Short term investment suggestions? Around 5 years.

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anaparafunds
Posts: 27
Joined: Sun Jul 18, 2021 5:50 am

Short term investment suggestions? Around 5 years.

Post by anaparafunds »

I'd like to get some short term investment suggestions and would need the funds in about 5 years time.

I'm thinking of the following:

10% Cash on Hand
25% High Yield Savings Account, Money Market Savings Account or Certificate of Deposits.
25% I-Bonds or something similar
40% Stocks(?) in Taxable brokerage account

I'm not sure how I should play the taxable brokerage account except that I should at least hold them for 1 year and 1 day to take advantage of long term capital gains.

I've seen those popular etfs like voo but since I first saw the etf database last night, my head was spinning with those insanely fast growing etfs that I've never heard about.

It seems to be against the bogle principle but I hope I'd be entertained with my questions for this short term strategy because people here seem very knowledgeable about investments.
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midareff
Posts: 7665
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Short term investment suggestions? Around 5 years.

Post by midareff »

5 years and under is best in high yield insured savings.
retiredjg
Posts: 44954
Joined: Thu Jan 10, 2008 12:56 pm

Re: Short term investment suggestions? Around 5 years.

Post by retiredjg »

If it is important to have the money available at a certain time, you should not invest in stocks. For bonds, short term only.

If your timeline is flexible, a small amount in stocks (20?)
dbr
Posts: 36437
Joined: Sun Mar 04, 2007 9:50 am

Re: Short term investment suggestions? Around 5 years.

Post by dbr »

Don't forget that 4 years from now you will need the money in one year. If by some chance you put some if it in stocks now, you don't want it there then. That means your stock investing timeline is 4-3-2-1-0 or best not to do it at all.

Put differently that short a time is suited to saving rather than investing. You can get 0%-2% interest rates on different kinds of savings, maybe.
tashnewbie
Posts: 1697
Joined: Thu Apr 23, 2020 12:44 pm

Re: Short term investment suggestions? Around 5 years.

Post by tashnewbie »

There have been a lot of posts recently about short term investment ideas.

Here's a response I made to one of those posts, which might be helpful for you too:

--Rewards checking accounts (one of my local credit unions offers 5% on $10k if I have certain monthly direct deposits)
--Series I Savings bonds (paying 3.54% right now; rate adjusted biannually with inflation; can't be sold for first year; lose 3 months' interest if sold within first 5 years)
--Online/fintech savings accounts. Some are paying 3%. See a recent listing here: viewtopic.php?p=6127776#p6127776
--Online "high" yield savings accounts (Ally has one, Capital One, Marcus, etc). Probably around 0.5% now.
--No-penalty CDs (Ally has some); I think these are paying between 0.5% and 1% nowadays
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