Where to park ~$30k?

[14Accent]

I know, I know: this isn't a financial advice website. That being said, I trust the input and advice of my fellow members MUCH more than some broker trying to sell me a service.

I'll keep it short and sweet: After paying off ALL my debts, I have about $50k left from the sale of my home. I would like to keep $20k on hand as an emergency fund, so I've got $30k to park somewhere and let sit. The only current expenses are normal day-to-day items and utilities, we have no mortgage/CC/auto debt. There are no major expenses coming up (we did just have to replace our dryer, found a brand new Maytag at the used appliance place for $330 delivered).

There is a piece of property just around the corner from us that's left over from a house fire last year. It's ready to go with well/sewer/electric, and I think I could pick it up for ~$20k. Property taxes on the land are maybe $600/yr.

Outside of that, I have no idea. I'll be contributing to my 401k at JD, they match 30% of contributions up to my first 7% of income so there's that. What would you do?

 

[Blueshound]

I'd put the whole 50 into a high yield savings account. 20 is not enough cash on hand.

 

[mrsilv04]

What are the plans for the piece of property? Future homesite?

 

[goingplacesanddoingstuff]

I’d buy that land for sure. If there was money left over I’d also go on vacation or buy something nice at that point. The whole purpose of being financially stable is to be able to freely enjoy life. So do it! Have fun! You earned it!

 

[ATex7239]

I'd put the whole 50 into a high yield savings account. 20 is not enough cash on hand.

That is subjective to the individual. No expenses and good cash flow coming in that could be plenty.

 

[goingplacesanddoingstuff]

That is subjective to the individual. No expenses and good cash flow coming in that could be plenty.

Plus 50k in a high yield savings account isn’t going to earn much on a monthly basis. It’s extremely low risk, but also relatively low reward.

It depends on how old you are too. If younger, be riskier.

 

[Vil_Riker]

treasurydirect.gov short term bond.

 

[eljefino]

With that property, could you plunk a mobile home down on it and rent it out?

I locked some money up in I-bonds when they were paying 9% then wished I hadn't. You could do a CD ladder and be less than 30 days away from some of your money.

 

[atikovi]

$50K in a bank savings account yields about $210 a month with today's interest rates. You can access it any time. Risk and hassle free way to make some money to help with the bills, but you won't get rich with it. How much will it cost to build on this land and what could you sell it for?

 

[Pew]

I've got a bed you can store it under

 

[ATex7239]

Plus 50k in a high yield savings account isn’t going to earn much on a monthly basis. It’s extremely low risk, but also relatively low reward.

It depends on how old you are too. If younger, be riskier.

Yeah. If you want the money to make money then saving accounts generally no good. If you want the money be a safety net or liquid then they are extremely good.

 

[JohnnyG]

Fidelity Treasury Port Institutional Class
FRBXX
5.16%

 

[atikovi]

Fidelity Treasury Port Institutional Class
FRBXX
5.16%

Is that federally insured? No fees or commissions?

 

[BMWTurboDzl]

I know, I know: this isn't a financial advice website. That being said, I trust the input and advice of my fellow members MUCH more than some broker trying to sell me a service.

I'll keep it short and sweet: After paying off ALL my debts, I have about $50k left from the sale of my home. I would like to keep $20k on hand as an emergency fund, so I've got $30k to park somewhere and let sit. The only current expenses are normal day-to-day items and utilities, we have no mortgage/CC/auto debt. There are no major expenses coming up (we did just have to replace our dryer, found a brand new Maytag at the used appliance place for $330 delivered).

There is a piece of property just around the corner from us that's left over from a house fire last year. It's ready to go with well/sewer/electric, and I think I could pick it up for ~$20k. Property taxes on the land are maybe $600/yr.

Outside of that, I have no idea. I'll be contributing to my 401k at JD, they match 30% of contributions up to my first 7% of income so there's that. What would you do?

6mo CD paying over 5% APR?

 

[JohnnyG]

Is that federally insured? No fees or commissions?

Since Fidelity is involved, there's likely a fee. But yes, insured AND LIQUID.

Also have a 6 month CD @5%, but penalties for early withdrawal.

 

[atikovi]

Since Fidelity is involved, there's likely a fee. But yes, insured AND LIQUID.

Also have a 6 month CD @5%, but penalties for early withdrawal.

Not bad rate until you consider the fees. Bank savings accounts pay that and more with no fees if you look hard enough.

 

[Pablo]

Since Fidelity is involved, there's likely a fee. But yes, insured AND LIQUID.

Also have a 6 month CD @5%, but penalties for early withdrawal.

No fee.

 

[millerbl00]

BUY the LAND!

 

[Pablo]

Not bad rate until you consider the fees. Bank savings accounts pay that and more with no fees if you look hard enough.

Why are you assuming so much?

 

[loneryder]

I know, I know: this isn't a financial advice website. That being said, I trust the input and advice of my fellow members MUCH more than some broker trying to sell me a service.

I'll keep it short and sweet: After paying off ALL my debts, I have about $50k left from the sale of my home. I would like to keep $20k on hand as an emergency fund, so I've got $30k to park somewhere and let sit. The only current expenses are normal day-to-day items and utilities, we have no mortgage/CC/auto debt. There are no major expenses coming up (we did just have to replace our dryer, found a brand new Maytag at the used appliance place for $330 delivered).

There is a piece of property just around the corner from us that's left over from a house fire last year. It's ready to go with well/sewer/electric, and I think I could pick it up for ~$20k. Property taxes on the land are maybe $600/yr.

Outside of that, I have no idea. I'll be contributing to my 401k at JD, they match 30% of contributions up to my first 7% of income so there's that. What would you do?

There are money market funds out there paying 4+%. Good place to park it until you decide what you want to do. Congrats on getting out of debt.