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Ok, I'll bite - what should they be investing in if their investment horizon is 12 months? The stock market is in the middle of a correction, and there's no tel
by sangnoir 5y ago
Ok, I'll bite - what should they be investing in if their investment horizon is 12 months? The stock market is in the middle of a correction, and there's no telling when that will end.
- ellisv 5y ago> This guy has less than 20 grand to his name and he's investing in I-Bonds? That's the real tragedy. That was the shocking bit for me too, although I suspect (hope?) the author has more money outside that bank account. I wouldn't recommend anyone with only $20k invest it or at least not entirely. Sure they have (probably) the best risk-adjusted return right now but Savings I Bonds aren't a great emergency fund because of 12 month lockup and 3 month interest penalty for liquidation in the first 5 years.
- sangnoir 5y agoAuthor intended (still intends) to invest only half of that though. Putting $10k in bonds with yields greater than inflation strikes me as a good plan. It's certainly better than keeping the whole amount in sub-inflation-interest bank account.