100k Question

If you had a 100k to use a down payment on a new home, but for various reasons couldn’t buy the home until june 2014 what would you do with the money? Let it sit in a savings account earning no interest or get greedy and try to squeeze out a 3-4% return?

An extra $3k on 100k in over a year? Not worth

whatever risky money market you must

be looking at. Or dividend blue chip.

You coud get into munis and hope the bubble doesn’t pop lol

I personally would just keep it in a MMA or something similar.

I would advise putting it in a 1 Year JUMBO CD. That’s too short of a time horizon to do anything else, e.g., if you put it in Senior debt notes but if interest rates go up, you would be faced with potential loss in price after 1YR. Not worth it for the short time horizon.

Ally is offering 1% rate on 1YR CD. You could take that $1,000 and use it to go to dinner and buy a really nice bottle of Champagne to celebrate after you close on the house!

^ That 1K is taxable.

I have the same question, but for a somewhat larger amount of money, and a shorter time horizon (around 6 months).