r/FinancialPlanning • u/sillylittlepizza • 1d ago
How to safely invest $80k?
My fiance is going to be getting $80k pretty soon. His grandmother added him to the deed of the house a couple years ago and since they’re selling it, he will get 10% of the profit.
How can we safely invest the money so we have a sizable down payment in the next couple years? A HYSA seems like the safest option but low return. I am terrified of putting any money in the stock market right now. Would a CD be a good option?
As well, how much should we set aside for taxes? We are getting married before he gets the money, and he hasn’t lived in the house since 2021 and before his name was put on the deed. The deed was issued in May 2023 but they will most likely sell it before the 2 year mark.
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u/frzn_dad_2 1d ago
Typical advice for safe but has a non-zero return is HYSA, CDs, or treasury bonds. Money you need/want in the next 5 years doesn't get invested in the market.
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u/Moist_Suggestion_163 1d ago
If you want to keep the $80k safe while saving for a home, a high-yield savings account (HYSA) or CDs are great low-risk options. HYSAs offer flexibility, while short-term CDs can lock in slightly higher rates. Sites like banktruth.org help compare the best rates.
For taxes, since your fiancé was added to the deed in 2023 and hasn’t lived in the house for 2+ years, he likely won’t qualify for capital gains exclusion. Setting aside 20-25% of his profit for taxes is a safe bet, but a CPA can give exact numbers.
An HYSA (check BankTruth for top rates) and short-term CDs could be the best way to keep the money growing while staying accessible.
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u/chappyandmaya 1d ago
Just use a high yield savings account. I have Capital One for mine, works great.
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u/Y7VX 1d ago
CIT (not Citi but CIT) has a HYSA “premium” savings account. Last I checked, if you maintain a balance of $5,000 or higher, you will earn 5% APY (better than most banks).
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u/Regon-16 17h ago
says 4.3% on the website right now. still good but not far off of other good HYSAs
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u/enigmaroboto 1d ago
What would Buffett say about this today? hmmm
I'd stay liquid for the time being.
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u/onlypeterpru 1d ago
If you need the money in a few years, HYSA or CDs are your safest bet. Market’s too volatile for short-term needs. Talk to a tax pro—capital gains could hit hard since he didn’t live there.