Poll

Where to put the short-stash

60/40
1 (16.7%)
Leave in cash
5 (83.3%)

Total Members Voted: 6

Author Topic: 'Education Stash'  (Read 1671 times)

FIREFTW

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'Education Stash'
« on: March 21, 2016, 12:07:59 AM »
I have saved up enough money in cash to graduate from an RN program debt free and live without working for 2 years the entire time.  In one of his blog posts, MMM mentions the possibility of putting a 'short-term stash' in a 60/40 stock/bond setup.  I am on a waiting list and it may take up to 3 years to get into RN school due to it being a lottery setup (or I could get in in next semester).  My question is: what are some of your thoughts on where to put the stash?  Would you guys think it appropriate/wise given my situation?  (BTW I have no debt/kids or any other liabilities and refuse to take out a student loan even in a bad situation)


Thanks!

FIREFTW

kiwigirls

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Re: 'Education Stash'
« Reply #1 on: March 21, 2016, 12:19:43 AM »
Congratulations on saving up so much.  I would keep it in cash, the market is volatile and if interest rates rise (which they are picked to do over the short term) your bonds will drop in value.  I would play it safe and have the cash to hand when you get into school. 

lakemom

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Re: 'Education Stash'
« Reply #2 on: March 21, 2016, 06:17:08 AM »
Congratulations on saving up so much.  I would keep it in cash, the market is volatile and if interest rates rise (which they are picked to do over the short term) your bonds will drop in value.  I would play it safe and have the cash to hand when you get into school.

+1  Better safe than sorry especially with the lottery system where you are not sure when you will need to write a check.  Way to go to put yourself in such a great position!

SMCx3

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Re: 'Education Stash'
« Reply #3 on: March 21, 2016, 06:22:10 AM »
I would hang on this stash as you have planned all along.  If you are this good at saving, set some new goals and keep going.  You are in a great position.

Tjat

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Re: 'Education Stash'
« Reply #4 on: March 21, 2016, 06:41:19 AM »
I'd do both. Keep enough in cash that if you are picked in the lottery, you can fund the first semester or two or three in cash. Put the difference in an investment fund.

prognastat

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Re: 'Education Stash'
« Reply #5 on: March 21, 2016, 07:20:41 AM »
Hey,

I found this the other day, now I will be completely honest and say that I have not relied it myself yet at all. However others are and seem to be pretty positive about it being legitimate and getting paid out. Although you might not make as much as you potentially could in stocks it is a constant payout. You would be getting 5% interest per year so counting inflation that would be allowing it to grow 3% per year. The other benefit would be that it is completely available for you to use, but you would probably have to have multiple accounts running to have a decent bit of cash in it.

http://cashcowcouple.com/investing/5-interest-savings-account/

If you are interested though you'd probably want to look in to it some more than I have so far.