so short, not worth investing in the markets.
This.
Old 10-12-15, 04:55 PM
  #5  
Member
 
Join Date: Feb 2013
Location: Atlanta
Posts: 59
Likes: 0
Received 0 Likes on 0 Posts
Re: Short term investment advice post-real estate sale

Both Dave Ramsey and Clark Howard said there isn't much you can do. Yes, there is Vanguard; however, you are still looking at maybe 1% on your money. You can check out bankrate maybe 1.2 for a one year CD.

Keep it in your bank. Investments should be 5 years or longer.

Checkout Dave Ramsey he is the truth. Don't use debt. Pay for your next property in cash, if you can.

The 7 Baby Steps....
Old 10-12-15, 05:08 PM
  #6  
Moderator
 
Geofferson's Avatar
 
Join Date: Aug 2000
Location: The Village Green
Posts: 39,346
Likes: 0
Received 20 Likes on 18 Posts
Re: Short term investment advice post-real estate sale

Whatever amount you think you'll need for March, put it in an online savings account or 6-mo CD. Your goal with that is to make sure it's secure and liquid - not to invest it. Feel free to invest whatever difference you have - Vanguard is a good option. Fidelity is another. As mentioned above, investments is a long-term game.
Old 10-12-15, 07:10 PM
  #7  
DVD Talk Gold Edition
 
Join Date: Sep 2012
Posts: 2,646
Received 51 Likes on 44 Posts
Re: Short term investment advice post-real estate sale

Originally Posted by BJacks View Post
I know absolutely nothing about investing.
In my experience, do not waste your time on "investments" you do not understand at all. Regardless of what anybody else says.

If you do not understand what components contribute to the "rate of return" on a particular investment, then get highly educated on it. Otherwise, don't waste your time and money on it.

Imho if you want to invest a lot in the stock market, you better be willing to watch your stock positions constantly like a hawk. (ie. Having constant nightmares and a lot of anxiety). Otherwise, there's the option of index funds.

More generally, do not take anybody else's word when it comes to investments. One should also be skeptical of one's own knowledge. (ie. It's easy to fool yourself into believing your own BS and other personal "rationalizations").
Old 10-12-15, 08:21 PM
  #8  
DVD Talk Legend
 
Join Date: Apr 2002
Location: Formerly known as Groucho AND Bandoman/Death Moans, Iowa
Posts: 17,675
Received 142 Likes on 95 Posts
Re: Short term investment advice post-real estate sale



Always bet on black.
Old 10-12-15, 09:13 PM
  #9  
DVD Talk Legend
 
Shazam's Avatar
 
Join Date: Jul 1999
Location: Canuckistan
Posts: 10,027
Likes: 0
Received 0 Likes on 0 Posts
Re: Short term investment advice post-real estate sale

Pumpkin futures.
Old 10-12-15, 11:13 PM
  #10  
DVD Talk Hero
 
Join Date: Jan 2000
Location: Montreal, Canada
Posts: 32,068
Received 284 Likes on 200 Posts
Re: Short term investment advice post-real estate sale

A others have said, not worth investing for a few months. Try to find the bank with the best HISA (High Interest Savings Account). Don't know about the US, but here in Canada they often have promotions like "2X or 3X interest on new deposits for x number of months." And/or they will offer a sign-up bonus. For example, Tangerine (former ING Direct) had 3X interest (2.40%) for 6 months from May to December 2015.
Old 10-12-15, 11:16 PM
  #11  
DVD Talk Hero
 
Join Date: Jan 2000
Location: Montreal, Canada
Posts: 32,068
Received 284 Likes on 200 Posts
Re: Short term investment advice post-real estate sale

Here, for the US, you might want to read this:

http://www.thesimpledollar.com/best-savings-account/
Old 10-13-15, 09:29 AM
  #12  
DVD Talk Legend
 
Goat3001's Avatar
 
Join Date: Aug 2001
Location: NYC
Posts: 17,116
Received 22 Likes on 10 Posts
Re: Short term investment advice post-real estate sale

OP, I too believe you should park your money in a short term CD. With your time horizon being so short and you not wanting to risk any of your capital, this is the best solution.

Have you spoken to an accountant about taxes? There will be others here more well versed in this but I believe there is a way to avoid paying taxes on the proceeds of the sale of your condo if you roll the money into another investment right away. I could be completely off base here but I'm sure someone else here will know more about it.

Originally Posted by morriscroy View Post
Imho if you want to invest a lot in the stock market, you better be willing to watch your stock positions constantly like a hawk. (ie. Having constant nightmares and a lot of anxiety). Otherwise, there's the option of index funds.
As a Financial Adviser myself, I can tell you that this is absolutely the wrong mentality and thought process when it comes to investing your money. If you are invested in individual stocks in the market then do your best to educate yourself and create a portfolio that is well diversified with a lot of blue chip stocks. If your plan is to invest, and by that I mean to keep your money in there for a long time, you need to invest and leave it be for years. There will always be ebb and flows in the market and if you watch your portfolio like a hawk you'll panic and make stupid decisions. If you invest your money with a goal of long term growth, you're better off investing the money and not looking at it for 5 years.
Old 10-13-15, 11:06 AM
  #13  
DVD Talk God
 
kvrdave's Avatar
 
Join Date: Aug 1999
Location: Pacific NW
Posts: 86,189
Likes: 0
Received 2 Likes on 2 Posts
Re: Short term investment advice post-real estate sale

BJacks, why not buy the place now? Seems like a decent place to park your money. If RE in the area is appreciating, that is a better place to park money than a CD. In other words, if the market is appreciating even by 2%, you'd be better off buying now.
Old 10-13-15, 02:35 PM
  #14  
DVD Talk Ultimate Edition
Thread Starter
 
Join Date: Jan 2002
Location: Connecticut
Posts: 4,472
Likes: 0
Received 0 Likes on 0 Posts
Re: Short term investment advice post-real estate sale

Originally Posted by kvrdave View Post
BJacks, why not buy the place now? Seems like a decent place to park your money. If RE in the area is appreciating, that is a better place to park money than a CD. In other words, if the market is appreciating even by 2%, you'd be better off buying now.
The place I'm looking at is new construction and won't be available until early next year (it's a second round of townhouses that are going up). I keep hounding the sales agent to keep me updated so I can purchase it sooner rather than later.

Thanks everyone for your advice and suggestions, I really appreciate the insight and knowledge of this group.

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


Thread Tools
Search this Thread

Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.