Asked anonymously

We are thinking about selling our rental property and not doing a 1031 exchange. What are your suggestions on where to place that money after?

Equity after capital gains tax and realtor fees would be in the neighborhood of $95,000-100,000.

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  1

August 02, 2018

It really depends on what your plans are with that money. If you are looking to spend the money or make a large purchase within the next few years, you may want to look at something safe and liquid or with a short-term commitment. As of today's date, there are online savings accounts paying as high as 1.85% (of course those rate may drop, but can also go up). You may also consider short-term Certificates of Deposit (CDs), where perhaps you keep some money liquid, and ladder the rest of the funds in CDs with various terms such as 12 months, 18 months and 24 months.
Now, if you are not planning on any large spending in the short term and are looking to invest for the longer term, I would suggest you consult with a financial advisor to explore all of your options. Depending on your time horizon, risk tolerance, goals and overall financial situation, it is all about finding an investment strategy that is suitable for your specific situation. Without knowing all the details about your individual needs it would not be possible to properly advise you on how to invest.

$commenter.renderDisplayableName() | 01.17.21 @ 10:14