need advice and thoughts

**creditcardfree** · 04-04-2010, 10:48 AM

Could you give more specifics? Is this an annunity payout, where there are stipulations on the money? Or just tax free life insurance proceeds? What are you doing with the money? What are your goals?

More than likely I would pull the money out, just to feel that I had control of the decision on where to put it. If I'd be using a good portion of it for something in the next five years, I'd keep it in something stable. Otherwise, I would look to invest it to provide growth.

**cicy33** · 04-04-2010, 11:00 AM

it is a tax free life insurance proceed. it is being sent to us fully useable in a money market. They are sending checks for us to write. The part that is staying in the money market or whatever we put it in needs to be fully accessible.

**disneysteve** · 04-04-2010, 01:09 PM

Originally posted by cicy33 View Post

it is a tax free life insurance proceed. it is being sent to us fully useable in a money market. They are sending checks for us to write. The part that is staying in the money market or whatever we put it in needs to be fully accessible.

What is the interest rate on their money market and can you do better elsewhere? Chances are, you can do better if you move the money. Go to that thread on this forum that updates the highest rates.

**creditcardfree** · 04-04-2010, 01:12 PM

It does sound like you need to keep in some sort of money market account if you need accessiblity, so I agree with Steve look around for your best rate and notice any fees that the banks might charge. There are also limits on the number of withdrawals per month on many money markets, so check into those also.

**disneysteve** · 04-04-2010, 01:17 PM

Originally posted by creditcardfree View Post

There are also limits on the number of withdrawals per month on many money markets, so check into those also.

Not just limits on the number of transactions but limits on the amounts. For example, I have a money market with check writing but the checks must be for at least $500. If you anticipate having to write smaller checks, that account wouldn't be useful for you.

**cicy33** · 04-04-2010, 01:58 PM

Thanks for the responses. These are things that I did not think about or know.

**heidrek** · 04-05-2010, 07:20 PM

I'm in a similar (but different situation) - recently inherited my fathers home along with my 2 siblings. Trying to decide whether to rent or sell it, market isn't great at present, but we're not sure we should put tenants in it in case they damage the place?

**jIM_Ohio** · 04-05-2010, 07:41 PM

If you know what you are doing with the money, why leave it in current MM?

If your plan is to slowly spend the money, a regular bank account is probably more efficient... and I would rethink this plan financially as well.

**cicy33** · 04-06-2010, 03:56 AM

Originally posted by jIM_Ohio View Post

If you know what you are doing with the money, why leave it in current MM?

If your plan is to slowly spend the money, a regular bank account is probably more efficient... and I would rethink this plan financially as well.

Because there will be some amount sitting for a period of time and would like to gain interest on that. Savings accounts I know are very low. If a wire transfer weren't so expensive I would just transfer it to my account in nc where I get 4%. however, based upon here and a little internet research we will be pulling it out of the money market. probably put it in a savings account for now.

**cicy33** · 04-06-2010, 03:58 AM

Originally posted by heidrek View Post

I'm in a similar (but different situation) - recently inherited my fathers home along with my 2 siblings. Trying to decide whether to rent or sell it, market isn't great at present, but we're not sure we should put tenants in it in case they damage the place?

On this I would personally determine if you can get enough rent to make it worth your while. If you get along with siblings that is important. You will all three have to split the income, not sure how that works. Is the house paid for? as far as tenants damaging the place you need to charge a deposit and do background checks. make them fill out an app and call the references on there.

**disneysteve** · 04-06-2010, 05:14 AM

Another consideration depending on your liquidity needs and your timeline is to build a ladder of 1-year CDs so that one matures every month or two.

**jIM_Ohio** · 04-06-2010, 05:31 AM

Originally posted by cicy33 View Post

Because there will be some amount sitting for a period of time and would like to gain interest on that. Savings accounts I know are very low. If a wire transfer weren't so expensive I would just transfer it to my account in nc where I get 4%. however, based upon here and a little internet research we will be pulling it out of the money market. probably put it in a savings account for now.

This implies you also know WHEN you will access the money?

Have you considered a CD?

If you use a MM the apr changes daily
If you use a CD you lock in the return.

If the CD is 3-6 months duration, I see little risk locking in the return if its higher than MM
if CD is between 6-36 months, if rates go up you can usually break CD and pay 3 months interest (check terms on your CD at your bank though- terms vary). IMO it would take a huge jump in rates to make a 6-36 month CD worth cashing in.
If the CD is 36 months or longer, you can probably turn in CD early, pay the penalty, then open a new one and still profit.

If all that sound like too much risk on interest rates, use a CD ladder. Meaning open one 12 month CD, one 24 month, one 36 month, one 48 month etc...

each CD will have a different rate (locked). When the 12 month CD matures you can then open a new CD with a new rate at that time, while all the other CDs are using the original rates you locked in.

**cicy33** · 04-22-2010, 07:50 AM

I do appreciate all responses and welcome any others. We are still tossing around ideas. nothing set in stone yet. One primary thought is to start our own business. risky yes, but feel we can make it work. wouldn't take it all and that would be the part set aside but want to be able to access it if necessary.

**EEinNJ** · 04-22-2010, 10:15 AM

I had a similar situation 10 years ago when my first wife died- her employer's life insurance quickly sent me a check. On the other hand, my employer at the time, a large, maternalistic corporation, had a MetLife spouse policy. They put the money in a MMA with checking. They even sent a newsletter every month with all kinds of tips & advice about dealing with grief, taking your time to make decisions, etc.
I didn't really need that kind of hand holding, but it was well-intentioned aspect of the benefit, as opposed to "Sorry for your loss, here's a big check, be on your way".

The money was there if I needed it, but I didn't have to make any decisions, either. I would agree that there's no reason to rush to find a few extra dollars of low-rate interest, nor take on risk until you're sure what you want to do. These situations (windfalls, insurance payouts) don't happen often in most people's lives, so you're not going to get a "do-over"

need advice and thoughts