Author Topic: Short-Medium Term Options for Small Sum  (Read 1314 times)


  • 5 O'Clock Shadow
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Short-Medium Term Options for Small Sum
« on: January 15, 2018, 03:06:44 PM »
I have roughly $13k in my IRA that has been in cash over the past three months in case DW and I needed it for living expenses. We recently moved for me to attend law school and were living off savings until she found a job. Happily, she just accepted a job that, combined with my side hustle, internship funding, etc. will cover our expenses. I'm now trying to decide the best way to go about putting the ~$13k back into the market.

Would you put it all back into index funds immediately, over time via dollar cost averaging, put it in CDs/bonds via the brokerage (Schwab) for now?

I'm leaning towards a series of CDs through Schwab as we're exceedingly risk-averse and will likely use this money as a down payment on our first home in 3-5 years but would appreciate the advise of the MMM community. Thanks in advance!


  • Handlebar Stache
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Re: Short-Medium Term Options for Small Sum
« Reply #1 on: January 15, 2018, 03:37:09 PM »
Anything that short term I would keep in cash equivalents or short term bonds.

Vanguard Short-Term Bond ETF (BSV) would be an option.


  • Walrus Stache
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Re: Short-Medium Term Options for Small Sum
« Reply #2 on: January 15, 2018, 08:37:22 PM »
There are FDIC-insured checking accounts that pay interest. Mine pays 2% if I make 10 card transactions per month and use direct deposit.

You won't earn much in any "exceedingly risk-averse" investment. Consider the risk that while your money is parked, inflation could pick up and both reduce the value of your 13k and simultaneously push up housing prices. You could get priced out of the market by waiting.


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