Author Topic: Investing A House Downpayment  (Read 2461 times)

RusticBohemian

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Investing A House Downpayment
« on: January 03, 2015, 09:11:28 PM »
I'm saving some money up for a house downpayment, but I likely won't spring for the actual purchase for between 1 and 3 years.

I'm curious to know if it would be worth investing my money in a Vanguard Bond fund (VFSTX), and if so, what's the minimum worthwhile investment period?

Any insights?

Thanks.

waltworks

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Re: Investing A House Downpayment
« Reply #1 on: January 03, 2015, 09:21:34 PM »
Do a search, covered about once a day here. Long story short: FDIC insured high-int savings acct. Yeah, 1% or so. Suck it up, your risk tolerance for DP funds should be basically zero.

-W

chuckaluck

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Re: Investing A House Downpayment
« Reply #2 on: January 04, 2015, 02:35:53 AM »
Forget about bond funds for cash you'll need in 1 to 3 years for something like a down payment.  Take the excellent advice that waltworks gave you earlier ---- same advice I gave my son: High-yield, on-line savings account. 

jpvt128

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Re: Investing A House Downpayment
« Reply #3 on: January 04, 2015, 08:35:23 PM »
I am going through the exact same thing right now. I am sticking with an Ally Savings Account. They have very competitive interest rates on their savings and money market accounts and I have had good luck with Ally in the past. It would be pretty challenging to do any substantial investing with such a short term goal.

HipGnosis

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Re: Investing A House Downpayment
« Reply #4 on: January 05, 2015, 11:35:11 AM »
High-yield, on-line savings account.
That's an oxymoron.


TheThirstyStag

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Re: Investing A House Downpayment
« Reply #5 on: January 07, 2015, 09:46:57 AM »
I'd like to echo what has been said here.  Captialone360 or Ally is probably the way to go.  The money is pretty liquid (You can have it in a manner of days and it takes 30 seconds to request).