So, I am currently a renter but I am beginning the process of saving money for a home downpayment (hopefully a 20 percent downpayment). I plan to save $1,500 to $1,800 per month for the next 18 to 36 months, depending on how long I can hold out before deciding to take the plunge and buy.
The question is: where should I be storing this money? I know that plenty of people would not want this money in a fund where there could be some volatity, as that could lead to the loss of a decent amount of the principal if the market takes a downturn. Those people would say to put the money in a Money Market Account or a CD. However, MMAs and CDs maybe pay out 1 percent, which just isn't much. I have a Vanguard Brokerage account and have put $3,800 into Vanguard EFTs. Is that a wise idea for where to store my downpayment money so that it can hopefully grow with a decent amount of interest? Is that too risky?
I was thinking that putting most of it in VOO (S&P 500) and VTI (Total Stock Market) would be the best way to go, with maybe a little in bonds.