Author Topic: Question about how to save for a car?  (Read 1040 times)

tsmith321

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Question about how to save for a car?
« on: February 05, 2017, 12:48:24 PM »
This isn't a budgeting question, but rather where to put the money we intend to use for a car.

My wife and I were discussing that we should start planning to save for a new "used" car.  At first she mentioned that we would just put any extra money into our Ally savings account (1% interest).  I mentioned that maybe we just invest the money in Vanguard then pull the money out when we are looking to buy.  The more I thought about it, the more I was questioning if that would be a good idea because of tax implications.

I also would prefer to not take any money out of Vanguard until retirement. (We do have 401k, Roths, and Pension separate from Vanguard)

How would you guys/gals handle this?  On a side note we are not planning on purchasing for another 24 months at least.  This is just preparation.

Thanks

Tom

NoStacheOhio

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Re: Question about how to save for a car?
« Reply #1 on: February 05, 2017, 01:52:08 PM »
If it's money you need for anything in the near-term (five years or less), keep it in a vanilla savings account.