Do any of you invest the money you are supposed to pay your taxes with on a cd or money market?
Yes, kind of. I have a couple of ‘specific purpose’ accounts (tax, new vehicle etc) that pay reasonable interest so put the money in those until required. Might as well make use of it!
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I don’t think I understand the question? If I owe taxes, I pay taxes? I invest money twice a month. Is that what you mean?
So lets say you pay your taxes quarterly. Do you invest the money that you save for your taxes, so that money can earn a little bit, or do you just sit on it and pay when its due
Oh. I just pay the taxes. I set aside money for investments.
how much can you really earn in a low yield cd or savings account over the course of a quarter? and don’t you have to pay taxes on the earnings?
seems like a hassle for almost zero payoff. maybe i’m missing something though, so please enlighten me if so.
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I don’t do those types of investments. I invest in primarily ETF’s and other funds as directed by my financial advisor. I have money automatically deducted from my bank twice a month and those funds get distributed into the different investment accounts I have - Retirement, savings/emergency money, kids college, etc. I have a savings account but I don’t really use it since I don’t earn any interest on it.
My financial firm moves the money around as needed to try to get the best performance out of the portfolio. I am also going to be investing in some rental property this year out of state somewhere. However, those properties will go under a seperate LLC and I am going to run that as another business as well.
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I think we are talking about two different things. I was responding to Tim, who asked about investing quarterly tax money between payments.
Gotcha.
It didnt necessarily have to be a cd or money market, I was just using them as examples. I guess I was just hoping for a way to make my money work for me as I accumulated it
There are a couple of online savings accounts that offer a fairly decent APY - better than a lot of CD’s or money market accounts. Check out the high-yield accounts from Discover and Synchrony.
(I don’t have any affiliation with those companies, nor have I ever had an account with them. Please don’t get mad at me if it doesn’t work out 
)
And if you really wanted to think outside the box, there are several prepaid debit cards that give upwards of a 6% APY. There’s typically a $5,000 balance limit, and you’ve gotta jump through some hoops to get those rates and avoid fees, but it might be worth it…
if you can invest in rental properties is best in my opinion . what’s better the being paid back every month ?!
