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On the same topic, I've actually set aside a down payment for a house, but I probably won't be buying for another year or so. I'm wondering what is a good way t
by esaym 10y ago
On the same topic, I've actually set aside a down payment for a house, but I probably won't be buying for another year or so. I'm wondering what is a good way to invest this money since leaving it in the bank at less than 1% interest really isn't doing much.
- lbotos 10y agoI feel like some sort of CD or Ladder CD is your best bet, you don't really wanna risk those funds.
- jessedhillon 10y agoIf that's close to 100% of your worth, I'd guess you want to put it somewhere conservative.
- davidw 10y agoHow comfortable are you seeing the value of your investment decline? Edit: WTF, downvoter: that's entirely what his question comes down to. If he's cool with it, then maybe something riskier might be warranted. If not, then 'sitting in the bank' might be ok.
- nekopa 10y agoI didn't down vote you, but your original comment didn't add much to the discussion, and could be viewed as snark. If your edit, minus the wtf, had been in the original comment, then probably no one would have downvoted.
- davidw 10y agoIt wasn't intended to be snarky, but brief. If you can't afford to lose money on an investment, seek out something stabler.
- harryh 10y agoIf this is money that you don't want to risk at all (because if you lose some you won't be able to buy the house you want) it's gonna be tough to earn all that much interest in just a year. As lbotos says, you might do a bit better with a CD than your bank account but not by all that much. If you can stomach a bit of risk you might consider buying something like Vanguard's Total Bond Market ETF. https://www.google.com/finance?q=BND https://www.google.com/finance?q=BND
- 15155 10y agoAlly has 1% APR savings accounts, American Express has 0.90% APR savings accounts. This or relevant CDs would be your best bet. Move your emergency fund there, too, if you like. These are probably the best "riskless" places to keep the funds. If you can stomach more risk, you can certainly do better.
- pthreads 10y agoMy recommendation is to put it in something like the Vanguard REIT ETF. So if real estate is up by the time you are ready to buy your house your investment will likely be up proportionally. In the event you get a negative return it is very likely your down payment might be lower as well. Alternatively if you want to lower your risk (which also lowers your expected reward) you may invest half in REIT ETFs and the other half in an uncorrelated sector. Think of what sector goes up when real estate goes down. DISCLAIMERS of course: This is not professional advice. Invest at your own risk.
- harryh 10y agoThis is an interesting idea! It might even be better to think about an investment vehicle more closely correlated with housing costs. The main Vanguard REIT is mostly commercial property I believe which could be somewhat uncorrelated with residential property.