Submitted by composites123 t3_z8zx07 in personalfinance

I requested a refund on my federal student loan payments during COVID forbearance and received back $8500 (the full amount). I have brokerage accounts for a ROTH IRA and for other investments, I also own a 4 bed, 3 bath home that I rent out (this covers all monthly / annual expenses for the home), and have a managed investment account with Charles Schwab, which they were able to increase in value by $10,000 over the last month.

I do not have any debt other than my student loans, which if all goes well it will be paid off by Biden's administration. I am looking to buy another property next May to move into and I am looking to buy a engagement ring. What should I do with this money, and what are some recommendations to safely grow it? I should also mention that I have a capital one savings account that has a 3% APY and use that for most of my emergency savings fund. I have 6 months worth of emergency funds and am comfortable with the amount in there. Is it worth sending the money there for the short term or invest in something like SPY or VOO? All advice is appreciated! :)

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An-Okay-Alternative t1_iye9z3k wrote

I would hold onto it in a high yield savings account for now given that student loan forgiveness might not happen.

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DareToSee t1_iye6zby wrote

What is your time horizon?

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IceCreamforLunch t1_iye7bzw wrote

If you need it to buy another home in six months then put it in a high yield savings account instead of investing it.

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Also, ditch the managed investment account. Study after study shows that they don't outperform the broader markets over the long term so the fees you pay are wasted money.

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Mickothy t1_iyebb34 wrote

Thank you for reminding me that I also requested to get my payments refunded. Hit my bank account yesterday!

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[deleted] t1_iye7ehr wrote

[removed]

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antoniosrevenge t1_iyfasnw wrote

Your comment has been removed because we don't allow political discussions, political baiting, or soapboxing (rule 6). This includes questions or discussions about proposed legislation or government policy changes.

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sciguyCO t1_iyec5jq wrote

Personally, I'd hang onto it in something safe enough for a timeline of a year or two (so HYSA or maybe I-bonds). The student loan forgiveness has gotten a few setbacks, and things are dragging out. There's even a chance that it might get killed altogether. My crystal ball is on the fritz, so I couldn't say how high that chance is, but that possibility is worth keeping in mind. Keeping this earmarked to get put back towards your loan could be your safest bet.

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