[quote=lepetitangel] I want to use this money as part of my downpay for a house in the next 6-month~2 years. With this in mind, would you recommend me keeping it in the stock market? Is that not enough time to get a solid return? Is it a worse idea to put into housing but hubby and I will need a SFH or larger townhome (we currently own a condo/townhome) when we want to have kids.
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Given your relatively short horizon, I would keep the money in cash or cash equivalent form.
The advice against gold is valid, IMO… It’s a commodity and can/will have fluctuation/risk.
There are CDs that are paying 2%… it’s not a lot, but it’s something. I’ve been putting my “emergency money” in the highest APR yield CDs I can find at SDCCU. I asked about the penalties for early withdrawal and worst case you give up 180 days worth of interest (principal is untouched). If it’s less than 1 year when you pull the money it’s a 90 day interest hit. Your principal is FDIC insured. You CAN pull the money out whenever you want if you forfeit some of the interest earnings. I’m not sure if all banks work this way – but I just grilled the sdccu person this week because I was figuring out what I’d do if interest rates go up.
Since you say you need the money in the next 6 to 24 months – I would not risk it in the markets (commodity, bond, stock)… Unless you’re willing to lose some of the principal.
