Best investment of profit made from home sale?

Question

We finally sold our townhouse and want to preserve the profit for downpayment on a new house. We'll be purchasing in about a year maybe two and want to get the best return with the least amount of risk. Can always go CD, but are there any other options? I'm willing to assume some risk if the return is there.

Answer 1

Put it in a CD or money market account. You only get about 3% annually. But, it's a pretty safe investment. And, you don't want to risk losing any of your money if you're going to want to reinvest in real estate.

I had my 401(k) in three different medium-to-high-risk stock accounts up until the beginning of last year. As soon as the stock market started going flaky, I immediately moved it all to a money market fund. I only get about 4% return a year. But, those stock funds have lost an average of 12% year-to-year.

Be smart. In this screwy economy, go with a low-risk, low-yield investment. Maybe foregin currency (like Euros) or just a money market account. At least you'll have all your money plus a little more in a year or two, instead of watching it piddle away in the stock or commodities markets (even oil isn't a safe bet - some economists predict that oil is the next investment bubble to burst)

Answer 2

In my humble opinion ...... inverse ETF's.

Answer 3

I'm certainly no financial adviser, but I would be looking at only safe, short term commitments.  You want that money for your down payment and you want it to be there to use when you need it.  1 or 2 years is short term, so I say play it safe.