Where to park cash between sales

[Chris Pelley]

Hello,

My wife and I will soon be collecting net proceeds from a home sale in the 5 figure range. Our plan is to sit on the money for ruffly 6 months while we deal with some other financial things before re-investing into a new property around April. I am seeking advice on a smart place to park the money while we wait so we can gain more interest then the standard 0.1% a normal savings account can offer. Thank you in advance for any and all advise!

[Karl Dowden]

This doesn't quite go to the point of your question, but if you haven't already factored this in, you should look into doing a 1031 exchange to defer paying taxes on your sale. This only applies if the property you are selling and the one you are buying are both investment property and you have to find and buy the new property within a certain time frame (I think three or six months), but it can save you quite a bit on taxes if it works for you.

Otherwise, I'd recommend parking your money in an index fund if you want a relatively safe investment. I'd recommend looking into Vanguard. Fidelity is another commonly recommended investment company, though I wouldn't know what type of investments to recommend for them.

Good luck!