Money Matters
anssett
member
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Where to store house downpayment $$?
My sweetie and I are saving over the next 1-2 years for a large house downpayment (50-100K). We've already got 5-10K sitting in our checking account while I figure out where to put it.
We have some money in CDs but even the best ones don't have great rates. I opened a brokerage account through TIAA-CREF (they handle our retirement accounts). I think it makes more sense to put most of the money there in SAFE investments (bonds most likely). For minimally-volatile investments, is there a catch I should be aware of? This account doesn't have fees, and the money has no penalties to get it back out.
Thoughts?
Re: Where to store house downpayment $$?
This is money you will need in the short term. So, while the savings rates stink and so do CD rates, I would still put my money in them and keep them from losing money. You are guaranteed a rate of return with these savings vehicles. With a pending needed down payment your goal should be to retain as much of the money as possible.
The bond market seems stable now, because interest rates are low, but as they increase (and they are), the bond market will lose money.
For more reading on this Bing or Google a phrase like, "when do bonds lose money" or "when does the bond market lose money"
If you feel comfortable enough and know you will be hands-on enough with these investments, you can use bonds as a cash position, but you have to closely monitor the markets and pull out your money and reinvest it elsewhere when the time comes.