For the last few months, I have had a very pleasant problem: approximately $150,000 in cash sitting in my savings account. Most of this is from the proceeds of selling my condo, plus a little growth from savings and interest. I have been holding off on any big investment decisions for a while, partly out of pure laziness and partly because there are some possibilities floating around for how to use the money.
Wednesday, June 18, 2014
One thing I might do is buy all or part of some real estate Sweetie owns, as since Sweetie isn't working and I am, there could be some tax benefit to me being the one with the mortgage.
Another possibility is going into business with some friends who want to invest in rental real estate upstate. There are some college towns where the investment return on properties is quite attractive. Though I didn't want to be an active, hands-on landlord, I don't mind doing some occasional work and otherwise being a passive investor, and trust the friends involved, one of whom has hands-on experience as a real estate agent and property manager.
And then there's just the stock market. I just bought $20,000 more in mutual funds to add to my E*Trade portfolio. I am tempted to put even more in, figuring I could sell some of my earlier investments if I need to free up cash later.
There's no easy answers, but again, this is a good problem that I am glad to have!