Savings Vehicle for Home Remodel

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wabash_sphinx
Posts: 45
Joined: Mon Mar 02, 2015 8:25 pm

Savings Vehicle for Home Remodel

Post by wabash_sphinx » Sat Nov 10, 2018 5:44 pm

Looking to get Boglehead advice on what vehicle you would use to save a sum of money you are saving for a short term purchase (future car, down payment, home remodel, etc).

I’m looking to save about 100k for a home remodel in 2-3 years. Do I just put this in savings? CDs? Index bond fund in taxable account?

Thanks in advance

retiredjg
Posts: 34177
Joined: Thu Jan 10, 2008 12:56 pm

Re: Savings Vehicle for Home Remodel

Post by retiredjg » Sat Nov 10, 2018 6:26 pm

High yield savings, CD, money market, or short term bond fund if you are willing to take the risk of losing a little.

StopIroningShirts
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Location: Texas
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Re: Savings Vehicle for Home Remodel

Post by StopIroningShirts » Sat Nov 10, 2018 7:32 pm

Its a toss up between an ultra-short term bond fund or playing the game of finding the most recent high yield money market account to open.

If you can get 2.20%+ without locking up the money and without taking any risk of loss, that's a good deal

sport
Posts: 7401
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Re: Savings Vehicle for Home Remodel

Post by sport » Sat Nov 10, 2018 8:08 pm

StopIroningShirts wrote:
Sat Nov 10, 2018 7:32 pm
Its a toss up between an ultra-short term bond fund or playing the game of finding the most recent high yield money market account to open.

If you can get 2.20%+ without locking up the money and without taking any risk of loss, that's a good deal
Vanguard Money Market Prime fund has an SEC yield of 2.23%.

wabash_sphinx
Posts: 45
Joined: Mon Mar 02, 2015 8:25 pm

Re: Savings Vehicle for Home Remodel

Post by wabash_sphinx » Sat Nov 10, 2018 8:10 pm

Thank you both.

Any recommendations on banks that typically have the best rates? I'm looking at Ally savings at 1.9%, CDs for 18 mo at 2.7%.

Without going through every local bank, are there any other major banks that typically beat those rates?

wabash_sphinx
Posts: 45
Joined: Mon Mar 02, 2015 8:25 pm

Re: Savings Vehicle for Home Remodel

Post by wabash_sphinx » Sat Nov 10, 2018 8:10 pm

sport wrote:
Sat Nov 10, 2018 8:08 pm
StopIroningShirts wrote:
Sat Nov 10, 2018 7:32 pm
Its a toss up between an ultra-short term bond fund or playing the game of finding the most recent high yield money market account to open.

If you can get 2.20%+ without locking up the money and without taking any risk of loss, that's a good deal
Vanguard Money Market Prime fund has an SEC yield of 2.23%.
Awesome, thanks

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