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Updated 18 days ago on . Most recent reply

What should I do with this 100k sitting in my savings?
Hey Biggerpockets family!
My name is Austin, and I’m super excited to be here! I’ve been passionate about real estate, stocks, investing, and business for as long as I can remember, and I’ve been self-educating in real estate for a while now. To be honest, it’s a bit funny—I've spent so much time learning, I should have already done a deal by now! But there's a reason I haven’t pulled the trigger yet: I’m currently incarcerated, with about six years left to go before my release.
Despite that, I’ve been following Biggerpockets for years, Youtubing, reading books etc. I truly believe that the knowledge I’ve gained here will play a huge part in turning my life around when I get out. The goal is real estate, and I’m determined to use my time to prepare for that future.
One of the things I’ve been struggling with is what to do with my finances in the meantime. I inherited roughly $160K from my beloved mother in January 2023, and I’ve put about $56K of that into the stock market that same year—mostly in index funds like VOO and QQQ, along with a few individual stocks like NVDA before the split. Since I got in during the bear market, I'm happy with my stock portfolio's 37% gain, despite market uncertainty. However, I still have $100K in a savings account earning just 2.25% APY.
Recently, I’ve been thinking a lot about inflation, opportunity cost, and time value of money (TVM). I’m not sure if I should move the savings into a CD, put it into an index fund, or explore something like private lending or gator lending. My ultimate goal is to use this money as seed capital for my real estate ventures when I get home, so it’s important that this capital stays safe as possible until then. That’s why I’ve kept it in the savings account, but I’m open to suggestions.
I’ve been wrestling with this dilemma for a while, and finally, I’ve found the courage to reach out to you all—the best forum on the planet! I can’t wait to network and learn from everyone here.
Thank you for your time, and I look forward to connecting with you all soon!
Ps. I’ll be looking to invest in the Philadelphia metro area, Wilmington, DE, and Tulsa Ok.
Best,
Austin
Most Popular Reply

Ah, I totally missed in your first paragraph the details of your current situation. I'm sorry to hear, but I'm doubly impressed by your desire and commitment to all of this!
I'll be honest, I don't fully know if there are any restrictions for your investments or taxes given your situation. It's worth looking into further. But, assuming you are (and will be) in this low tax bracket for the next 6 years, that actually provides you with a handful of opportunities.
I would continue to learn about the tax loss harvesting and other tax situations, but moreso for future knowledge. For your current situation, if you are in a low enough tax bracket to utilize all of the low tax incentives.
Honestly, if your timeframe is 4-6 years, I would not look at CD's. I think it's too conservative for your timeframe. I think you could easily invest that money in the market and see some gains in that timeframe. Then like you said, sell prior to your tax situation changing.
I admire your desire to learn all of this. I also acknowledge that our prison system doesn't really set you up for rehabilitation or success.
Your situation & questions are a bit more complicated and nuanced than a forum post can cover. Feel free to message me. I'll give you my contact info and we can keep in touch as much as you're able.
I'd be happy to help however I can. I'd love to see you walk out in 6 years with your head held high. Making your family and the person who left you this inheritance proud...