I need help with Investments - any finance experts here?

ETSFs like VOO or VTI

You're doing it all wrong ... it's much easier ... just marry someone wealthy.

The fed has said they will basically keep interest rates at zero regardless of inflation. That means there is so much liquidity that asset values have been forced to move up and the USD will be worth less so by holding cash you will be losing money. Aside from some emergency funds everything should be invested in some form of equity (stocks, private assets, real estate, foreign securities or currency, whatever) unless you need the money in 6 months and even then you should consider how fixed the need is for that cash.

It’s a really odd time to invest. The economy is mediocre at best but and normally you would be more risk off right now but with fed policies it’s really risky to hold cash.

Did you deduct the property taxes, maintenance, and utilities from the returns? The only time to buy a home is when someone has a family. I believe the stock market is the biggest wealth creater there is. I have a lot of money in REITS.

the fed wrote:

The fed has said they will basically keep interest rates at zero regardless of inflation. That means there is so much liquidity that asset values have been forced to move up and the USD will be worth less so by holding cash you will be losing money. Aside from some emergency funds everything should be invested in some form of equity (stocks, private assets, real estate, foreign securities or currency, whatever) unless you need the money in 6 months and even then you should consider how fixed the need is for that cash.

It’s a really odd time to invest. The economy is mediocre at best but and normally you would be more risk off right now but with fed policies it’s really risky to hold cash.

Yet, the dollar is rising as the stock market is falling.

I would keep the money in a federally insured savings account for now. All of the usual short term investments are losing value due to market flight. The dollar is strong and is only getting stronger as everyone dumps and moves to cash.

October is going to be hell for the markets. I would not be surprised to see the DJI down around 20k again by late October as investors move to safe havens as corporate earnings tank and everyone sh#ts a brick over the US election and potential post-election chaos.

Once the dust has settled, move about half the savings into an index fund with low fees if you are looking at waiting at least another 2-3 years before you buy.

Cryptocurrency is the way forward.

Ethereum

Bitcoin

XRP

Get investing and watch that money grow.

You have a "substantial amount of money" but are earning "basically no interest". You do need investment help. How about GICs/Term Deposits? Zero risk (if you do it right) and you'd at least get a couple percent.

lt man wrote:

I have a substantial amount of money sitting in my general bank savings account. I'm still a few years away from being able to buy a house, but that money is earning basically no interest.

The system is broken when the bank charges you very high interest rates but you only earn less than .01% interest from them.

highhoppingworm wrote:

One comment, I have always felt that owning property as a financial milestone was a bit dumb. I would much rather give a compounding portfolio/asset time in the market. I also suspect you are quite young. Don’t underestimate how much home ownership complicates your life and ties you down.

the best part about owning a home is that it forces us to save every month. In the form of paying down a mortgage. That's it. That's the biggest benefit. A majority of people can't do that without being forced to by the mortgage company.

But the idea is that you pay down a mortgage over 30 years of working and at the end you have a large asset that is 100% yours and free and clear of debt.

highhoppingworm wrote:

Discover, Ally and a few other online banks offer 1.0x% interest accounts. I am a long time customer of discover and they have great service as well.

As to your question there is no great answer. If you need access to the capital in the next 1-3 years there is no risk free place to park it and see what you would consider acceptable returns.

One comment, I have always felt that owning property as a financial milestone was a bit dumb. I would much rather give a compounding portfolio/asset time in the market. I also suspect you are quite young. Don’t underestimate how much home ownership complicates your life and ties you down.

Correct. OP, you'll just have to accept low returns in the ~1.00% range. A 1 -3 yr time horizon means that almost none of those funds should be exposed to any sort of risk asset, such as stocks or gold.

In the case if you're planning on working with the stock market (which I sincerely do not recommend) you're going to need a merchant account to secure your finances, and operate with your money faster. Here's about this online payment service https://wellcoinpay.com