The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: FerrumB5 on November 24, 2015, 10:17:36 PM
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Hello All,
here's my situation. I will need to pay 5k for DW tuition in April 2016 (and then again another 5-7k in Fall). Right now this money sits as cash and depreciates with inflation. What would a Mustachian do in this case? Investing it and selling in 5 months will possibly cause short term cap gain and tax and gain itself is not guaranteed (and I do need to pay the initial invested amount towards tuition)
Note: I have Vanguard taxable with VIMAX
Open a short term CD? This will come at 0.00000x%
Do nothing? Probably the safest option :)
Thanks!
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In terms of where you hold your investment:your forum profile says Illinois, and you say you are going to pay for tuition. Can you put it in a 529 to get a tax deduction?
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For money needed in less than 5 years, use a high yield savings account. I use Ally, but there are others available - mostly 0.9 to 1% earned.
You should not invest any money that you'd need in that short a time frame.