Author Topic: Looking for a good place to put some money with about a 3-4 year horizon  (Read 2162 times)

Kris

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I have a chunk of money (neighborhood of $30,000 to start, and will be adding to it) that I want to place somewhere to get a good return for about a 3 1/2 year horizon.  My husband and I are retiring in June 2018, and this money will be part of what we use for living expenses at the beginning (while we're waiting for things like his SS to kick in, me to turn 59 1/2, etc.)

So, I want something that will give me a better rate of return than a savings account, of course.  We have a Vanguard account so I'm thinking of a bond fund, but I'm still a little uncertain whether to do this, and if so, which one to choose.  Right now I'm looking at the Vanguard Total Bond Market Index Admiral (VBMFX).  Thoughts?

michaelanthony

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Nobody knows what the stock or bond market will do over the next 3 1/2 years, so there is always risk.

I'd probably just sit tight and hold it in cash. Or, if you're the adventurous type, you can try your hand at some Lending Club loans, and maybe just filter the "safer" A and B graded ones and shoot for a decent 5% return.

I just put $10,000 in there myself and am trying this strategy.

waltworks

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Over that time horizon, with low risk tolerance, savings account.

Sorry, there's just nothing out there that is going to give you anything more right now without significant risk. Yes, including bonds.

-W

themagicman

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What type of drop in principle could you handle? What tax bracket are you in?

Kris

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What type of drop in principle could you handle? What tax bracket are you in?

For this particular chunk of money, I would like the principle to be relatively safe, since it will be used in the near-ish future.  28% (around $200,000/year, married filing jointly)

wtjbatman

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Park it in a savings account paying around 1%. CD(s) are an option as well, you'll have to shop rates for your time horizon.

themagicman

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What type of drop in principle could you handle? What tax bracket are you in?

For this particular chunk of money, I would like the principle to be relatively safe, since it will be used in the near-ish future.  28% (around $200,000/year, married filing jointly)

How much do you think you will add in total? You and your husband could each open a checking account at lake Michigan credit union. You can get paid 3% for up to $15k in your account as long as you use your debit card 10 times a month (I just make 10 online $1 or so payments to my cable bill)