Author Topic: How would you invest a stash you will need in 3 years?  (Read 1240 times)

Adam Zapple

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How would you invest a stash you will need in 3 years?
« on: June 04, 2019, 06:13:18 AM »
If you had plans to make a large purchase or investment 3 years from now, how would you invest?

mies

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Re: How would you invest a stash you will need in 3 years?
« Reply #1 on: June 04, 2019, 06:49:04 AM »
I probably wouldn’t invest it if I needed it that soon. I’d just keep it in a savings account or a CD.

use2betrix

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Re: How would you invest a stash you will need in 3 years?
« Reply #2 on: June 04, 2019, 06:55:48 AM »
I certainly wouldn’t put it in 100% VTSAX if I was positive I needed it in 3 years.

Wrenchturner

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Re: How would you invest a stash you will need in 3 years?
« Reply #3 on: June 04, 2019, 06:56:02 AM »
Stocks/ETFs?

Spitfire

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Re: How would you invest a stash you will need in 3 years?
« Reply #4 on: June 04, 2019, 07:30:09 AM »
I probably wouldn’t invest it if I needed it that soon. I’d just keep it in a savings account or a CD.

+1

If you know you will need it that soon, the stock market is too risky IMO. 

NorCal

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Re: How would you invest a stash you will need in 3 years?
« Reply #5 on: June 04, 2019, 07:34:31 AM »
The question is, are you willing to take some risk with the money, or no risk with the money?

If no risk, I would buy Treasuries that mature in 3 years, or possibly a CD.  Buy the treasuries directly instead of owning them through a fund.

If you're willing to take some risk, I would put it in a diversified portfolio of bond funds (govt, corporate, intl, and a small part high-yield), and up to 10% in the stock market.

Linea_Norway

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Re: How would you invest a stash you will need in 3 years?
« Reply #6 on: June 04, 2019, 07:45:38 AM »
When I asked an independent financial advisor about this, but for a 1-2 year period, he advised normal high interest bank account. Divided on as many banks as necessary to not ecceed their guaranteed payout in case of going bankrupt.

rantk81

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Re: How would you invest a stash you will need in 3 years?
« Reply #7 on: June 04, 2019, 07:48:56 AM »
Something in 3 years? I'd put it in an Ally online savings account.

Bucksandreds

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Re: How would you invest a stash you will need in 3 years?
« Reply #8 on: June 04, 2019, 08:24:18 AM »
Mayonaise jar in back yard. CD would get you the best guaranteed return.

LifeHappens

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Re: How would you invest a stash you will need in 3 years?
« Reply #9 on: June 04, 2019, 09:21:01 AM »
I would use at least part of it to get bank account bonuses. The rest would go in CDs.

NorthernBlitz

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Re: How would you invest a stash you will need in 3 years?
« Reply #10 on: June 04, 2019, 09:28:15 AM »
I would probably put it in an online savings account with a "high rate of return".

I like the bank account bonus idea because it's a guaranteed high rate of return for little effort. But it might depend on how much money you're talking about.

FIRE@50

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Re: How would you invest a stash you will need in 3 years?
« Reply #11 on: June 04, 2019, 10:44:24 AM »
I would use the money to pay down my mortgage and then get a HELOC in 3 years.

John Galt incarnate!

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Re: How would you invest a stash you will need in 3 years?
« Reply #12 on: June 04, 2019, 10:49:34 AM »
I probably wouldn’t invest it if I needed it that soon. I’d just keep it in a savings account or a CD.

Agree.



Laserjet3051

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Re: How would you invest a stash you will need in 3 years?
« Reply #13 on: June 04, 2019, 11:41:10 AM »
BSV

wageslave23

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Re: How would you invest a stash you will need in 3 years?
« Reply #14 on: June 04, 2019, 12:27:43 PM »
I would invest it if you have flexibility in where you pull the funds from in 3 years.  For example - if I had 200k and knew that I needed 100k to buy a house in 3 years, I would have it all invested in the stock market.  You are rolling the dice that the stock market will be up in 3 years vs. down, but the odds are in your favor.  If you know that you need 100k and you only have 100k and will not be earning more money in the meantime, then the risk isn't worth it because if the market goes down then you won't be able to buy the house you want.

Adam Zapple

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Re: How would you invest a stash you will need in 3 years?
« Reply #15 on: June 05, 2019, 07:17:18 AM »
Thanks for the replies.  I'm leaning towards a 40/60 stock/fixed income mix.  I'm willing to take some risk.

ctuser1

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Re: How would you invest a stash you will need in 3 years?
« Reply #16 on: June 05, 2019, 07:28:59 AM »
How hard is the 3 year deadline?

If the date can't move, I'd be very conservative!

If it is something a little more flexible, something like purchasing a home or your dream vacation, then I'd go VTSAX and time that appropriately based on whether I have enough money or not!!

SwitchActiveDWG

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Re: How would you invest a stash you will need in 3 years?
« Reply #17 on: June 05, 2019, 07:50:42 AM »
I'm in a similar situation where I need cash available in a short time horizon. I have been used a combination of laddered CDs and ~2% savings accounts.

Goatee Joe

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Re: How would you invest a stash you will need in 3 years?
« Reply #18 on: June 05, 2019, 08:25:51 AM »
Assuming you mean you absolutely must have it in cash in precisely 3 years:  I'd buy a 3 year CD.  Or stick it in a money market fund.  Most of those are paying 2% or better these days.