Where to keep short term reserves now?

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emuK
Posts: 1
Joined: Wed Mar 25, 2020 8:33 am

Where to keep short term reserves now?

Post by emuK » Wed Mar 25, 2020 4:41 pm

My husband and I have been sitting on some cash because we've been looking to buy a co-op apartment in NYC. About 150k is set aside for the down payment in a no-penalty CD at 1.7%. Additionally we have cash in an online savings account (1.5% interest) for meeting post-closing liquidity requirements that co-ops have (they usually require about 2 years of mortgage and maintenance in liquid assets, meaning cash, stocks, bonds).

Any suggestions on where to invest this cash that could potentially earn a bit more than our current online savings account? Balances in retirement accounts don't count towards meeting the liquidity requirements, so this money would be in a taxable account. We're in the 24% tax bracket for whatever that's worth.

Also it's ok if there is a little volatility, but we can't have the value fluctuate too much. I've been looking into VFSTX, VTAPX and VUSXX but I have to confess I don't understand what's going on with bond markets right now...
Last edited by emuK on Wed Mar 25, 2020 7:56 pm, edited 1 time in total.

retired@50
Posts: 1668
Joined: Tue Oct 01, 2019 2:36 pm

Re: Where to keep short term reserves

Post by retired@50 » Wed Mar 25, 2020 7:14 pm

If I were you I'd stick with a money market fund or a CD. Maybe shop around for a decent rate at bankrate.com.

Regards,
Boggle - a game from Parker Brothers. Bogle - investor, founder of Vanguard.

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