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re: Looking for suggestions- $100k for 18 months investment
Posted on 2/18/22 at 1:00 pm to ehidal1
Posted on 2/18/22 at 1:00 pm to ehidal1
quote:
I will have about $100k to invest for about 18 months. Looking for something with a relatively low risk and the best return possible (at this risk level). Thanks in advance
At this point, wait a month until after the fed raises and ladder out CDs
$25K in each 3/6/9/12 months, roll the 3 month CD into 12 or 15 months when it matures and so forth.
You won't get rich but you are taking zero risk and will get a return above your cash.
There are lots of other strategies but this assumes that you want to take ZERO nominal principal risk
2
Posted on 2/18/22 at 1:19 pm to whodatigahbait
quote:
You won't get rich but you are taking zero risk and will get a return above your cash.
Wait till the Fed raises a lousy 25 bips? That's gonna do nothing for CD's at 12 months or less except lock up your money in 3-month increments with a 1099-int waiting on you at the EOY for your small return.
Posted on 2/18/22 at 1:35 pm to ehidal1
If you want 0 risk with liquidity, go for a high-yield savings account. We parked our emergency fund in one through Marcus. .50% which is obviously small, but much better than the bank. You'd get about $800 in interest over the 18 months.
LINK
LINK
This post was edited on 2/18/22 at 1:37 pm
Posted on 2/18/22 at 1:53 pm to Bearcat90
quote:
Honestly, if I had 100k on hand I'd find a few houses to flip. I don't see that bubble bursting anytime
I'm not saying it won't work out but there is certainly risk involved here
Posted on 2/18/22 at 3:05 pm to ehidal1
i bonds at 7.2%?
Posted on 2/18/22 at 4:51 pm to ehidal1
Put it in a money market at your local bank.
Or a coffee can and bury it in your back yard.
Or a coffee can and bury it in your back yard.
Posted on 2/18/22 at 6:15 pm to Aubie Spr96
quote:
VWINX. This is what I use instead of the money market account.
VWINX is in no way, shape, or form an alternative to a money market account though. It’s 40% in stocks.
Good fund for what it does do, however.
Posted on 2/18/22 at 6:59 pm to slackster
RVP
Posted on 2/18/22 at 7:09 pm to TDawg1313
quote:
If you want 0 risk with liquidity, go for a high-yield savings account. We parked our emergency fund in one through Marcus. .50% which is obviously small, but much better than the bank. You'd get about $800 in interest over the 18 months.
FYI SoFi just got their bank charter and so have gone back to 1% with direct deposit up to $50k in checking, savings and "vaults" ($150,000 total).
Posted on 2/19/22 at 6:15 am to Auburn1968
quote:
Hard assets sound good about now. With inflation running at 7% and in reality much more, letting it sit would be like watching ice melt on a warm day.
Good comments. Munger said it best “I assume and invest with the thought the USD and currencies will be worthless in 100 years”. He’s likely right.
The dollar has lost over 96% of its value. $1 in 1800 is equivalent in purchasing power to around $22.13 today. Today's dollar would be worth less than 4 cents back in 1913. 1913 is when the Federal Reserve took over the US banking system.
This post was edited on 2/19/22 at 6:21 am
Posted on 2/19/22 at 7:08 am to Geauxldilocks
quote:
The dollar has lost over 96% of its value. $1 in 1800 is equivalent in purchasing power to around $22.13 today.
While factual it isn't really that important over his time line. He's talking about 18 months. Not 200 years.
Posted on 2/21/22 at 7:33 am to whodatigahbait
quote:
At this point, wait a month until after the fed raises and ladder out CDs $25K in each 3/6/9/12 months, roll the 3 month CD into 12 or 15 months when it matures and so forth. You won't get rich but you are taking zero risk and will get a return above your cash.
Will be doing this exact thing as soon as rates start creeping.
Posted on 2/21/22 at 8:19 am to gpburdell
What is the rate on these I-bonds? I am in the same boat here. However I also need to buy a house. I hate to put it all in the house and have no liquidity.
Posted on 2/21/22 at 8:36 am to Geauxldilocks
quote:
Good comments. Munger said it best “I assume and invest with the thought the USD and currencies will be worthless in 100 years”. He’s likely right.
That is what he said. But he uses that a justification to keep money invested in the stock market in companies that produce something.
Warren and Charlie have always been against mostly against hard assest. Especially gold, and they are not huge fans of real estate either
Posted on 2/21/22 at 9:00 am to GREENHEAD22
quote:
What is the rate on these I-bonds? I am in the same boat here. However I also need to buy a house. I hate to put it all in the house and have no liquidity.
a few weeks ago it was 7.2%.
Posted on 2/21/22 at 10:11 am to notsince98
Any downside to this other than limit you can put in?
If I am understanding this correctly between the wife and I we can get $30k worth.
Can you buy these every year or just onetime?
If I am understanding this correctly between the wife and I we can get $30k worth.
Can you buy these every year or just onetime?
This post was edited on 2/21/22 at 10:19 am
Posted on 2/21/22 at 10:21 am to GREENHEAD22
There are time limitations on where you can pull them out and receive all of the return
Posted on 2/21/22 at 10:23 am to gpburdell
Where are you seeing 40k, everything I am seeing is k20 electronic and 10k paper with tax return.
Posted on 2/21/22 at 10:28 am to jimbeam
Everything I am seeing is can take out in full after one year and any withdrawal in the first 5 yrs has a 3month interest penalty. Safest play I have seen so far for a 7+ interest.
This post was edited on 2/21/22 at 10:33 am
Posted on 2/21/22 at 11:32 am to GREENHEAD22
quote:
Where are you seeing 40k, everything I am seeing is k20 electronic and 10k paper with tax return.
Treasury Direct doesn't spell this out explicitly but it's allowed. I learned about this over on Bogleheads. I've done this myself, my mom and I have bought each other 10k gifts this year and put 40k total into I-bonds in January. We might go ahead and front load more before the rate changes in May.
https://www.treasurydirect.gov/indiv/planning/plan_gifts.htm
https://thefinancebuff.com/buy-i-bonds-as-gift.html
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