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Cash in bank - How to Invest?

1,012 537 July 18, 2017 at 09:50 PM in Finance (6)
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Hi All,

Looking for the best way to invest $60k that I currently have in a savings account. I hope to buy a house in the next 3-4 years so I'm not sure how to put my money to work without risking it all in the current "bubble" that I keep hearing about. Please help.

Background: Early 30s, stable job, living in an extremely expensive area (real estate wise).

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#2
With only 3-4 years...if you want to stay safe you could look at CDs or a bond fund. You won't gain much, but...some.
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#3
Quote from PrinceOfDa831
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Hi All,

Looking for the best way to invest $60k that I currently have in a savings account. I hope to buy a house in the next 3-4 years so I'm not sure how to put my money to work without risking it all in the current "bubble" that I keep hearing about. Please help.

Background: Early 30s, stable job, living in an extremely expensive area (real estate wise).
As the other poster said, it's better to keep this is high yield savings accounts or CD's because you are going to need it in a few years.

If you go heavy in equities it is completely possible to lose 40% in a year or so, so staying in cash/cash equivalents is what you want to do with your down payment money.
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#4
I think the best no-risk place to park cash currently is a no penalty CD at Ally Bank. It yields 1.5% and you can take the money out any time without paying a penalty.
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#5
Perhaps buying the house sooner is a good option?

I bought in 2005 or 2006 after saving up for a while and it would have made more financial sense then to have just bought earlier than save for a better down payment.

No, I'm not equating the market then to the market now, just tossing that out there as a consideration which should include your circumstances and goals.
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#6
Quote from carrucha
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Perhaps buying the house sooner is a good option?

I bought in 2005 or 2006 after saving up for a while and it would have made more financial sense then to have just bought earlier than save for a better down payment.

No, I'm not equating the market then to the market now, just tossing that out there as a consideration which should include your circumstances and goals.
probably doesn't have enough for 20% down and an emergency fund.
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Quote from BiGspendr
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Stick a milk bone us ur ass, and let the dog eat it. Works like a charm! http://i.slickdeals.net/images/smilies/emot-LMAO.gif
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#7
How about putting into vanguard funds? They have been great for me. I was planning to buy house with 50k down, I ended up delaying due to school. So invested all 50k into stable Vanguard fund and now its up 6% from March.
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#8
the only "stable" funds are federal and prime money market. neither of which will return 6%.

if you are in an index fund and the market dips you run the risk of losing your principle and the opportunity to buy a house.
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#9
Quote from joon82
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How about putting into vanguard funds? They have been great for me. I was planning to buy house with 50k down, I ended up delaying due to school. So invested all 50k into stable Vanguard fund and now its up 6% from March.
How liquid are these accounts?
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#10
Quote from PrinceOfDa831
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How liquid are these accounts?
he's probably talking about index or EFTs. if you are looking to use that money for a down payment in the short term, buying equity in the stock market isn't the route.
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Quote from dayv
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he's probably talking about index or EFTs. if you are looking to use that money for a down payment in the short term, buying equity in the stock market isn't the route.
Ok got it.

I'm also considering using first time home buyer assistance that would bring my down payment down to about 3%. Any thoughts on how that should affect my investment strategy since it might free up more cash to invest longer term?
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#12
i'm in a similiar boat as you, a little more in bank. I get .5% interest rate w/ NavyFed.
Don't want to tie up $, but looking for a way to invest and/or opportunity.
moved to NY 2.5 years ago. renting at an ridiculously high rate, mortgages in most places.
looking to move out of here within 5 yrs, hoping job takes me somewhere.
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#13
If you're in a high cost of real estate area, consider foreclosures. I started in '08 and flipped about 40 homes and owned 70 which I rented out. liquidated it all about 6 months ago.I still get into homes ($500k+) but only foreclosures since that allows some room for profit.
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#14
Quote from aznboicn
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i'm in a similiar boat as you, a little more in bank. I get .5% interest rate w/ NavyFed.
Don't want to tie up $, but looking for a way to invest and/or opportunity.
moved to NY 2.5 years ago. renting at an ridiculously high rate, mortgages in most places.
looking to move out of here within 5 yrs, hoping job takes me somewhere.

Perks on NYC: It's NYC and your salary is automatically 6-figures....


Cons of NY: Cost of living in most of the state... LMAO
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#15
except I'm not close to the 6 figure salary =/
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