Smartest way to invest $10,000 per month

[antoinette]

My online business has done very well and we are currently living on my husbands income so I’m able to invest about $10,000 per month.

We are planning on moving into our dream home next year and will have access to about $200k (currently in a high-yield savings account) to put towards the house but I want to think about our move when I’m choosing where to invest in case I’ll need to access these funds for whatever reason. I have most of my other investments in the VSTAX but want to know what is a good account to get the best return where I won’t lose a lot of money just in case I need to use it in a year.

We’re debt free and maxed out our Roth’s. Looking for some advice as to where to invest, thank you in advance for your help

Any advice where to invest?

[Villanelle]

My online business has done very well and we are currently living on my husbands income so I’m able to invest about $10,000 per month.

We are planning on moving into our dream home next year and will have access to about $200k (currently in a high-yield savings account) to put towards the house but I want to think about our move when I’m choosing where to invest in case I’ll need to access these funds for whatever reason. I have most of my other investments in the VSTAX but want to know what is a good account to get the best return where I won’t lose a lot of money just in case I need to use it in a year.

We’re debt free and maxed out our Roth’s. Looking for some advice as to where to invest, thank you in advance for your help

Any advice where to invest?

If you really want all those funds to be truly available, then you probably shouldn't invest them, unless you'd be comfortable selling in a down market.  But it seems to me that $200k is already a HUUUUUGE amount to have in a savings account, so you could comfortably invest this money just as you do with all your other funds--whatever allocation you've deemed appropriate for your situation. 

So I'd put it in a taxable account, in line with your regular investment allocation. 

[MustacheAndaHalf]

In your situation, I would run to a "no penalty CD" before the banks can drop their rates.  Yesterday, 30-year treasuries dropped to under 1% yield as the U.S. market plunged -8%.  The Fed is probably going to cut rates again, which will lower what you earn in your savings account.

Banks tend to operate with certainty, so I think there's a small window of time where you can grab yesterday's CD rates before they change.  That will be better than your savings account, and safer than being in the stock market.

But I wouldn't count the stock market out entirely.  If you have mostly VTSAX, you can diversify into Vanguard Total International (VTIAX) which holds the rest of the world's stock.  If that scares you, try to use 1/5th international.  If you're braver, 1/3rd is okay too.

[Michael in ABQ]

My online business has done very well and we are currently living on my husbands income so I’m able to invest about $10,000 per month.

We are planning on moving into our dream home next year and will have access to about $200k (currently in a high-yield savings account) to put towards the house but I want to think about our move when I’m choosing where to invest in case I’ll need to access these funds for whatever reason. I have most of my other investments in the VSTAX but want to know what is a good account to get the best return where I won’t lose a lot of money just in case I need to use it in a year.

We’re debt free and maxed out our Roth’s. Looking for some advice as to where to invest, thank you in advance for your help

Any advice where to invest?

Higher return = higher risk

You can find online savings accounts in the 2-3% range, possibly higher for small amounts. Anything above that is going to entail risk of loss of principal. Stocks, bonds, etc. If you really might need this money in the next year just leave it in cash (in a high yield savings account). You're obviously doing pretty well financially. So in a year if you don't end up needing the money you can pay down your mortgage, or stick it all into VTSAX at whatever price the market happens to be at. Could be higher than now, could be much lower.

[antoinette]

Thank you all so much! I really appreciate your input now I feel comfortable about what I’m going to do. Thank you!

[Rob_bob]

Short term bond funds, MINT current yield 2.56%,  NEAR 2.66%.