I've Got $35K Burning a Hole in My Pocket. Where Should I Put It?
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I just found out one of my real estate partnerships is wrapping up soon, and I'm looking at a payout of about $35,000. Woohoo!
I'll be honest, part of me wants to go nuts. Maybe buy a new Harley Davidson Road Glide with Vivid Black trim and a Stage IV Screamin' Eagle performance kit upgrade (not like I've been shopping or anything).
But I know better. I'm a personal finance writer, after all. Reinvesting profits and turning money into more money is second nature at this point.
Here's how I'm thinking about putting this $35,000 to work.
Short-term storage in an HYSA
Step one for this money is to transfer it immediately into a high-yield savings account (HYSA) while I decide my next move. There it will earn the most interest (my current account pays 4.00% APY).
That may not sound exciting, but here's the math:
- $35,000 at 4.00% earns about $1,400/year,
- Or roughly $3.83 per day for just sitting still.
Even for just a temporary holding account for a couple months, earning a few hundred in interest is way better than letting that cash sit idle in my Chase checking account earning 0.01% (basically pennies).
If you're sitting on a cash pile and earning nothing in interest, open a new HYSA as soon as possible. One of my top picks right now is the LendingClub LevelUp Savings account offering 4.20% APY with $250+ in monthly deposits. Read our full review here to see if it's a good fit for you.
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- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The LendingClub LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
Long-term investing for growth
Even though the stock market's sitting at all-time highs right now, I still believe it's one of my strongest long-term investment options.
If I invested all $35,000 into an index fund today and left it alone, here's what it could grow into assuming an 8% average annual return:
| Years Invested | Ending Balance |
|---|---|
| 10 | $75,562 |
| 20 | $163,133 |
| 30 | $352,193 |
That's 10X growth over 30 years.
Total stock market index funds have historically averaged 10% annual growth, but I typically like to forecast a little less than this to stay conservative.
One thing I love about index funds is there's no ongoing management or work involved. I only need to invest once and then stay patient. There will of course be big swings in the market, but as long as I stay invested my money should grow.
Considering a short-term CD
My wife and I have been having more serious talks lately about living abroad for a couple of years while our kids are still young. If that happens, we'll need a decent chunk of cash ready to fund the move.
That's why I'm also considering putting a portion of cash into a short- to mid-term CD. This will earn us more than a saving account but won't tie up the money for too long.
Let's look at an example using a 15-month CD paying 4.25% APY. Here's what that could look like if I locked in $20,000:
- Guaranteed return: $20,000 at 4.25% earns about $1,068 in interest over 15 months
- No market risk: Unlike stocks, my principal is protected and FDIC insured
- Future flexibility: Money becomes available in just over a year -- perfect if we decide to make the big move
It's not the most exciting place to stash cash, but it checks all the boxes for short-term peace of mind. Read our full Synchrony Online CD review to find top-tier APYs on multiple terms with no minimum deposit requirement.
Synchrony Online CD
On Synchrony Bank's Secure Website.
The boring answer is usually the right one
I've made enough money mistakes in the past to know that boring works best.
I'm not chasing crypto or trying to hit it big with penny stocks. And as much as I'd love to, I'm definitely not buying a brand-new motorbike that drops 20% in value the second I ride it off the lot.
I don't have all the answers, but I do know this: Every dollar I protect and grow today gives my family more freedom tomorrow.
That's why I'm being thoughtful with this money -- and trusting the boring stuff to do its job.
Compare today's top high-yield savings accounts to earn more on your short-term cash, safely and effortlessly.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.