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How would you invest high school tuition money?... (or any short term reason)
Posted on 9/21/17 at 8:23 am
Posted on 9/21/17 at 8:23 am
Funds are set aside to cover hs tuition for two kids, one has 3 years left, the other will be 5 years. (80k basically)
Will need to withdraw 20k for first 3 years, then 10k for 4th year and final 10k for 5th year.
CD's are terrible % but don't want much risk and was considering this option.
What is a low to low-moderate risk possibility considering the withdrawal timeframes?
tia
Will need to withdraw 20k for first 3 years, then 10k for 4th year and final 10k for 5th year.
CD's are terrible % but don't want much risk and was considering this option.
What is a low to low-moderate risk possibility considering the withdrawal timeframes?
tia
8
Posted on 9/21/17 at 8:30 am to The Mick
quote:
moderate risk
Seems like too much risk since you need the money now.
High interest rate savings account are worse than CDs but are more flexible. Otherwise you need to ladder CDs
Posted on 9/21/17 at 8:38 am to UltimaParadox
quote:This is what I was planning.
ladder CDs
Posted on 9/21/17 at 9:32 am to The Mick
Could ladder treasuries, use TreasuryDirect. Could choose the maturity date to coincide with when funds needed.
Posted on 9/21/17 at 10:20 am to The Mick
You could use a short term bond fund or conservative allocation etf with tight stop loss.
Posted on 9/21/17 at 10:42 am to The Mick
CDs man. You don't want to lose your money, you just want to help it adjust for inflation
Posted on 9/21/17 at 11:21 am to The Mick
Bitcoins?
Posted on 9/21/17 at 1:44 pm to The Mick
Personally, I wouldn't be scared and just invest the damn money normally. Set some stop losses, and be done with it. People worry way too much about a market drop, and when it happens they freak out,sell off, and screw themselves.
There's no good method for short term investing without risk.
$80k invested for 5 years could leave you with $40-50k left if you invest it normally in 70% stocks or so. So by not investing it in equities, you are risking that extra income also to an extent. I know I'm in the minority here, I'm just not a big fan about being scared of the equities market dropping off. I'm a fan of setting stop losses and living life. More those stops up as you get gains, and yes I realize there is still a risk there or a huge drop overnight but that risk is very low.
I mean absolutely worst case scenario, what happens? Your kid goes to public school? It's not like it's their cancer healthcare money or something and they die.
There's no good method for short term investing without risk.
$80k invested for 5 years could leave you with $40-50k left if you invest it normally in 70% stocks or so. So by not investing it in equities, you are risking that extra income also to an extent. I know I'm in the minority here, I'm just not a big fan about being scared of the equities market dropping off. I'm a fan of setting stop losses and living life. More those stops up as you get gains, and yes I realize there is still a risk there or a huge drop overnight but that risk is very low.
I mean absolutely worst case scenario, what happens? Your kid goes to public school? It's not like it's their cancer healthcare money or something and they die.
This post was edited on 9/21/17 at 1:46 pm
Posted on 9/21/17 at 3:17 pm to baldona
quote:So when you're at or nearing retirement age, you suggest being as aggressive as you were as a young man?
I wouldn't be scared and just invest the damn money normally. Set some stop losses, and be done with it. People worry way too much about a market drop, and when it happens they freak out,sell off, and screw themselves.
quote:Retarded answer.
I mean absolutely worst case scenario, what happens? Your kid goes to public school? It's not like it's their cancer healthcare money or something and they die
Posted on 9/21/17 at 8:09 pm to The Mick
I'd send my kids to public school and buy myself a boat.
Posted on 9/22/17 at 7:03 am to The Mick
You have enough time there that the longer term CDs might pay a bit, but my standard thought on short term parking of cash is Capital One 360 money market account. Pays 1.1% right now and is FDIC insured.
Posted on 9/22/17 at 12:28 pm to The Mick
quote:
So when you're at or nearing retirement age, you suggest being as aggressive as you were as a young man?
Yes actually. I'm planning on living to 90, you think I should cut back at 60? That's 30 freaking years boss, are you really going to be that scared for that long? That's not how I live. Keep some cash reserves to survive without touching your equities in retirement for 1 year, and let the rest ride it out good or bad.
My answer is not unique, plenty of people recommend the same. The ones that don't, are just those that make their money catering to people that worry too much.
Posted on 9/22/17 at 12:33 pm to The Mick
quote:
How would you invest high school tuition money?... (or any short term reason)
invest it in myself....send the kids to public school and make a quick $80k for me and the wife...
This post was edited on 9/22/17 at 12:34 pm
Posted on 9/22/17 at 12:33 pm to baldona
quote:
yes I realize there is still a risk there or a huge drop overnight but that risk is very low.
So you agree that stop losses do nothing in a major market correction. This is not his retirement this is money he needs today. Seems like unnecessary risk, when he already has the funds to pay for it.
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