r/investing
Where to move money for a house purchase that has been delayed.
Seeking advice on reallocating house down payment funds delayed by 3-4 years, considering inflation and bond ETF volatility.
I've been saving for a down payment on a house but now it does not seem it will happen for at least another 3-4 years.
I have all that money in TFLO (Treasury Floating Rate Bond ETF) but I know I'm loosing money because of inflation.
I've look at TIP and STIP but I already got burned when the Feds increased interest rates.
Also, I've looked at FDHY and it seems like a good choice but it does have some volatility and if I need the money and it drops, I'm screwed.
Any type or category of investments I should look at?
Thank you!
I'm in the 22%-24% bracket and have 7% state tax (that's why I use TFLO and USFR for emergency fund).
SGOV
High interest savings account?
I'd keep it liquid in regular high interest savings, depending on why it's been delayed, you never know when circumstances might change again and you might wanna to access it quickly. With interest rates where they are you can still beat inflation on cash savings.
Good point.
Contrary to most people, I believe 3-4 years is enough to ride out volatility and 30-40% gains is worth the risk. It should be properly diversified between asset classes and geographic location of course.
Money market or HYSA. You could do a short term treasury bond ladder but honestly…the difference is marginal
Good to know.
With a 3-4 yr delay I'd totally be putting at least 50% in the market vs HYSA. Ymmv
50% money market as dry powder, 50% in ETFs sounds good.
There's only one right answer
Blackjack and hookers?