Author Topic: Question: Where should I stick $50k for 5 years or less?  (Read 842 times)

poetdereves

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Question: Where should I stick $50k for 5 years or less?
« on: August 09, 2017, 08:32:04 AM »
My wife and I recently sold our home and made around $75k. We used a good chunk of it to pay for repairs on the house that we had to put on a credit card (replace roof, water heater issues, paint, etc.) and our moving expenses.  We used $11k of it to max out both of our Roth IRAs for this year as well. We still have $50k left and want some suggestions on where to keep it for the next 5 or so years while we decide whether or not to purchase a house where we recently moved. It currently sits in an ally savings account making 1.15%, but that doesn't even beat inflation here. I can put $10k into my checking account and make 3.15% on it, which is better, but I am capped at $10k in that account. So... what now? Betterment or vanguard? Leave it? Spend it all on a couple new cars and a round the world trip? (I kid, I kid).

frugaliknowit

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Re: Question: Where should I stick $50k for 5 years or less?
« Reply #1 on: August 09, 2017, 09:33:18 AM »
My "possible car purchase in the future" (don't need to own a car NOW) is parked at:  https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0103

There's downside risk, but probably limited to about ~20% or so (like if the stock market completely tanked...).  It's a "steady Freddy" kind of fund.

poetdereves

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Re: Question: Where should I stick $50k for 5 years or less?
« Reply #2 on: August 09, 2017, 09:51:15 AM »
Awesome. Those are the kind of suggestions I am hoping for!