The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: tsmith321 on February 05, 2017, 12:48:24 PM
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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
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If it's money you need for anything in the near-term (five years or less), keep it in a vanilla savings account.