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Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
59434 posts

Parking $50k for 24 to 36 months
With my relocation done, I have about $50k surplus that I won't need until I either reverse the relocation or settle here. I considered buying land back home, but that's buying a bill and things can change in that period of time. I'd rather stay somewhat liquid.

Normally, I would mutual fund the whole thing. However, I'm tentative about the market being at a top. Bonds don't seem to be the sure thing they used to be - not sure any increases over a CD would be worth the risk.

I'm considering opening a Vanguard account for this purpose. Should I just VFINX and not worry about it? Other funds that provide a less than bumpy ride over this time window?

I'm not risk averse - I'm willing to incur some risk to beat inflation. But the time window is the time window.

I appreciate any suggestions and analysis.


ATLdawg25
Georgia Fan
Atlanta, GA
Member since Oct 2014
3575 posts

re: Parking $50k for 24 to 36 months
spread among a few cryptos and buy a small country with cash in 36 months.

But for real, (assuming the capital is being used to buy a primary residence) I would go with a high yield savings account and take my 1%. IF the money doesn't have a dedicated purpose, I could be convinced to put a portion of it in mutual funds.

I don't think Trump will do anything to hurt the economy, but the possibility of irrational investors reacting to whatever he does makes me hesitant.



Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
59434 posts

re: Parking $50k for 24 to 36 months
quote:

(assuming the capital is being used to buy a primary residence)


That is what it is being reserved, for.

quote:

I would go with a high yield savings account and take my 1%.


You think CDs are worth the hassle? I think I can squeeze another half percent, over a bank's savings rate - at least a quarter point.


td1
Member since Oct 2015
136 posts

re: Parking $50k for 24 to 36 months
Find a credit union that you can join, park it in one of their high yield savings accounts. You will get the best yield for that short amount of time, plus if you need to access some of it no penalties like with a CD. No commercial bank will have a rate anywhere close. But, check their terms some make you keep it there for a certain amount of time to earn that rate, but I would bet 24 months may be long enough.


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Duckman13
LSU Fan
Tiger Stadium
Member since Dec 2006
2973 posts

re: Parking $50k for 24 to 36 months
quote:

I'm not risk averse - I'm willing to incur some risk to beat inflation. But the time window is the time window.


Id grab a couple of vanguard funds: VTSAX, VDADX.


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Tiger1414
LSU Fan
Baton Rouge
Member since Jun 2017
9 posts

re: Parking $50k for 24 to 36 months
Capital One 360 has a 1.1% money market rate, and CDs for 24 months at 1.6%. I think the penalty for pulling the money out early is six months interest. The account is very easy to set up. I am also concerned about the market being high, but I'm no professional...

I have part of my emergency fund in 60 month CDs (2.1%). I broke the investments into $2,500 intervals. I can still get a decent rate, and if I need the money, the penalty is only six months interest. And, I have the option of only cashing out at $2500 intervals. Again, i'm no professional.
This post was edited on 8/17 at 10:36 am


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10
UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
137 posts

re: Parking $50k for 24 to 36 months
Yeah, stocks seems like a pretty bad idea over this time frame. Show of hands for people that don't think a 20%+ drop is possible between 3/2009 and 8/2020? Let that sink in before you do some S&P with your house money...

Look at some ST Bonds if you want to take a little bit more risk than the CD and are willing to accept some fluctuation... THIIX, WEFIX, LLDYX, PIMSX, etc.



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31
foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
36890 posts

re: Parking $50k for 24 to 36 months
quote:

Bonds don't seem to be the sure thing they used to be


They pretty much are if you buy one that matures in 24 to 36 months.

If you want a safe place to park money for 2-3 years, then you have to accept lower returns. If you don't want lower returns, then you have to accept some risk of loss.


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dabigfella
Houston Astros Fan
Member since Mar 2016
6684 posts

re: Parking $50k for 24 to 36 months
quote:

I'm tentative about the market being at a top


Everyone always says this and my reply is just short the SPY then if you feel that way.

Why are we at a top now? I remember countless threads in 2013,2014,2015,2016 that all said the same thing and everyone who said that was wrong.

I still think stocks are cheap, perhaps there will be hiccups along the way, but relative to where interest rates are currently, stocks are still the best game in town.


Lsu789
Member since Jul 2017
23 posts

re: Parking $50k for 24 to 36 months
I agree with everything you said, besides stocks are cheap.


MusclesofBrussels
Member since Dec 2015
1229 posts

re: Parking $50k for 24 to 36 months
quote:

dabigfella




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30
dabigfella
Houston Astros Fan
Member since Mar 2016
6684 posts

re: Parking $50k for 24 to 36 months
Why aren't stocks cheap? Look at where the 10 year bond is and where the s&p earnings are? The s&p 500 has an earnings yield of around 5% at the current time vs a much lower yield on the 10 year.....so again why aren't stocks cheap?
This post was edited on 8/19 at 5:29 pm


FunroePete
LA-Lafayette Fan
Member since Dec 2012
1333 posts

re: Parking $50k for 24 to 36 months
quote:


Message
Parking $50k for 24 to 36 months

100% TSLA


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thatguy777
LSU Fan
br
Member since Feb 2007
1667 posts

re: Parking $50k for 24 to 36 months
He's back!!! Yusss


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sneakytiger
LSU Fan
Member since Oct 2007
2087 posts

re: Parking $50k for 24 to 36 months
Goldman Sachs high yield savings. No fees and 1.2 percent yield.


TigerinOkieHell
LSU Fan
Oklahoma City
Member since Oct 2010
2097 posts

re: Parking $50k for 24 to 36 months
A few weeks back there was a post about 5% savings accounts through prepaid card services like netspend. I was able to set one up pretty easily last month.
LINK /
Seems like a guaranteed 5% return would be a decent option for this situation.


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