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Just sold our house and waiting for the housing market to cool down. In the mean time I was wondering where I should invest $120,000 in the mean time but would like to have the money after 1 or 1 /12 years? Any suggestions? Thanks
 

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Take 119,000 and put it in a high rate savings account at 1% or so...

Use the remaining 1000 and buy lottery tickets...just kidding...
 

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Just sold our house and waiting for the housing market to cool down. In the mean time I was wondering where I should invest $120,000 in the mean time but would like to have the money after 1 or 1 /12 years? Any suggestions? Thanks
Agree with the suggestion of ultra-safe GICs or savings accounts. Make sure that you don't go over the 100,000 CDIC limit.
 

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I'm a bit surprised that the OP asked this question. If he has to have access to the money in 1-2 years then the choice of investment is obvious: low yield but high margin of safety. If the OP wanted to get fancy-shmancy, he could buy a gov't of Canada T bill. However, he can get a very similar rate with a high-interest savings account from Ally - see www.ally.ca/en/index.html

Ally is CDIC insured, which means that each Canadian account is covered for up to $100,000. The OP said "our house" so I presume that more than 1 person owns the $120,000. Therefore, the $100,000 limit should not be a problem.

Please note that you will pay tax on the interest, even if the original home was a principal residence (assuming that the money is held outside a registered account). For tax purposes, it may be advantageous to have the money held in 2 different names, so the tax on the interest is split as well.
 

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And to further the previous point, if you haven't maxed (both of you) your TFSA's, you could hold 20K of the $ there too, for some tax free gains.
 
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