So I thought this had been discussed before but couldn't find the thread on it. My question is, if you a large chunk of money coming in that you wouldn't need immediately, but would in the near future, where would you park it?
The specifics of my situation so you can maybe have a few more of the particulars: We are closing this week on a cash-out refinance which will both lock in a lower interest rate (got it down to 2.5%) and pull out a sizeable piece of our equity (~$120k). The intended purpose for this money is to be used towards a big renovation we are planning. If the schedule stays on the track we are on, first construction payments won't start for roughly 6-7 months, and will be spread over the 6-9 months following that., so lets say I'll need to access all of this money in about a year. I don't want to take on too much risk with the money since the timeframe is short, but I also don't want to park it at 0.05% interest in a savings account since any modest growth could make a material difference when deciding where we have to trim the renovation to stay on budget. So what say you? Where you you park the money in this situation? or am I being a fool to put it in any thing more risky than an FDIC insured account? I'm open to all thoughts and general TexAgs shenanigans.
Also just for some added clarification, even without touching the house, the cash-out keeps our LTV below 75% so I'm not required to complete the remodel on any specific timeline to satisfy loan terms.
The specifics of my situation so you can maybe have a few more of the particulars: We are closing this week on a cash-out refinance which will both lock in a lower interest rate (got it down to 2.5%) and pull out a sizeable piece of our equity (~$120k). The intended purpose for this money is to be used towards a big renovation we are planning. If the schedule stays on the track we are on, first construction payments won't start for roughly 6-7 months, and will be spread over the 6-9 months following that., so lets say I'll need to access all of this money in about a year. I don't want to take on too much risk with the money since the timeframe is short, but I also don't want to park it at 0.05% interest in a savings account since any modest growth could make a material difference when deciding where we have to trim the renovation to stay on budget. So what say you? Where you you park the money in this situation? or am I being a fool to put it in any thing more risky than an FDIC insured account? I'm open to all thoughts and general TexAgs shenanigans.
Also just for some added clarification, even without touching the house, the cash-out keeps our LTV below 75% so I'm not required to complete the remodel on any specific timeline to satisfy loan terms.