After You Sell Your House…
“Put your signature here at the bottom of the contract. Now you have completed the final transactions in selling your house.” Through the excitement of coming into large sums of money upon the sale of your home all you can do is to accept congratulations from your lawyer. But be careful to avoid the mistakes when passing the title of your property.
When the buyer pays you for your property, you will either get payments at varied times, or one lump of cash. Either way, don’t let that money lay idle in the bank. In all too many cases, the money sits in the bank until an investment manager notices your account with an enormous deposit and tries to convince you to buy the bank investment of the day.
Ask yourself if your are losing money if you let the money sit idly in your account. Consider the case of someone selling his house for $250,000, the buyer paid the money and then the seller gets wrapped up in house hunting, buying new furniture, and making all sorts of arrangements in the flurry of obtaining new property. Off course this takes time, weeks, even months. Even though he still has his $250K, having not spent it, he didn’t make money either.
There is an alternative and that is available to everyone and that is to invest in a Market Money Funds. Though not guaranteed, Money Market Funds are considered amongst the most conservative investments around today. When someone has a sum for a short time, but still wants to earn something on his assets, one should buy in the money market. Had that chap in the above example used a 5% money market he could of earned up to $1000 per month.
Money Market Funds often offer checking, debit cards and other services. Make sure that free cash is put into the fund on a daily or weekly basis, thus insuring that your money is working for them every day. A Money Market Fund offers you current income, stability and one of the most important advantages of any mutual fund – professional management of your money.
For information on Money Market Funding contact the U.S. Securities and Exchange Commission http/www.sec.gov/answers/mfmmkt.htm’ . Their site details the term Money Market Fund’ “A Money Market Fund is a type of mutual funds that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other mutual funds and pay dividends that generally reflect short-term rates. Money Market Funds typically invest in governmental securities, certificates of deposits, commercial paper of companies, and other highly liquid and low-risk securities.
Another site that will give you information on Money Market Funds mutualfunds.about.com’. They state, “Money Market Funds are clearly a smart place to hold your money for investment and earnings. If you are between investments, saving for a house, saving for a vehicle purchase, or just looking for a safe place to put your money, I urge you to put the money in a Money Market Fund. There is no reason to hold large amounts of money lying in your bank.
Remember that this real estate transaction is part of your total financial plan. Be sure to consult a competent financial adviser or attorney who specializes in securities law to determine the best way to benefit for investment in Money Market Funds.