Saving for A Deal

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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sethmac
Posts: 13
Joined: Tue Sep 01, 2020 4:51 pm

Saving for A Deal

Post by sethmac »

I figure at some point before I retire an opportunity is going to come along that I would like to have some money available for. Assuming the need is flexible and longer than 10 years (e.g. buying a rural piece of land (we are outdoorsy), making a large purchase (a pool if my wife got her way), would you suggest using a taxable brokerage account to invest and eventually have this money available?

If not, what other good options exist that can still put my money to work? Again the timeframe is flexible
sailaway
Posts: 2212
Joined: Fri May 12, 2017 1:11 pm

Re: Saving for A Deal

Post by sailaway »

With that time frame and that level of vagueness, I would (and do) just consider it part of my long term portfolio. These are the kinds of things you can do without if the deal comes along when stocks are down so much you don't have enough available to cash out.
Last edited by sailaway on Tue Sep 15, 2020 9:26 pm, edited 1 time in total.
livesoft
Posts: 73206
Joined: Thu Mar 01, 2007 8:00 pm

Re: Saving for A Deal

Post by livesoft »

We always used a taxable brokerage account for unspecified purchases of any size ($0 to $500,000) for any time more than 2 weeks into the future. We do not use a savings account for such things. If one doesn't spend it, then it does tend to grow into a bigger amount.
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Lee_WSP
Posts: 3052
Joined: Fri Apr 19, 2019 5:15 pm
Location: Arizona

Re: Saving for A Deal

Post by Lee_WSP »

If the purchase is unspecified, how can there be a timeline? Unless the money had to be spent at a certain date, I don't get how there's a timeline for unspecified purchases.

I guess I just don't understand how it doesn't meet the criteria of taxable investments.
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