What to do with a 5k CD about to mature

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tman9940
Posts: 288
Joined: Tue Aug 11, 2015 11:44 pm

What to do with a 5k CD about to mature

Post by tman9940 »

I have a CD maturing at the end of the month. It should be around 5300 or so after maturity. Trying to decide on what to do with the money. I’m single, no kids, rent, paid off car, no debt. Should I…

Put towards ROTH IRA (would be able to max out with this money)
Put towards savings (house down payment and emergency fund)
Open another CD
Something else?
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arcticpineapplecorp.
Posts: 14916
Joined: Tue Mar 06, 2012 8:22 pm

Re: What to do with a 5k CD about to mature

Post by arcticpineapplecorp. »

tman9940 wrote: Sun Feb 11, 2024 9:19 pm I have a CD maturing at the end of the month. It should be around 5300 or so after maturity. Trying to decide on what to do with the money. I’m single, no kids, rent, paid off car, no debt. Should I…

Put towards ROTH IRA (would be able to max out with this money)
Put towards savings (house down payment and emergency fund)
Open another CD
Something else?
do you have sufficient emergency fund already?

are you planning on buying a house? If so, when and how much do you need?

depending on the answers to the questions, the advice could vary.

If you don't have sufficient emergency fund, then that's where the money should go.

if you have sufficient emergency fund, but not house savings, and you are planning on buying in the near term, then that's where the money should go.

if you have sufficient emergency fund and house savings and don't need the money for the long term, then I'd max out the Roth.
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mortfree
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Joined: Mon Sep 12, 2016 7:06 pm

Re: What to do with a 5k CD about to mature

Post by mortfree »

Roth contribution
Mid-40’s
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Wiggums
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Joined: Thu Jan 31, 2019 7:02 am

Re: What to do with a 5k CD about to mature

Post by Wiggums »

A Roth IRA is a great idea.
"I started with nothing and I still have most of it left."
Johm221122
Posts: 6342
Joined: Fri May 13, 2011 6:27 pm

Re: What to do with a 5k CD about to mature

Post by Johm221122 »

tman9940 wrote: Sun Feb 11, 2024 9:19 pm I have a CD maturing at the end of the month. It should be around 5300 or so after maturity. Trying to decide on what to do with the money. I’m single, no kids, rent, paid off car, no debt. Should I…

Put towards ROTH IRA (would be able to max out with this money)
Put towards savings (house down payment and emergency fund)
Open another CD
Something else?
Not enough information but I'm kind of worried you have been on this forum for 9 years and you don't know that we would need more information to give you a good answer.

I was ready to welcome you to forum and link getting started

https://www.bogleheads.org/wiki/Getting_started

I'm not trying to be rude but after 9 years you should know personal finance requires personal information to give a good answer
tashnewbie
Posts: 4118
Joined: Thu Apr 23, 2020 12:44 pm

Re: What to do with a 5k CD about to mature

Post by tashnewbie »

Johm221122 wrote: Sun Feb 11, 2024 11:43 pm
tman9940 wrote: Sun Feb 11, 2024 9:19 pm I have a CD maturing at the end of the month. It should be around 5300 or so after maturity. Trying to decide on what to do with the money. I’m single, no kids, rent, paid off car, no debt. Should I…

Put towards ROTH IRA (would be able to max out with this money)
Put towards savings (house down payment and emergency fund)
Open another CD
Something else?
Not enough information but I'm kind of worried you have been on this forum for 9 years and you don't know that we would need more information to give you a good answer.

I was ready to welcome you to forum and link getting started

https://www.bogleheads.org/wiki/Getting_started

I'm not trying to be rude but after 9 years you should know personal finance requires personal information to give a good answer
+1

And I second the response of @articpineapplecorp about the hierarchy of options.
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