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Short term time horizon - save, invest or speculate?

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  • Short term time horizon - save, invest or speculate?

    Finishing training in 6 months. Saving up a sizable amount of income from moonlighting. I do plan on using some of these funds in July 2020 for vacation and moving costs but I'm hoping it won't amount to more than 20% of what I'll have saved up to at that point. The remainder would go towards a downpayment on a property some time in spring 2021 if nothing unexpected happens. In total an estimated 1.5 year time horizon for these funds.

    Given that I have to use some of these funds in 6 months and even the 1.5 years total horizon doesn't seem long enough to hedge for volatility or market change should I just keep it all in a savings account? I'm not happy watching those funds sit there and do nothing but I don't see a safer way. Every traditional investment option seems more speculative with only a year or so in mind. Any opinions?

  • #2
    Cash, bonds for excitement. Stocks for none of those things.

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    • #3
      100% cash equivalents / short term treasuries

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      • #4
        We typically recommend high interest savings for unknown expenses in the next 5 yrs and high-quality corporate bonds for planned goals ($ saved for a home downpayment, for ex), timed to mature at date of need.
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          Short term savings, no question.

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          • #6
            Originally posted by TravisRADMD View Post
            Finishing training in 6 months.... The remainder would go towards a downpayment on a property some time in spring 2021 if nothing unexpected happens. In total an estimated 1.5 year time horizon for these funds.
            do you have a job already lined up?

            is this planned RE purchase primary home? Or investment?

            do you have student loans or other debt?

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