Short term investment ideas
Short term investment ideas
I request your advice on specific investments of ~150k for around 6 months to 1 year. I plan to start looking for houses in December and probably use that for down payment once I find a suitable house which I expect will take time. (Appreciate if you may please also share your suggestions on which bank/financial institutions may offer the best rates for those investments. I am getting lost in googling.)
Thank you so much for your suggestions in advance.
Thank you so much for your suggestions in advance.
Last edited by johnkgan on Sun May 28, 2023 12:55 pm, edited 2 times in total.
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Re: Short term investment ideas
Money market or high yield savings
Re: Short term investment ideas
Thank you so much! By any chance, would you have recommendations on the banks that would offer the best rates? I live in California.
- ruralavalon
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Re: Short term investment ideas
Federally insured savings accounts, federally insured short-term CDs, or a good money market fund. You can get 5% yields.johnkgan wrote: ↑Sun May 28, 2023 12:44 pm I request your advice on specific investments of ~150k for around 6 months to 1 year. I plan to start looking for houses in December and probably use that for down payment once I find a suitable house which I expect will take time. (Appreciate if you may please also share your suggestions on which bank/financial institutions may offer the best rates for those investments. I am getting lost in googling.)
Thank you so much for your suggestions in advance.
For best rates see:
https://www.bankrate.com/
https://www.doctorofcredit.com/
Vanguard Money Market Funds
"Everything should be as simple as it is, but not simpler." - Albert Einstein |
Wiki article link: Bogleheads® investment philosophy
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Re: Short term investment ideas
Re: Short term investment ideas
2nd hand treasuries from Vanguard or Fidelity.
Re: Short term investment ideas
Thanks again! Those suggestions were very helpful.
Appreciate your confirmation if you meant VUSXX or VMFXX or if there is a preference between the two.
I was also wondering is there is any con in investing in those MMFs vs CD.. (I understand the principal and rate gets locked in CD, but is there any chance the interest which is ~5% for the Vanguard funds could go down? Is that why people would still invest in CDs?). Thank you.
Appreciate your confirmation if you meant VUSXX or VMFXX or if there is a preference between the two.
I was also wondering is there is any con in investing in those MMFs vs CD.. (I understand the principal and rate gets locked in CD, but is there any chance the interest which is ~5% for the Vanguard funds could go down? Is that why people would still invest in CDs?). Thank you.
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Re: Short term investment ideas
T-bills. No state tax. 6-months yielding 5.3%+
You can get them at Treasury Direct or Fidelity (or any other brokerage; I like Fidelity).
You can get them at Treasury Direct or Fidelity (or any other brokerage; I like Fidelity).
Last edited by RyeBourbon on Mon May 29, 2023 12:51 pm, edited 1 time in total.
Retired June 2023. AA = 55/35/10
Re: Short term investment ideas
I've been doing this with auto-rolled T-Bills at TreasuryDirect. Similar amount and timeframe. For us, it's for some home improvement projects we want to start after I retire shortly.johnkgan wrote: ↑Sun May 28, 2023 12:44 pm I request your advice on specific investments of ~150k for around 6 months to 1 year. I plan to start looking for houses in December and probably use that for down payment once I find a suitable house which I expect will take time. (Appreciate if you may please also share your suggestions on which bank/financial institutions may offer the best rates for those investments. I am getting lost in googling.)
Thank you so much for your suggestions in advance.
Re: Short term investment ideas
Thank you! I understand there are multiple options from above: TBills, CDs, Vanguard MMF. Appreciate your advice on which one would be most beneficial. Thanks again!
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Re: Short term investment ideas
Vanguard Federal Money Market Fund is paying around 5% and provides you immediate liquidity if you find a house. That seems like a good bet for you.
The fund is not FDIC insured but the underlying investments are quite safe.
The fund is not FDIC insured but the underlying investments are quite safe.
Re: Short term investment ideas
Thanks a lot again!
Would you mind confirming if you meant VMFXX (Vanguard Federal Money Market Fund - 5.04%) or VUSXX (Vanguard Treasury Money Market Fund - 5.07%) or some other fund?
I am looking for the best returns (If returns are the same, then taking taxes also into account if that helps - We live in California)
Would you mind confirming if you meant VMFXX (Vanguard Federal Money Market Fund - 5.04%) or VUSXX (Vanguard Treasury Money Market Fund - 5.07%) or some other fund?
I am looking for the best returns (If returns are the same, then taking taxes also into account if that helps - We live in California)
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Re: Short term investment ideas
I use the Federal Money Market Fund. But at 0.003% difference it's of no consequence. Both are subject to federal tax but exempt from CA tax.johnkgan wrote: ↑Sat Jun 03, 2023 5:08 pm Would you mind confirming if you meant VMFXX (Vanguard Federal Money Market Fund - 5.04%) or VUSXX (Vanguard Treasury Money Market Fund - 5.07%) or some other fund?
I am looking for the best returns (If returns are the same, then taking taxes also into account if that helps - We live in California)