Finally, Finally My Money is Free!

Just over a year ago, I sold a house. I took the proceeds from that and kept it in my checking account.

My bank was quick to pounce. “Don’t you want to get a rate of return from that?”

Well, that was a rather obvious question, but what could I do? They “helpfully” offered some savings products they had, which gave some small rate of return.

The first GIC was a sad “1.65%”. But again, 1.65% was more than 0%, so I said yes. 30 days invested at that rate. That went up to 1.85% over time and then 2.1%. Getting a bit better.

Then, last July, the bank hooked me with a 4.3% rate for 1-year. A few times over the past 11 months, I’ve regretted locking in that money for a whole year. But, even now, 4.3% is not a terrible rate of return.

That year is almost up. And I’ve confirmed with the bank that I will cash out that investment. That means I will need to find a place to invest it, along with the cash sitting in my checking accounts.

Current Portfolio Breakdown

My current investment breakdown is as follows:

• 39.5% invested in money market/short-term bonds paying 4-5%
• 45.5% invested in the broad market: S&P 500, banks, utilities, and such
• 6% in high-yield bond funds
• 8% in individual stocks

This doesn’t include the 37% I have just in cash – including this expiring GIC.

Where It Goes

I must resist the urge to invest it ALL in T-bills and money market funds. I should try a 50-50 mix. Putting half of the resting cash in the S&P 500/world stocks and the other half in safe money market funds.

Keep the current mix while reducing the size of the “cash” bucket now that I’m clear of some obligations I thought I might have but didn’t.