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What to do with $60,000???

June 1st, 2007 at 03:56 pm

Ok, I am opening this up to all of you.........

I have $60,000 sitting in a 12 month CD right now that comes due in August. It is currently earning about 4.90%.

The security of the low-risk CD is nice, however, part of me knows I should have it in something a little riskier.

I am about 2 years away from buying my first house, which this money is for.

I have an idea of what I want to do with it, but I wanted to see what everyone else's opinions were...............

25 Responses to “What to do with $60,000???”

  1. Ima saver Says:

    Well, if you are saving for a house, I would keep it safe. I have my money in a money market savings account paying 5.25. It is appalachian community bank in Blairsville Ga. I think you could find a C.D. with a higher rate too.

  2. homebody Says:

    Shoot the online banks are paying that much for passbook. I would not do anything riskier than a CD if it is for a house in a couple of years.

    Check out bankrate.com for comparison interest rates or Money magazine has a list in the back of current high CD rates.

  3. gremlingolfer Says:

    Ima,

    I wish home prices in No. California were comparable to home prices in Georgia!

    Oh well..........

  4. Lux Living Frugalis Says:


    BTW, I like your 75/25 outlook!!

    For that short a time frame and goal specified I would do as Ima suggests and put it in a high interest money market account. I think if you keep your eye on the real estate market during the next couple of years you're liable to find yourself in a buyer's paradise and cash ready to pop off and buy sounds like a good place to be!

    I'm no market timer, but the stock market is making me a bit nervous these days - I'm still in, but am letting my current retirement contributions sit in cash for awhile.


    Jittery Yours, LuxLivingFrugalis

  5. gremlingolfer Says:

    The thing is I have my $60,000 in teh Bank I work at. It's difficult for me to justify taking my money elsewhere, when the Bank is trying very hard to keep customer's deposits!

  6. Lux Living Frugalis Says:

    Well of course you have to weigh the financial costs and there is some financial validity costs to wanting the Honchos That Be satisfied w/you overall! Does your bank's Money Market rate beat your CD rate?

    Have you posted your question over on the forums? Lots of savy folks over there who might have better suggestions.

  7. Ima saver Says:

    You know, I have quite a bit of cash now. I talked to one of the bank presidents and told him the reason I did not have any money in his bank, is that I could get 5.7 % for a c.d. at another local bank, Cadence.
    I told him I would put some money there if he could give me a better rate, and he gave me a 5.5% c.d. Talk to your president, he can give you a higher rate.

  8. Ima saver Says:

    BTW, homes in my area are pretty expensive, even in Georgia. My house would go for about $600,000-700,000 right now.

  9. Aleta Says:

    I agree with many on this forum. You need to keep that money fairly safe for a couple of years if you're saving for a house or even if you had an emergency fund.

    I am with http://www. fnbodirect.com and you can get 6% until the end of September for an online savings account. There is no minimum.

  10. creditcardfree Says:

    Do not put that money in the stock market since this is for a short term goal. As everyone else said, just find the highest interest rate you can in a CD or money market regardless of where it is.

  11. gremlingolfer Says:

    The President of the Bank I work at is my Dad!

    I will put my leverage to good use!

  12. homebody Says:

    Hahahaaa I think you are stuck at your bank! Or maybe you could sneak a little over to an online bank!

  13. Ima saver Says:

    Ask dad, it can't hurt. The lady that opened mine say that the highest they pay is 5 % on a jumbo C.D. but the president gave me 5.5%

  14. tenar Says:

    keep it in a CD but try and get one that pays higher

  15. gremlingolfer Says:

    I'm thinking of going to Vegas and putting it all on Red on teh roulette table.

  16. Frugal Momma Says:

    $60k is a good size down payment. Make sure you are about to buy a house that you have a decent emergency fund as well.

  17. katwoman Says:

    I'm confused. You say you're 2 years away from buying your first house. 60K is a nice chunk of change so why not buy your first condo today and then trade up to a house in 2 years. I bet you'll make more in housing appreciation (not to mention a tax deduction for a mortgage) than your 60K will make in a CD over the same period of time. Just a thought.

  18. gremlingolfer Says:

    Kat,

    Condo's in my area still for around $200,000. My oncome would not support the payments if I live by myself and I don't really want to take on a roomie.

    Plus, I'm not sure if I will be in the area a year from now.

  19. scfr Says:

    Tell your dad that if he wants to keep customers he is going to have to raise his rates! When he does raise the rates, be sure to post the info on here in case any of us Savings Advice users are interested!

  20. Lucrati Says:

    check out lucrativedreams.com for some interesting investment strategies

  21. Nic Says:

    It's YOUR money. If your Dad/bank can't do better,move your ca$h. As an example, I worked for 20 years for a major tele-com and yet had my phone service w/another company. MY money,my deci$ion. I currently work at an animal clinic yet I have NO problem seeking a second opinon for my pets. Business is business.

  22. SicilyYoder Says:

    I would leave it there because you don't want to buy mutual funds etc, if your investing less than 5 years. Get a 15-year mortage, not 30- but, being a loan officer, you probably alreayd know that.

  23. Tim Says:

    t-bills or high yield savings w/higher rate. since 2 years, then put half into index funds.

  24. TD Says:

    I would suggest consulting a financial advisor as as I think a good one can help you with the $60k decision and ensure you build a solid long-term plan.

    I work with thousands of different financial advisors and would be happy to connect you to one in your area. I am not affiliated with any firm -- I consult for firms that want to work with financial advisors -- so I will faciliate an intro by email that will hopefully will give youa few options.

    Please feel free to email me at tdickson@advisorcentric.com if you want help.

    Good luck
    Tom

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