what to do with profit from home sale

[mrsjrd23]

I've never had a financial planner or anything like that.  We're in the process of selling out house and will make several hundred thousand profit.  We eventually will put some of it into our new home we purchased but are planning to wait a while.  After repaying ourselves for the move and buying the furniture we need, where should we be putting this money?  I am not good at investing so probably want to find someone to help us but don't know what I'm looking for to do that.  Any guidance?

[flygirl]

If you’re going to need the money in less than 2 yrs I’d probably put it in a cd or savings. I wouldn’t want to do an investment for a short time especially in the current market

[just]

Ditto flygirl.


Depending on what 100,000s means to you, remember that if you leave it in savings, the FDIC insured limit is $250,000 per depositor, per insured bank, for each account ownership category. For most purposes that means that for a joint account (with 2 people) will be insured up to $500k. You can put more than that into the account, jut anything above that isn't insured if the bank collapses - which of course is pretty unlikely. However, it's not difficult to put more than that into another bank or a cd or something.

[Susie]

Jun 8, 2022 11:56:33 GMT -5 mrsjrd23 said:

We eventually will put some of it into our new home we purchased but are planning to wait a while.  After repaying ourselves for the move and buying the furniture we need, where should we be putting this money?  

What do you mean by "eventually"?

What's your mortgage situation on the new home?

Last year we bought our new house, then sold our old one.  We sat on the profits for about 6 months to let the dust settle, and to pay for things like the new hardwood floors and other immediate improvements and expenses associated with the new house.  Then we dumped the remaining proceeds into the new mortgage and re-amortized it.  That lowered our monthly payment and our balance, but didn't shorten our loan term.  We have a nice mortgage rate (2.75%) so reducing total interest was good, but I am not in a hurry to pay it off.

[mrsjrd23]

We have a VA loan so can't do any kind of refinance to lower our monthly payment until after 270 days so we have a 8-9 months to wait to do that, but of course it depends on how much interest rates are. We went from a 2.375% on our home we are selling to 4% on the one we bought. The VA loan allowed us to put zero down so it's a high mortgage right now that I would like to refinance when rates stabilize a little more when we can per the VA terms. But I'm not necessarily looking to dump it all into the house as I think we can invest some of it at some point but I don't know how to go about doing that.

We need to repay our savings that we used for improvements to the house, and need to buy some furniture and install a fence, and I won't be working for the first 3-4 months we are there so after all that, we will have about 325K to do something with.

[madringal]

Jun 8, 2022 18:32:24 GMT -5 just said:

Ditto flygirl.


Depending on what 100,000s means to you, remember that if you leave it in savings, the FDIC insured limit is $250,000 per depositor, per insured bank, for each account ownership category. For most purposes that means that for a joint account (with 2 people) will be insured up to $500k. You can put more than that into the account, jut anything above that isn't insured if the bank collapses - which of course is pretty unlikely. However, it's not difficult to put more than that into another bank or a cd or something.

They could each also open individual accounts which would give them a total of 750k at one institution. Possibly more if the had trusts.