Is a TDF a good choice for growing my money, in this case? I plan to use it for a house down payment and withdraw it in 5-7 years. I’ve been thinking of putting it in a 2030 or 2035 TDF. Should I go this route or just VTSAX and chill?
Background: USA, I will be saving in a taxable account, and I want to minimize my tax liability as much as possible.
Any stock based investment is more risky for short-term saving as there is no guarantees of returns and potential drops in value. For long term savings, the dips can be waited out and on average have historically gotten good return over the long run. For shorter term savings you could consider fixed income like CDs. While the rates are lower, they are guaranteed so you will have your money when you need it
Thank you. My idea is to grow the funds and move them to CD/HYSA when I start looking. I don’t plan to stay in my current city longer than 10 years, and for that time frame renting is more economical.
I prefer etf’s like vti, or spy. Maybe spyg of you’re bold. Be ready to stare at losses though, maybe for a while and ask yourself if you can stomach that.
What vehicles do you use for non-retirement savings? I’m happy to learn.
Ok, so… I generally will buy stuff that I think might be a good investment, then sell it at a point where it seems like it’s made enough money. When I sell it I reinvest that into vti, with leftover money in spyg.
A recent example was AMD. I bought maybe 100 shares or so of AMD after they were announced as the Tesla supplier, I think 2021? Sold it after it hit 105% ROI. Put most of the money in VTI, the rest of the money in SPYG.
Rinse repeat.
Not rich, but richer than I was.
Thanks for sharing!