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While you are waiting on where it might be invested, I would at least park it in a money market account. Many are paying over 5% right now.
Then I would keep about 2 years of living expenses in that account and invest the rest.
Research Jack Bogle's portfolio suggestions.
650 K sitting in local savings want to earn more
Any ideas are welcome
Your banker must LOVE you. What are you earning 1% +/- ?
TRlaura has some good advice with the money market or you could lock in longer-term yet slightly lower rates with a CD. You could also look at buying government bonds which would increase in value IF they lower rates.
Stock market? This is my opinion; the equities market is incredibly overvalued at the moment. Do I expect a crash? I don't know and neither does anyone else. Just looking at the S&P 500 Sales Per Share how much higher can it go?
(https://ycharts.com/indicators/sp_50...e%20year%20ago.)
The bottom line is how much more upside does an overvalued market have? In my opinion, this is not the time to invest a large amount of cash for a buy-and-hold investor.
Money market at on line bank or CD's
The stock market is where you should be if you want the money to grow over the years. Say at least 5 years if not 10
I have about 600k in bank CDs at 5% or more. That's plenty good enough for me, for now. My market-playing days are over. But if I were younger I would do exactly what I did when I was younger, namely invest in a sensible mix of conservative and less conservative stocks.
What percentage yield are you earning on the $650k? Where did the money come from, what is its intended use purpose, and how long has it sat there? A typical local bank "savings" account earns less than 1%. Keeping such an enormous balance in a low-yield savings account is financial malpractice. Not only is the bank screwing you, but you are screwing yourself. You can earn 5%+ in money markets through Fidelity, Vanguard, and others. However, considering the size of the balance, I would recommend hiring a good reputable wealth manager who is a fiduciary and having them invest it.
I simply transfer to my brokerage account (Fidelity) where my core account is a money market currently paying 5%. Movement in either direction is initiated online at Fidelity and happens within minutes.
We need some more information. What is this money for? Retirement? Something else? Are you willing to put some of it in the stock market?
Wall Street Journal publishes daily on current rate for money market,JUMBO CD of different banks,you can get an idea .
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