Farnoosh Torabi: Extra money? Keep it in the bank!

Sep. 5, 2012 at 12:17 PM ET

Today Money financial expert Farnoosh Torabi joined us for a live Web chat Wednesday to answer your questions.

Here’s one of her answers to questions from the live chat. (See below for the full Q&A and video of Farnoosh’s TV appearance this morning.)

Mat asked:

“I have between $50-$80K in cash and have no idea what to do with it. I'm in early 30s, own a home with wife and baby and need some advice on what to do with it.”

Farnoosh replied:

“Keep it in the bank! I understand you want to 'put it to work' but with a baby you will want the security of knowing that money is there and liquid. Of course, if that's more than you need in a rainy day account (and I suggest a 9-month rainy day reserve) … consider taking some and placing in a college savings account like a 529, or in long-term CDs where you can earn more than the standard .01% in a savings account.”

Here’s the full chat archive and Farnoosh’s TV appearance:

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