I have some 290k USD in cash. I was told by a friend that u should never invest down payment of ur home and so I followed it and it helped me enormously. All of this money was investment in individual stocks back in 2021 dec and had it would been like that, it would have reduced to less than 200k easily. So based on his advice, I liquidated all my assests in Jan of 2022 right before the melt down. However, since housing also went out of wack, we were not able to buy that too so this cash as of today is sitting as is. 50% of is in fidelity money markets so I am atleast getting some returns there but the other half is in banks with absolutely zero growth. Now looks like we dont intend to buy the house any sooner as we plan to move back to India in 2-3 years hopefully (it is tentative though). Also we are no longer in US but in Canada. Any advise on how I can grow this 290k cash with least possible risk. I intend to take all this cash wiyh me to India and buy a house in cash there 2-3 years from now.
uS government bonds that mature in 2-3 years, currently yielding a smidge more than 5%
When you buy a CD the bank turns around and buys a bond with that money, so keep those few basis points of margin for yourself. Also, you can sell your bond anytime , you don't have to hold til maturity. Downside is it's not FDIC insured like a savings deposit is.
^ that's interesting, do you mean they buy US Gov bonds?
Capital one CD 5%
Short term CDs in US, India has quite a lot of balanced Mutual funds and recently opened retail bonds to invest your left over money..
do you guys have something to recommend for canadian market ?
GICs would probably be the best idea. Guaranteed rate. As long as you leave it in for the amount of time specified in the terms it will gain. Lower return than you might get with other methods, but it’s a guaranteed rate of return. If you don’t plan on taking it out for a year or longer, this is a good option.
may I ask full form of GIC ?
Tbills
Robinhood, 4.15% for cash holdings
Why the 180 around buying a place to moving in 2 years?
I feel done with abroad ..want to go back to India. Also we had a baby in covid and before baby life was much easy here. Since covid life has been rough and we need support system.
Also I realized I dont want to take 1.5 million CAD loan for housing given that I can buy a 2-3 crore home in India in cash. Will feel financially independent too.
Short term treasury will yield around 4 to 5% https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView
US treasuries give 4+ return
Short term CDs