Delays delays... what should I do with my down payment?

[pony2bronco]

Wondering if any financial guys have any advice on this. I planned on putting ~35-40k or so down on the Bronco when the initial release dates sounded like this summer. Now it's looking like my week 2 reservation will most likely be a '22 and I feel like I shouldn't just be sitting on the money. I've thought about CD's etc, but did the math and I would barely make pocket change with banking products... on the other hand dropping it all into an index fund during all this political chaos could end up with me losing a good chunk of it. I have absolutely no clue what to do other than keep sitting on it. Any thoughts?

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[JAC]

While you already state a CD would be pennies.... It would still be better than leaving in a savings account. I like the idea of investing it, however, as you have a specific use planned and (kinda known) timeframe, I'd keep it out of the market. Too risky, and I have a high risk tolerance for most of my investments. Secondary thought... lets say you did invest and it went great - increased in value, then your bronco arrives in (any time frame <12 months) you now have short term gains to deal with at tax time. Just my thoughts..... keep it safe and reserved for what you intend to use - large down payment. Cheers.

 

[ssolypop]

Wondering if any financial guys have any advice on this. I planned on putting ~35-40k or so down on the Bronco when the initial release dates sounded like this summer. Now it's looking like my week 2 reservation will most likely be a '22 and I feel like I shouldn't just be sitting on the money. I've thought about CD's etc, but did the math and I would barely make pocket change with banking products... on the other hand dropping it all into an index fund during all this political chaos could end up with me losing a good chunk of it. I have absolutely no clue what to do other than keep sitting on it. Any thoughts?

Leave it in savings and enjoy and sleep sound at night knowing that you got a fully paid Bronco sitting in the bank. Add to it if you can. Stay away from the market, it's too volatile and you are not likely to make enough to make the stress worth while.

 

[pony2bronco]

You guys both echo'd my thoughts, I kinda figured as much... just wanted some reinforcement that I'm not being an idiot haha. Guess the plan is keep it fluid and pay all cash at this point.

 

[amccue90]

put it all on black

 

[Razorbak86]

Buy one Bitcoin and secure your retirement.

Just my two satoshis.

 

[RotorOver]

Capital preservation should be your goal. Your instincts are right.

 

[Mattwings]

You guys both echo'd my thoughts, I kinda figured as much... just wanted some reinforcement that I'm not being an idiot haha. Guess the plan is keep it fluid and pay all cash at this point.

Yep, time horizon is to short. CD is fine. Make a few $ and it’s safe. Watch the maturity dates. Just my opinion ?

 

[wvmtneer]

It was a good day to buy.

 

[AU98]

I heard there was a Nigerian Prince that needs your help.

 

[Bemcnamara]

Look into a High Yield Savings account. A lot less restrictions than a CD.

 

[rtaylor]

I've thought about CD's etc, but did the math and I would barely make pocket change with banking products... on the other hand dropping it all into an index fund during all this political chaos could end up with me losing a good chunk of it. I have absolutely no clue what to do other than keep sitting on it. Any thoughts?

Big no on stock market for short term investment, but if you can accept some risk you could consider worthy bonds at fixed 5% return and unrestricted withdrawal. Guaranteed rate, but not FDIC insured.

CDs are a waste of time. Ally is my favorite online savings, but only 0.5%. VIO Bank is 0.57% but their website is poor. FDIC insured, but you are guaranteed to lose money due to inflation.

 

[mdonathan56]

Best 6-month CD rates - January 2021 | Bankrate

 

[JessD05]

I second the hy-savings for low risk tolerance option. They’re practically the same apy% as CDs in the current market and won’t withhold your money from you. But they can adjust the rates at anytime.
CD/HYS rates have dropped since Covid.
~0.5%yield @$35k for 12 months = $175

https://www.bankrate.com/banking/savings/rates/

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