Where do I put a big chunk of money?
The bits of pieces of my divorce are wrapping up and sometime in the next month I am going to get a check for my piece of the equity in our home. It's low 6 figures. I'm not in a position to purchase a home at this time. I have no reliable income to qualify for a mortgage other that spousal/child support at this time, and I signed a year lease on an apartment. But this money is "down payment for the future" in my head. Maybe in the next 2-5 years I can buy something small (cali is expensive).
Where should I put it?
I currently have a bank account at a credit union with a checking and a savings. My retirement accounts have not been transfered over from the divorce so I don't really have access to those, plus this isn't retirement money.
Sorry to hear about your divorce Grogu. I went through it a couple years back. It can be terrible.
As others have stated...just pick one. I used Amex a while back. It had like 3-4% when I did. When the government cuts rates, it affects savings accounts. It's not bait and switch but it does suck. It's also why so many people are putting their money in the market.
If you're really 5 years out on your purchase, invest it in something is my 2 cents. .5% interest won't keep up with inflation. Or invest half of it, keep half of it more liquid.
If you're really overwhelmed, just put it someplace until you have less on your plate. Good luck!
Huge thank you to everyone for their advice on this high yield savings account situation.
I opened an account with Ally. I am going to park my equity there while I get my feet under me, at least another year. Then I am going to look into my time horizon for the purchase of a home, and also possible investment opportunities if I don't purchase a home.
I loved your words of wisdom to not stress, just pick one and go. And also the various decision making systems you all recommended. You all so totally rock and I am very thankful to be here.