Short term home profit

Submitted by amboy4463 t3_z8rlfc in personalfinance

We sold our house and made a fair amount of money. I currently have the profit in my savings account waiting for the market to drop more to purchase another home. I am hesitant to invest any of it currently as I may need it within a couple years. What are my “safest” options?

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BoxingRaptor t1_iycvnpk wrote

With a horizon that short, the common advice will likely be to just stick it in a HYSA.

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lucky_ducker t1_iyd43i4 wrote

Money Market Mutual Funds (MMMFs) are yielding slightly more than HYSAs right now, examples SWVXX, SPRXX, VMFXX.

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zwzwzw19 t1_iycw3pn wrote

HSYA, or treasuries if you know the timeline for needing the money and can then hold to maturity.

Also remember to set aside $ in HYSA if you will owe any capital gains taxes. Possible since you mentioned it’s short term. Taxes are owed if lived/owned under 2 years.

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amboy4463 OP t1_iycxypm wrote

Short term meaning it will be in savings for short term. No taxes owed. Thanks for the feedback!

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