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

da_jokker

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Sorry but I differ. Had you invested just 6 months ago you could easily have been up 30%.

But I totally get it.... I was conflicted as well... even had posted it on this forum. What I ended up doing was a partial investment. You won't lose money, you may just not be able to sale at the time you get your Bronco (but that's months if not a year out).

For me, I played with some numbers and determined that I could swing an additional 10k on my loan If I had to. So I took that 10k, put it back into the market and so we'll see. So far I'm up 15% in just over a month. Should at least pay for some options ;)

(And remember, if you stick to ETFs, you can always do a stop loss)
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Fly by Nite

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Online savings account or a cd will only yield about 0.5%.
There are a few other no/low-risk options....

Check with your local credit unions and you may get a better rate on a savings, checking or cd.

There are new account bonuses out there that will pay a few hundred bucks. Only drawback is you need to meet all the terms, which can be a simple amount/time requirement, or a more pita process requiring direct deposits and required withdrawals. It can be a low risk way to make a few hundred bucks over the next couple months.
https://www.bankrate.com/banking/best-bank-account-bonuses/

A little more risk and potential for higher returns would be bonds.
More risk and potential for even higher returns would be stocks. I like the broad market etf's which have a sampling of the whole market. Great long term returns, but poor timing can hurt:
Ford Bronco Delays delays... what should I do with my down payment? 1610561940841
 

Charky

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As some of the folks above have shown, and in my own experience, it may make more financial sense to not completely pay cash for your Bronco. If you can get a lower APR car loan, you'll make money by leaving the bulk of your funds in a higher return option. Of course, some would prefer the feeling of not having a monthly payment and will just pay it off at purchase if they can afford to. Whatever makes you sleep better!
 

doink

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Yolo $TSLA calls!

Depending on time frame you could set up a CD ladder.
But. May be too long term of a solution for you.

As other folks have said a savings account is most conservative. I’d look into a high yield savings.

I have one with ally. Rates are down now but we’re solid prior to COVID
 

Heffe66413

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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.
Your best bet is to put it into an ameritrade account, buy as many DIA stock as you can( it is an index fund that tracks the Dow Jones) and resist any notion of trading in and out u til you are ready to buy.
 

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da_jokker

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With all this allocation news, I may wait a bit to get a better idea when my Bronco will be built, but I may stick my funds back into something like VOO/VTI since I'm looking at probably 18 months from now.
 

BD1

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On the investment topic generally (Not the OP down payment question)....for any of you DIY investors here is a great online course on how to build a good long-term portfolio that outperforms the market and does not experience the large market drops. I did this a few years ago and it has helped me immensely. I have nothing to do with this site other than recommend it for anyone doing their own investment decisions. This is just online training (and a community you join) for a one-time fee:

https://tradingdominion.thinkific.com/courses/long-term-investing
 
 


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