How to adjust my AA to pay for a large cash investment in 2 years

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Kalergie
Posts: 42
Joined: Mon Sep 16, 2013 8:19 am
Location: Europe

How to adjust my AA to pay for a large cash investment in 2 years

Post by Kalergie » Sun Aug 19, 2018 11:02 am

So I currently have a portfolio of 100% equities. I am considering investing in an off-plan real estate project which requires me to cash flow 50% during construction PLUS the remainder as a lump sum on hand-over. The first 50%, I can cover with my current income but the remainder would have to be sourced from my current equity portfolio. Obviously, a market downturn just before the lump sum is due would be painful. I am therefore considering converting the amount I need in 2 years into something a little bit more stable than equities. What options do I have? Bonds, CDs, cash?
Thank you.

Dottie57
Posts: 4656
Joined: Thu May 19, 2016 5:43 pm

Re: How to adjust my AA to pay for a large cash investment in 2 years

Post by Dottie57 » Sun Aug 19, 2018 11:09 am

Kalergie wrote:
Sun Aug 19, 2018 11:02 am
So I currently have a portfolio of 100% equities. I am considering investing in an off-plan real estate project which requires me to cash flow 50% during construction PLUS the remainder as a lump sum on hand-over. The first 50%, I can cover with my current income but the remainder would have to be sourced from my current equity portfolio. Obviously, a market downturn just before the lump sum is due would be painful. I am therefore considering converting the amount I need in 2 years into something a little bit more stable than equities. What options do I have? Bonds, CDs, cash?
Thank you.
Short term treasuries or cds sre the safest. Do you know the month the money is needed?

Kalergie
Posts: 42
Joined: Mon Sep 16, 2013 8:19 am
Location: Europe

Re: How to adjust my AA to pay for a large cash investment in 2 years

Post by Kalergie » Sun Aug 19, 2018 11:12 am

Yes, I know the day. Depending that the construction is on schedule. Silly question maybe, how do I buy CDs? Can I do it through Interactive Brokers?

Flyer24
Posts: 381
Joined: Sun Apr 08, 2018 4:21 pm

Re: How to adjust my AA to pay for a large cash investment in 2 years

Post by Flyer24 » Sun Aug 19, 2018 11:21 am

You can get them from your local bank or many online banks. Ally has pretty good rates.

Kalergie
Posts: 42
Joined: Mon Sep 16, 2013 8:19 am
Location: Europe

Re: How to adjust my AA to pay for a large cash investment in 2 years

Post by Kalergie » Thu Aug 23, 2018 6:20 am

I am not a US resident. Is there any fixed deposit like vehicle accessible through interactive brokers? Thanks.

User avatar
djpeteski
Posts: 665
Joined: Fri Mar 31, 2017 9:07 am

Re: How to adjust my AA to pay for a large cash investment in 2 years

Post by djpeteski » Thu Aug 23, 2018 6:32 am

It does not look like you can buy and trade CDs from interactive brokers, but you can do so with bonds:

https://www.interactivebrokers.com/en/index.php?f=17177

Can you create a Fidelity/Vanguard/Schwab account with some of your assets? All offer the ability to purchase CDs for free.

Post Reply