The guy who suggested ETFs is spot on -- Although some of the vanguard funds are pretty heavily weighted towards a few companies (namely Apple). VGT is something like 25% Apple, so I'd be careful. VOO is a good one, but Spider offers some good alternatives. I'm in a pretty similar boat sitting on about the same amount of money; I put about 30% of it into ETFs and the rest is sitting in savings probably losing money but wanted to keep it on-hand for buying a house. You could pretty easily look into a condo somewhere near a ski mountain in NH or VT and AirBB it and likely break even including HOAs. I live in Colorado so can't really afford anything near a ski mountain but NE is still pretty reasonable.
Just hold onto it a few years and with Bidenflation you should still be able to buy a few loaves of bread.
GOPrunnerboi wrote: Depressing. With real inflation close to 20% (name one major expense item that only went up 7% this year. I'll wait), the only options are to keep cash in an high savings account earning *checks notes* .5%. Putting in stock market is a gamble since we are in bear market terrority. Really loving the Biden economy.
I was planning to buy a home for my growing family (kids ages 4 and 2) around this time, and so the past 3 years have been saving for a down payment outside of normal retirement savings. Have 250k plus saved for a down payment which I have in cash currently as I didn't want to experience a 2020 type crash that prohibits me from entering into the housing market.
Now the housing market is too heated and I'm losing bidding wars. Not sure when or if I should even enter this insane market (trying to buy in Westchester county ny or Fairfield county ct). Inflation is 7% but seems much much higher (feels like 20% honestly). Stock market is heading into bear market levels soon with the Russia sell offs.
What do I do with this cash? Bonds? Gold? Bitcoin? How do I fight inflation while also being liquid enough to enter the housing market when the time is right?
Feels like my only options are
1. Put this in the stock market and risk the market continuing to slide which limits my ability to buy a home.
2. Keep in cash and watch it devalue quickly every month
3. Buy a home right now at the absolute peak
$250K?
Just hold onto it a few years and with Bidenflation you should still be able to buy a few loaves of bread.
First and foremost, dont listen to anyone who uses the word Bidenflation. Sure to be a antivaxxer trumpster. Cant possibly possess any common sense.
Every human should have cash on hand or at least something extremely liquid. I would say thats extra true right at this specific moment with WW3/supply chain/ and weird market corrections going on. In my mind, ask the question in a year. It would also be nice to have 250k cash or liquid when the housing market crashes, if it does. I wish I had 250K back in 2006-2008. But at this very moment? I stopped investing for just a bit. The world is nuts.
Just hold onto it a few years and with Bidenflation you should still be able to buy a few loaves of bread.
GOPrunnerboi wrote: Depressing. With real inflation close to 20% (name one major expense item that only went up 7% this year. I'll wait), the only options are to keep cash in an high savings account earning *checks notes* .5%. Putting in stock market is a gamble since we are in bear market terrority. Really loving the Biden economy.
Do you realise that there is another 95% of the world, "not America" where these things are also impacting?
At least here we seem to work with our government even if we don't agree with their politics, in order to make the country better.
Try that sometime
Really? Why are we partisan.
This thread is talking about the current state of the US housing market. What are we supposed to talk about other than factors that affect the market? Should I be changing the subject and talking about poverty in eastern europe?
Please tell me about your country you live in and why its more stable and people "work with the government" more.
Just hold onto it a few years and with Bidenflation you should still be able to buy a few loaves of bread.
GOPrunnerboi wrote: Depressing. With real inflation close to 20% (name one major expense item that only went up 7% this year. I'll wait), the only options are to keep cash in an high savings account earning *checks notes* .5%. Putting in stock market is a gamble since we are in bear market terrority. Really loving the Biden economy.
Do you realise that there is another 95% of the world, "not America" where these things are also impacting?
At least here we seem to work with our government even if we don't agree with their politics, in order to make the country better.
Try that sometime
You’re the one insinuating partisanship. Someone doesn’t have to be partisan to have a valid critique of a leader who happens to be a member of one of the two major political parties. If I say I dislike Biden and abhor Trump, does that make me partisan for both sides? Your attitude is what creates divisiveness in this country, you have an “us versus them” mentality and attribute any criticism of your party to someone’s imagined allegiance to another party.
Just hold onto it a few years and with Bidenflation you should still be able to buy a few loaves of bread.
First and foremost, dont listen to anyone who uses the word Bidenflation. Sure to be a antivaxxer trumpster. Cant possibly possess any common sense.
Every human should have cash on hand or at least something extremely liquid. I would say thats extra true right at this specific moment with WW3/supply chain/ and weird market corrections going on. In my mind, ask the question in a year. It would also be nice to have 250k cash or liquid when the housing market crashes, if it does. I wish I had 250K back in 2006-2008. But at this very moment? I stopped investing for just a bit. The world is nuts.
Biden and his party have:
1. Encouraged and mandated stay at home orders and shutting down of businesses during COVID causing massive supply chain issues and requiring extensions of direct payments to americans since they can't work. All of this fueled high inflation. Had we not freaked the phuck out over Covid and not shut down the economy so hard this wouldn't have been as bad.
2. Shut down the keystone pipeline, enacted a strong policy against domestic oil production in order to appease climate activists despite the fact this country is not ready yet for 300 million people to drive and charge a personal electric car that costs 50k on average. This fueled higher gas prices during this current crisis which we could have been more prepared to handle.
3. Biden does not control the FED but its no secret he has a preference for easy money policies. So did Trump and I blame his just as much
4. Despite all this, Biden is still trying to ram a 2.2 trillion dollar spending bill down our throats, much of which will be financed by more magically created money that doesn't even exist yet
Had he actually acted like he cared about stopping inflation, I'd agree with you, but Biden has simply done the absolute worst actions possible to stop it.
You invest in short term six to twelve month CDs if you’re concerned about your $250k being eroded by inflation, although a one year CD would barely yield 1 percent but better than cash. If you’re laser focused on buying a house soon (those are two obscenely expensive counties, I grew up in Fairfield county) then I wouldn’t put any more than like 10-20 percent of that cash into stocks and if you do, invest in dividend payers/growers. Last thing you want is for you to lose a substantial part of that nest egg.
First and foremost, dont listen to anyone who uses the word Bidenflation. Sure to be a antivaxxer trumpster. Cant possibly possess any common sense.
Every human should have cash on hand or at least something extremely liquid. I would say thats extra true right at this specific moment with WW3/supply chain/ and weird market corrections going on. In my mind, ask the question in a year. It would also be nice to have 250k cash or liquid when the housing market crashes, if it does. I wish I had 250K back in 2006-2008. But at this very moment? I stopped investing for just a bit. The world is nuts.
Biden and his party have:
1. Encouraged and mandated stay at home orders and shutting down of businesses during COVID causing massive supply chain issues and requiring extensions of direct payments to americans since they can't work. All of this fueled high inflation. Had we not freaked the phuck out over Covid and not shut down the economy so hard this wouldn't have been as bad.
2. Shut down the keystone pipeline, enacted a strong policy against domestic oil production in order to appease climate activists despite the fact this country is not ready yet for 300 million people to drive and charge a personal electric car that costs 50k on average. This fueled higher gas prices during this current crisis which we could have been more prepared to handle.
3. Biden does not control the FED but its no secret he has a preference for easy money policies. So did Trump and I blame his just as much
4. Despite all this, Biden is still trying to ram a 2.2 trillion dollar spending bill down our throats, much of which will be financed by more magically created money that doesn't even exist yet
Had he actually acted like he cared about stopping inflation, I'd agree with you, but Biden has simply done the absolute worst actions possible to stop it.
Park it in a short term bonds, the next time real estate dives, buy up a couple rental properties at the bottom. Then enjoy the rental income, and sell when you can take good profits. Be patient.
First and foremost, dont listen to anyone who uses the word Bidenflation. Sure to be a antivaxxer trumpster. Cant possibly possess any common sense.
Every human should have cash on hand or at least something extremely liquid. I would say thats extra true right at this specific moment with WW3/supply chain/ and weird market corrections going on. In my mind, ask the question in a year. It would also be nice to have 250k cash or liquid when the housing market crashes, if it does. I wish I had 250K back in 2006-2008. But at this very moment? I stopped investing for just a bit. The world is nuts.
Biden and his party have:
1. Encouraged and mandated stay at home orders and shutting down of businesses during COVID causing massive supply chain issues and requiring extensions of direct payments to americans since they can't work. All of this fueled high inflation. Had we not freaked the phuck out over Covid and not shut down the economy so hard this wouldn't have been as bad.
2. Shut down the keystone pipeline, enacted a strong policy against domestic oil production in order to appease climate activists despite the fact this country is not ready yet for 300 million people to drive and charge a personal electric car that costs 50k on average. This fueled higher gas prices during this current crisis which we could have been more prepared to handle.
3. Biden does not control the FED but its no secret he has a preference for easy money policies. So did Trump and I blame his just as much
4. Despite all this, Biden is still trying to ram a 2.2 trillion dollar spending bill down our throats, much of which will be financed by more magically created money that doesn't even exist yet
Had he actually acted like he cared about stopping inflation, I'd agree with you, but Biden has simply done the absolute worst actions possible to stop it.
If you can hold for at least a year put it in series I savings bonds. Risk free ~3-5% return AFTER early withdrawal fees (assuming you sell after a year and don’t hold for entire 5 year term - but you must hold for 1 year minimum). Pegged to inflation so once they reassess the rate in April (they reassess every 6 months) it could be even greater than my 3-5% 1 year post-fee return estimate. The current rate is over 7% which is guaranteed for 6 months regardless of purchase date. You can put 10k and then an extra 5k from federal tax return per year. Perfect situation would have been to drop 10k in December and another 10k in January but I’d still say it’s still an excellent, unbeatable risk free play in this market environment.
If you can hold for at least a year put it in series I savings bonds. Risk free ~3-5% return AFTER early withdrawal fees (assuming you sell after a year and don’t hold for entire 5 year term - but you must hold for 1 year minimum). Pegged to inflation so once they reassess the rate in April (they reassess every 6 months) it could be even greater than my 3-5% 1 year post-fee return estimate. The current rate is over 7% which is guaranteed for 6 months regardless of purchase date. You can put 10k and then an extra 5k from federal tax return per year. Perfect situation would have been to drop 10k in December and another 10k in January but I’d still say it’s still an excellent, unbeatable risk free play in this market environment.
Forgot to mention it is per family member - so you can actually buy 10k for your wife, and 10k for each of your kids. Honestly, I’d do this if I were you if you don’t plan on buying a house in the next 12 months since it is not liquid until after a year. But it is 100% risk free assuming the US government doesn’t default.