Hello all,
Question in the title. HYSA are very low right now (Ally at 1.25%/APY). I have a credit union currently with a unique savings plan (You make monthly deposits through payroll deduction, it's a "high" variable APY currently at 3.5%) that matures yearly (11-12 month cycles). I'm currently putting $750 monthly (9K yearly). After the account matures, are there any suggestions on where I should park my money?
Goal is to have enough for a down payment for a house in southern california in roughly 4-5 years. Would it be a good idea to put it in an index fund/etf like VTI/VOO after maturity every year, or would that be too volatile? Since the timeframe is so long, would that be acceptable, or is it better/safer to just keep it in a HYSA even with the low interest rate?
Thoughts are:
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Once account matures, put into VTI/VOO/other "safe" etf, every year until 4-5 years and withdraw
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Do like above, but only for the first two years, rest into HYSA
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Once account matures, put into HYSA or CD ladder for safety
Appreciate any feedback!
Submitted June 11, 2020 at 11:37PM by bobskie9999 https://ift.tt/2XUA9ik
