Hi there,
I have the Vanguard Cash Plus Account for excess savings, very happy with it.
My retired parents are selling their house in a VHCOL area and will likely be making a large profit in excess of the usual FDIC limits (probably $700-800K in profit). They've asked where they should stick the profits prior to buying a new retirement house in cash in a lower COL area. They are already pushing the FDIC limit at their local bank.
They are not technologically savvy investors. They may need the money in 2 months, or maybe in 12 months - TBD on when the right home goes on the market. They currently have a rental in the new lower COL location. I think the Vanguard Cash Plus Account should be good for their purposes,
Any drawbacks to sticking their money in the Cash Plus account? When they find a home they want, it seems that they would just transfer the money from the Cash Plus account back into their usual checking account at their local bank, wait a couples days for the accounts to settle, then write a check for the new home. Is that the correct process?
Given the bank failures last year and turmoil from CRE, they are very wary of going over the FDIC limits for any significant period of time.
I have the Vanguard Cash Plus Account for excess savings, very happy with it.
My retired parents are selling their house in a VHCOL area and will likely be making a large profit in excess of the usual FDIC limits (probably $700-800K in profit). They've asked where they should stick the profits prior to buying a new retirement house in cash in a lower COL area. They are already pushing the FDIC limit at their local bank.
They are not technologically savvy investors. They may need the money in 2 months, or maybe in 12 months - TBD on when the right home goes on the market. They currently have a rental in the new lower COL location. I think the Vanguard Cash Plus Account should be good for their purposes,
Any drawbacks to sticking their money in the Cash Plus account? When they find a home they want, it seems that they would just transfer the money from the Cash Plus account back into their usual checking account at their local bank, wait a couples days for the accounts to settle, then write a check for the new home. Is that the correct process?
Given the bank failures last year and turmoil from CRE, they are very wary of going over the FDIC limits for any significant period of time.
Statistics: Posted by apres_all_day — Mon Feb 26, 2024 2:23 pm — Replies 359 — Views 41296