Where to temporarily place money

[namasteak]

I am unexpectedly receiving $35,000 from my moms life insurance policy. It has been 4 months since she passed but only a few weeks since I found out about this and I have no idea what I want to do with it. I know I want to honor her wishes and put some aside for my boys first home DP but haven’t decided how much or where to put it and certainly haven’t decided what to do with the rest. Maybe college funds or home renovations or least likely moving.

Where would you put this for 2-8 months? I say that timeline because I told myself I wouldn’t make any big decisions for at least 6 months to a year after she passed.

[goldengirlz]

Truthfully, I would just keep it in a savings account. Any investment vehicle that will give you a higher return will either require a longer time period or will mean higher risk.

You could probably do a six-month CD (certificate of deposit) but interest rates are so low right now, I’m not sure it’s worth losing the flexibility.

[sadlebred]

I'd put it in a savings account, let it sit while you decide to do with it, and not worry about it for a few months.

[ohgillian]

Ditto the others. It's definitely FINE to let this sit in a savings account for several months, or honestly, even a year or two. You are missing out on such a tiny amount of interest earnings elsewhere that it's not worth the stress given the circumstances.

[dcn]

Yes I agree I’d park it in a savings account until you decide what you’d like to do.

[namasteak]

Thanks everyone!

I wasn’t sure if our schwab account was best since it’s fairly easy (within a few days) to get money out if needed.

[ohgillian]

Apr 13, 2021 9:56:12 GMT -5 namasteak said:

Thanks everyone!

I wasn’t sure if our schwab account was best since it’s fairly easy (within a few days) to get money out if needed.

Since you already have accounts there, yes, I'd find a way to just park it there uninvested. I wasn't saying that you should open a new account at a new bank. Basically make this as logistically easy on yourself as possible.  

[hbomdiggity]

I would just put it in a regular savings account.

I don’t think you need to open up a completely new account, but I probably wouldn’t commingle it in your regular joint account. Inheritance is likely separate property so you may want to keep it readily distinguishable from your regular income and other joint assets. I would see if you can open another sub account or something to keep it separate.

[namasteak]

Apr 13, 2021 10:34:38 GMT -5 hbomdiggity said:

I would just put it in a regular savings account.

I don’t think you need to open up a completely new account, but I probably wouldn’t commingle it in your regular joint account. Inheritance is likely separate property so you may want to keep it readily distinguishable from your regular income and other joint assets. I would see if you can open another sub account or something to keep it separate.

Oh I hadn’t thought of that but now that you say that I do remember reading that on here before.

In all likelihood most of it will get spent on renovating this house but I can’t make that choice yet.

[mrsd2006]

I would put it in an Amex personal savings account. The interest is higher than a regular bank savings account.