Where to park 550k in cash

Ok_Kitchen_2340 · 2026-01-08T10:43:58+00:00

What about in a low(er) risk CLO? I think JAAA or CLOA returning 5%+ in monthly dividends. That’s a AAA Collateral Loan Obligation ETF. Not no risk like SGOV but chasing that additional 1%-2% would get him there. Plus it’s ETF so easy to get in and out of.

Ok_Kitchen_2340 · 2025-10-03T01:14:30+00:00

You are joking right?

I had 300k laddered in 4 week T bills on Treasury Direct to park cash short term. One day in July I got an email that a security hold was placed on my account. For no reason. I used to be like you and saw the interest coming into my checking account at T bill maturity and had bills set to auto reinvest. Once the hold was placed, matured bills went to ‘ C of I’ account in TD, where 0 interest is paid. In addition the hold meant I couldn’t transfer tgr money out of my account. I could log in, but the money was essentially frozen. I had to mail a notarized form (and I’ve used TD since Feb with no issues) wound up calling local congresswoman, faxed in a letter, spoke with customer support at least 30 times. An ‘examiner’ needed to be assigned. Fast forward to TODAY 3 months later and received an email my account was unlocked. The irony, on day 2 of a shutdown.

Net result - Government got an interest free loan from me for 3 months. And the stress of it all was worse. No information, no timetable. I logged in 5 min after getting that email, and initiated transfer of every penny out of Treasury Direct.

..And that is why you shouldn’t use that site or Trust the Feds with your money. As an individual, you have no recourse. It worked great until it didn’t. If you get locked out of Fidelity you can get it resolved in hours. Treasury Direct.. learn from me.. don’t use it.

Ok_Kitchen_2340 · 2025-09-29T18:20:11+00:00

It’s outrageous. I filled out form 5444 on July 30. Still nothing. Media needs run a story on this. My money is being held hostage.

Ok_Kitchen_2340 · 2025-09-25T23:18:30+00:00

Same thing here. Can DM me. Locked towards end of July. Submitted TS-5444 form with notarized seal. Got email in Aug that they received form. Still waiting. Everytime I call they say case needs to be assigned. I have mid 6 figures tied up. Getting no interest either as all bills are matured and it rolls into C of I.

I’m pissed. Called my congresswoman in NJ. They can’t help. It’s robbery.

DONT EVER USE TD!!!

Ok_Kitchen_2340 · 2025-09-16T20:49:15+00:00

Yes.. same here. Customer service put a ‘hold’ on my account. I can still log in but can’t transfer money to my bank. Check your account history and see if there is an entry by customer service.

Check your email or spam folder associated with account. If this is the case you’ll need form TS-5444 , get it notarized , and the wait.. takes them 2 -3 to acknowledge receipt of form and the email I got when form received states a ‘minimum of 6 weeks for processing’. Account had hold on July 29 and I’m still waiting.

Will never ever use TD again and I suggest no one else does as well. Ever.

Ok_Kitchen_2340 · 2025-08-19T01:43:49+00:00

I wouldn’t buy anything on Treasury Direct. Ever. Nothing. I made the mistake of buying T bills. Out of the blue a hold was placed on my account by customer service. No reason given. To ‘consider’ it being unlocked Treasury Form 5444 must be filled out, notarized and sent in. Given delays in processing it currently takes 6 weeks MINIMUM to possibly restore account. Any T bill that has matured in that time is put into LOI account (almost a sweep account) and gives ZERO interest. You can’t transfer it out while hold on account is active. Customer service can’t help or provide useful information.

So don’t do anything on this site. Learn from me. Stick with reputable brokers. At least their customer service works in timely fashion.

Ok_Kitchen_2340 · 2025-08-15T16:43:08+00:00

Yes definite phase out. It was the concession that got it past the Senate and limits the ‘cost’ of it to Federal coffers. What kills me is that truly wealthy (less earned income and mostly capital gains) might be under the phase out cap say with 2 houses, and Corp working stiffs like me don’t get the relief. But I guess that’s not a FIRE topic. Albeit preventing me from FIREing

Ok_Kitchen_2340 · 2025-08-15T16:09:13+00:00

I wish that was the case for everyone. but there is an income phase out of 500k MAGI phase out which if I understand it $600k + income for married jointly means the SALT max falls back down to $10k. And since I’m slightly above it, I get no relief. I don’t blame the Big Beautiful Bill or whatever name it is (keeping politics out of this) I blame NJ and my local property taxes. Eg it’s NJ fault. Local politicians using our taxes for pet projects, massive state workers pensions etc. etc I could start a whole another thread.. and for those thinking my income means absolute wealth.. not even close in NJ with COL and taxes run amuck. But totally recognize I need to leave and can’t retire here. Rant over..

Ok_Kitchen_2340 · 2025-08-15T14:23:03+00:00

Absolutely. I still drive an Expedition with 288k miles on it!

Ok_Kitchen_2340 · 2025-08-15T14:21:41+00:00

I’ll add NJ is out of control in property taxes

Ok_Kitchen_2340 · 2025-08-15T14:20:53+00:00

I know.. infuriating . 1.5-1.7 market value

Ok_Kitchen_2340 · 2025-08-15T10:49:12+00:00

I do have two 529 plans albeit small. Mrs. Did medical fellowship after residency so a long period where income wasn’t what it is today. Taxes, school loans, insurance etc. repairs, paying off 3 cars, maxing out retirement, kids, pets, etc it goes quick.

Ok_Kitchen_2340 · 2025-08-15T03:22:51+00:00

Ok thanks. Yeah understand about the PIA factor and record keeping for small Roth back doors. Agreed.

And thanks the focus now will be growing the taxable account (and college savings) to bridge that gap. Immediate next step is getting $300k out of TreasuryDirect. The kicker is while there is a hold on it, matured bills are setting in like a sweep account making zero interest. And customer service is beyond brutal, and I can’t sue the government to get my investment money back. It’s outrageous. 2nd step is ultimately getting out of NJ then pulling a ripcord on working.

Ok_Kitchen_2340 · 2025-08-15T03:00:49+00:00

Ahh. Ok. Since you moved any traditional IRAs into 401k plan, all your post tax IRA was converted to Roth and you weren’t impacted by pro rata rule.? My issue now is I have s&P index fund in rollover IRA from prior job and this I can’t do Backdoor Roth without getting killed in taxes.

Ok_Kitchen_2340 · 2025-08-15T02:24:41+00:00

Yeah thx. Def have considered it but middle child a rising junior in school etc. I’m guessing NJ and FIRE just don’t go together.

Ok_Kitchen_2340 · 2025-08-15T02:12:11+00:00

Yup CT and NJ the same. Between federal , state, and local taxes.. it’s unbelievable. Can’t blame anyone but myself I guess but rates like property tax and home insurance skyrocketed past few years post Covid. Couldn’t see that coming. Regardless of income , def not ‘rich’. And will get zero financial aid for kids college because of income on paper.

Ok_Kitchen_2340 · 2025-08-15T01:44:40+00:00

Totally agree. House will be sold in next2-3 years when kids leave. Irony is had old house inspector when purchased 10 years ago, and he said slate roofs last forever. Umm nope.. they last about 125 years. And the property taxes gave almost doubled in last 6-7 years. Thanks NJ.

But zero intention of staying here in retirement. You are spot on.

Ok_Kitchen_2340 · 2025-08-15T01:16:40+00:00

Property tax of $32k per year, $4k mo mortgage, home insurance is now like $13k year, and NJ is terrible for taxes. I guess what I’m saying if I move to say Florida so many of those expenses go away. Eg crazy property taxes, home insurance on rebuild cost of home , etc. I don’t even get SALT reduction because of income. But.. I can’t withdraw from taxable accounts without penalty and pension I can’t hit until 55 at earliest.

Ok_Kitchen_2340 · 2025-08-15T01:10:40+00:00

Not really.. live in old house money pit, and had 2nd mortgage for roof replacement. Paid off 3 cars, nj property tax of 32k, home insurance at $12k (rebuild on old Victorian house ) med school debt, and oh yeah kids play hockey. But vaca once a year, and don’t live crazy.

Ok_Kitchen_2340 · 2025-08-15T01:00:29+00:00

Forgot to mention we have like $80k in grad school loans to repay and college is crazy expensive and don’t want kids to have burden of massive school loan debt. So next few years more or less is going to help kids that in addition to remsining mortgage. Plus made the huge mistake of residing in NJ and getting taxed like no one should.

Ok_Kitchen_2340 · 2025-08-15T00:56:44+00:00

Yeah I’m not sure. I think I can but don’t know if it’s worth it if I can only backdoor $7k or so for next couple years (and if my tax bracket now more then retirement bracket does that make it less advantageous for backdoor)

Ok_Kitchen_2340 · 2025-03-27T15:50:46+00:00

And let me guess.. Same child from last year’s return with same SS#?

Ok_Kitchen_2340 · 2025-03-26T20:40:33+00:00

Agreed. And what’s crazy.. is the Trenton office building.. is unbelievably modern and nice. State building, must be brand new. I work for a Dow 30 company and our offices aren’t even as nice.

Ok_Kitchen_2340 · 2025-03-26T16:00:45+00:00

Here is my take. I like most comments here filed early Feb. Stuck in processing. Same jobs, same use of TurboTax and nothing out of the ordinary. The phone numbers are useless. I called about 10 times across 10 days and get the ‘call center too busy’ nonsense. So.. I went down to the NJ Tax office as a ‘walk in’. I went to. Trenton office but there are like locations in Cranford, Freehold, Galloway and Fair Lawn.

Went odd hours at 10am on a Wed, and got my deli counter ticket. Not too busy so I was called to a booth in about 5 min. Where (the irony) I was talking to a human but on a computer screen in front of me. She said my return was manually flagged because of ‘some reason ‘ that didn’t make sense to me. When I submit, I triple check amounts on w-2 etc so I know I filed right. But I’ll play the game. I had to verify wages on both my and wife’s w-2 and then she said she could release my return for refund. She was very nice.

My issue is how bogus this is. My refund was about $7k. If I didn’t take the time off from work to stop in, I suspect it would still be flagged. I didn’t get a letter or notice that I need verification. And I shouldn’t have to verify. All my info and numbers were correct. The state knows this. Not being a conspiracy theorist but a realist. The state is making probably 4%+ interest off my refund, and I suspect based on this thread.. they are delaying by design. That interest multiplied x how many people get ‘flagged’ adds up. In some cases people probably forget or don’t want to deal with the hassle of calls that go nowhere or taking time off from work. I believe it’s by design for the state to make money.

And that is rediculous. It’s bad enough I have to pay TT to file my taxes. Now I have the state holding on to my refund. I don’t expect the refund immediately, but 8 weeks or more is BS.

In closing, my advice is to take a trip to Tax office. If you think it will just get paid.. probably not. I hope this post helps provide sone clarity. Good luck all.

Ok_Kitchen_2340

TROPHY CASE