Where is the best place to put my money?

[ocrenter]

yes, there is a war on savers. you are getting almost nothing on savings because that is the way the system intends, it wants you to spend it so you can help stimulate and re-inflate the bubble.

gold is dangerous, and I do see the potential for collapse. I agree with stockstradr on that one.

if you got money, buy cash flowing properties in areas that have already bottomed.

I seriously doubt major metro areas in Cali (not IE or SJQ Valley of course) will see the type of devastating drop seen in Vegas/Phoenix/SW Florida. So sorry stockstradr, I doubt you’ll see that old condo of yours going for $80k ever. (we had a similar condo story: we bought our 880 sqft condo in OC for $250k, sold at $360k, missed the peak by $15k, the same condo is now selling for $160k.) I think that’s the bottom, I am under no illusion that I can pick that one up at $80k within a few years.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[joec]

Even with deflation, home/condo sale prices will still be supported by what comparable rent prices will be so there is going to be some floor on housing assuming people have jobs in the area and people are willing to live there (unlike Detroit which has neither it seems).

An 80k condo at a 5% rate with 20% down is $410/month. A 2 bedroom in the worst areas of San Diego probably rents for more than double that already.

[UCGal]

[quote=lepetitangel]
I want to use this money as part of my downpay for a house in the next 6-month~2 years. With this in mind, would you recommend me keeping it in the stock market? Is that not enough time to get a solid return? Is it a worse idea to put into housing but hubby and I will need a SFH or larger townhome (we currently own a condo/townhome) when we want to have kids.
[/quote]

Given your relatively short horizon, I would keep the money in cash or cash equivalent form.

The advice against gold is valid, IMO… It’s a commodity and can/will have fluctuation/risk.

There are CDs that are paying 2%… it’s not a lot, but it’s something. I’ve been putting my “emergency money” in the highest APR yield CDs I can find at SDCCU. I asked about the penalties for early withdrawal and worst case you give up 180 days worth of interest (principal is untouched). If it’s less than 1 year when you pull the money it’s a 90 day interest hit. Your principal is FDIC insured. You CAN pull the money out whenever you want if you forfeit some of the interest earnings. I’m not sure if all banks work this way – but I just grilled the sdccu person this week because I was figuring out what I’d do if interest rates go up.

Since you say you need the money in the next 6 to 24 months – I would not risk it in the markets (commodity, bond, stock)… Unless you’re willing to lose some of the principal.

[UCGal]

[quote=lepetitangel]
I want to use this money as part of my downpay for a house in the next 6-month~2 years. With this in mind, would you recommend me keeping it in the stock market? Is that not enough time to get a solid return? Is it a worse idea to put into housing but hubby and I will need a SFH or larger townhome (we currently own a condo/townhome) when we want to have kids.
[/quote]

Given your relatively short horizon, I would keep the money in cash or cash equivalent form.

The advice against gold is valid, IMO… It’s a commodity and can/will have fluctuation/risk.

There are CDs that are paying 2%… it’s not a lot, but it’s something. I’ve been putting my “emergency money” in the highest APR yield CDs I can find at SDCCU. I asked about the penalties for early withdrawal and worst case you give up 180 days worth of interest (principal is untouched). If it’s less than 1 year when you pull the money it’s a 90 day interest hit. Your principal is FDIC insured. You CAN pull the money out whenever you want if you forfeit some of the interest earnings. I’m not sure if all banks work this way – but I just grilled the sdccu person this week because I was figuring out what I’d do if interest rates go up.

Since you say you need the money in the next 6 to 24 months – I would not risk it in the markets (commodity, bond, stock)… Unless you’re willing to lose some of the principal.

[UCGal]

[quote=lepetitangel]
I want to use this money as part of my downpay for a house in the next 6-month~2 years. With this in mind, would you recommend me keeping it in the stock market? Is that not enough time to get a solid return? Is it a worse idea to put into housing but hubby and I will need a SFH or larger townhome (we currently own a condo/townhome) when we want to have kids.
[/quote]

Given your relatively short horizon, I would keep the money in cash or cash equivalent form.

The advice against gold is valid, IMO… It’s a commodity and can/will have fluctuation/risk.

There are CDs that are paying 2%… it’s not a lot, but it’s something. I’ve been putting my “emergency money” in the highest APR yield CDs I can find at SDCCU. I asked about the penalties for early withdrawal and worst case you give up 180 days worth of interest (principal is untouched). If it’s less than 1 year when you pull the money it’s a 90 day interest hit. Your principal is FDIC insured. You CAN pull the money out whenever you want if you forfeit some of the interest earnings. I’m not sure if all banks work this way – but I just grilled the sdccu person this week because I was figuring out what I’d do if interest rates go up.

Since you say you need the money in the next 6 to 24 months – I would not risk it in the markets (commodity, bond, stock)… Unless you’re willing to lose some of the principal.

[UCGal]

[quote=lepetitangel]
I want to use this money as part of my downpay for a house in the next 6-month~2 years. With this in mind, would you recommend me keeping it in the stock market? Is that not enough time to get a solid return? Is it a worse idea to put into housing but hubby and I will need a SFH or larger townhome (we currently own a condo/townhome) when we want to have kids.
[/quote]

Given your relatively short horizon, I would keep the money in cash or cash equivalent form.

The advice against gold is valid, IMO… It’s a commodity and can/will have fluctuation/risk.

There are CDs that are paying 2%… it’s not a lot, but it’s something. I’ve been putting my “emergency money” in the highest APR yield CDs I can find at SDCCU. I asked about the penalties for early withdrawal and worst case you give up 180 days worth of interest (principal is untouched). If it’s less than 1 year when you pull the money it’s a 90 day interest hit. Your principal is FDIC insured. You CAN pull the money out whenever you want if you forfeit some of the interest earnings. I’m not sure if all banks work this way – but I just grilled the sdccu person this week because I was figuring out what I’d do if interest rates go up.

Since you say you need the money in the next 6 to 24 months – I would not risk it in the markets (commodity, bond, stock)… Unless you’re willing to lose some of the principal.

[UCGal]

[quote=lepetitangel]
I want to use this money as part of my downpay for a house in the next 6-month~2 years. With this in mind, would you recommend me keeping it in the stock market? Is that not enough time to get a solid return? Is it a worse idea to put into housing but hubby and I will need a SFH or larger townhome (we currently own a condo/townhome) when we want to have kids.
[/quote]

Given your relatively short horizon, I would keep the money in cash or cash equivalent form.

The advice against gold is valid, IMO… It’s a commodity and can/will have fluctuation/risk.

There are CDs that are paying 2%… it’s not a lot, but it’s something. I’ve been putting my “emergency money” in the highest APR yield CDs I can find at SDCCU. I asked about the penalties for early withdrawal and worst case you give up 180 days worth of interest (principal is untouched). If it’s less than 1 year when you pull the money it’s a 90 day interest hit. Your principal is FDIC insured. You CAN pull the money out whenever you want if you forfeit some of the interest earnings. I’m not sure if all banks work this way – but I just grilled the sdccu person this week because I was figuring out what I’d do if interest rates go up.

Since you say you need the money in the next 6 to 24 months – I would not risk it in the markets (commodity, bond, stock)… Unless you’re willing to lose some of the principal.

[Scarlett]

Are you sure about the CD rates in SDCCU? when did you last check?

I am in a similar situation with the OP. I’d love to know where I could get 2% return on a CD. I checked the SDCCU website
sdccu dot com slash pages slash rates slash DepositRates dot pdf

B of America also has less than 1% return on CDs.
At least on the website.

[Scarlett]

Are you sure about the CD rates in SDCCU? when did you last check?

I am in a similar situation with the OP. I’d love to know where I could get 2% return on a CD. I checked the SDCCU website
sdccu dot com slash pages slash rates slash DepositRates dot pdf

B of America also has less than 1% return on CDs.
At least on the website.

[Scarlett]

Are you sure about the CD rates in SDCCU? when did you last check?

I am in a similar situation with the OP. I’d love to know where I could get 2% return on a CD. I checked the SDCCU website
sdccu dot com slash pages slash rates slash DepositRates dot pdf

B of America also has less than 1% return on CDs.
At least on the website.

[Scarlett]

Are you sure about the CD rates in SDCCU? when did you last check?

I am in a similar situation with the OP. I’d love to know where I could get 2% return on a CD. I checked the SDCCU website
sdccu dot com slash pages slash rates slash DepositRates dot pdf

B of America also has less than 1% return on CDs.
At least on the website.

[Author]

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