Cash? Company purchased

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Mooshie
Posts: 3
Joined: Sat Aug 05, 2017 10:44 am

Cash? Company purchased

Post by Mooshie » Sun Mar 11, 2018 7:25 pm

Good Afternoon Bogleheads,

Company was recently acquired, and received 483,000 after taxes for my shares of equity ( tax man hammered us). I am looking to temporarily park the money for a few months, while I look for rental property opportunities most likely. Where do you recommend we park this cash? Additionally, my job is safe for the time being, it is sales and a new organization so you never know. I would like to walk in 5.5 years, I am fortunate to enjoy what I do, but it comes at a significant cost to time with family etc ( travel 60% of the week YOLO):

Age 39 work in sales ( job is temporarily safe TBD). Current income 300K give or take. Wife works as the CEO of household.

Net Worth 3.3 Million

Primary residence: 650K paid off
5 Rental Properties in Partnership: Total 868K all paid off
Monthly Cash Flow for us: $5500.00

Retirement: 630K in retirement

Cash besides payout: 400,000 ( yep I gotta to do something)

New Cash: 483,00 ( referenced above)

Vanguard: $114,629 (International and domestic)

Betterment: $68,475 (similar breakdown with some bonds)

529: $173,791 ( kiddos are 5 and 3).

Thank you for your input, as I feel like I am learning so much from this group. Obvious from above our play has been real estate, and that has done well for us. However, our city has experienced High appreication and this has given us long pause on investing in our home market, plus I work signifiant hours with a young family and time has been sparse to properly research the real estate investment market.

JoeRetire
Posts: 866
Joined: Tue Jan 16, 2018 2:44 pm

Re: Cash? Company purchased

Post by JoeRetire » Sun Mar 11, 2018 7:56 pm

Mooshie wrote:
Sun Mar 11, 2018 7:25 pm
I am looking to temporarily park the money for a few months, while I look for rental property opportunities most likely. Where do you recommend we park this cash?
That depends on how much risk you want to take for a few months.

If you want to make sure it's all available in a few months, put it in a savings bank. If you don't care if some of it is not available at the end of the few months, invest it.

If it's truly just a few months, it's likely not going to make all that much difference either way.

radiowave
Posts: 1678
Joined: Thu Apr 30, 2015 5:01 pm

Re: Cash? Company purchased

Post by radiowave » Sun Mar 11, 2018 10:18 pm

If you have a Vanguard brokerage account, you can purchase short term Treasury Bills, 3 mo is approximately 1.6% yield, 6 mo is about 1.8% (both annualized returns). Savings in an online bank account like Ally earning about 1.45% and FDIC insured up to $250k/person/account.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

Mooshie
Posts: 3
Joined: Sat Aug 05, 2017 10:44 am

Re: Cash? Company purchased

Post by Mooshie » Tue Mar 13, 2018 7:43 pm

Thank you for the guidance. Looking into VG right away!

RAchip
Posts: 253
Joined: Sat May 07, 2016 7:31 pm

Re: Cash? Company purchased

Post by RAchip » Tue Mar 13, 2018 7:46 pm

Vanguard Prime Money Market

User avatar
David Jay
Posts: 5040
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Cash? Company purchased

Post by David Jay » Tue Mar 13, 2018 8:32 pm

RAchip wrote:
Tue Mar 13, 2018 7:46 pm
Vanguard Prime Money Market
+1
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Post Reply