Hi! New Fool here. About to sell a second home and thinking I’d like to put the proceeds in a Money Market Fund. I can’t find a place on Motley Fool where I can get their perspective on which one to get. Or at least some things I need to understand as I look for one.
Anyone have any advice? Thanks!
Hi @GebOshanti,
Welcome to the Fool.
Our broker accounts are at Schwab and I use SWVXX for money market there. It should be able to be purchased through any US broker.
Does that help you?
Gene
All holdings and some statistics on my Fool profile page
https://discussion.fool.com/u/gdett2/activity (Click Expand)
Hi, Gene. Thanks for getting back with me! And yes, it does help. I’m also with Schwab.
Q1. I suspect there’s some kind of advantage if I buy that Schwab product you mention vs. say, Vanguard (VMFXX) through Schwab?
Q2. Morningstar offers a free 7-day trial that can let me compare those funds. Seems like I could hop in there through the trial and do some comparison shopping. Does that make sense?
The experts money markets are most likely to be found on the Bond and Fixed Income discussion board.
https://discussion.fool.com/t/i-miss-gilda-im-surprised-heaven-has-not-sent-her-back-to-us/105563
Second choice is the Retirement Investing discussion board.
Welcome!
I hope that some/all of the money that you are putting into the MMF funds are going to be to pay the taxes you will owe on the sale of a 2nd home. Since the home is a 2nd home, therefore, not your primary residence, it appears that you would have a difficult time meeting the residency requirement of living in the house for 2 out of the last 5 years in order to claim a $250k/$500k (depending on filing status) capital gains exemption. I will point out that even if you manage to claim the exemption, if you have ever rented out the house, you will have to pay taxes on the depreciation you were allowed to take, whether or not you actually claimed it. So it is likely that you will owe some additional taxes on this sale.
The advice you received on the Bonds & Fixed Income board is reasonable, especially about understanding if T-bills would be more advantageous that an MMF.
AJ
I’ve already figured the cap gains tax and set some money aside for it. I suspect I’ll be able to include the roof we put on a couple of years ago as part of the basis. But need to confirm that with my tax dude.
Thanks, AJ.
There’s an IRS publication on selling your home. It includes roof repair in one of their examples. No problem at all with that one.
In the good old days you had to keep records to adjust your basis when you sold. Not many bother any more. Almost any improvement can be included if you have a receipt. Fence, patio, deck even hanging pictures etc can count as long as its permanent and doesn’t replace something already there.