Hi everyone,
Long-time reader, first-time poster here. My question relates to how to handle short-to-medium-term savings.
My wife and I are good savers, and in addition to modest retirement savings, we are making good progress towards a down payment for our first home and a new (used) car each month. In both cases, we don't have a particular date set for either purchase; however, both purchases are likely on the 1-3 year horizon as our family will hopefully grow.
Where do you all suggest we park these funds as we both wait and continue to save? Would you place them in a taxable balanced or bond fund? Leave them at the bank? As an aside, we're in the 15% tax bracket, so I believe that would relieve some burden on taxable gains in the short term. Generally, we have a high tolerance for risk, but with these funds I imagine it being a bit different. Our mentality is basically: "We don't need them until we need them, but when we do, we'll need them with a month or two."
Thanks for any resources or advice you all can provide!