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Why not invest in <5 year US Treasuries? Approximately same security, higher yield than savings accounts. (Asuming you're not going through the gymnastics / ri
by ethbro 8y ago
Why not invest in <5 year US Treasuries?
Approximately same security, higher yield than savings accounts. (Asuming you're not going through the gymnastics / risk to balance across reward savings accounts)
- lotsofpulp 8y agoYou can, just more work. If you're saving for a smaller downpayment, it might not be worth the effort for 50 basis points.
- charlesdm 8y agoNothing you can't do in an afternoon of work if you're holding them until maturity.
- meritt 8y agoMore work? Simply park it in one of (yields as of Dec '18): * VMRXX - Vanguard Prime Money Market Fund, ~2.4% yield, fully taxable * VUSXX - Vanguard Treasury Money Market Fund, ~2.2% yield, no state tax * VMSXX - Vanguard Municipal Money Market Fund, ~1.6% yield, no federal tax * VCTXX - Vanguard California Municipal Money Market Fund, ~1.5% yield, no federal or California tax
- lotsofpulp 8y agoI know, but I like to keep it simple and stupid for most people who aren't interested in the field. Marcus and others offer 2.25%. On a $100k downpayment, we're only talking about hundreds of dollars.
- ethbro 8y agoAt Fidelity at least, you can auto-roll direct buys from the Treasury. So it's pretty set and forget.