What to do with my money?!

[spacepirate]

Hey guys,

I've seen the investing thread and wanted to ask a couple questions. I'm saving for a down payment for a home within the next year or so in the Socal area. The goal is somewhere around the 40k range and I currently have 20k saved. Right now the money is just sitting in the bank and I feel I should do something better with it. Does anyone have any suggestions?

[sik68]

I'm no GW, but if it's money you need within a year, it's too risky to invest it in anything that could give you a meaningful return. Keep it in the savings acct imho.

[John510]

Save it in a credit union acct. Don't invest money you need soon.

[spacepirate]

Yeah, that's basically what I'm thinking but wanted to ask others. Maybe GW witll chime in!! :unibrow: :unibrow:

[Rybar]

GW wont really have a solution for you to double your money in one year, unless you take some risks with it. That's not what he preaches.

[spacepirate]

Yeah I'm not looking to "double" my money so much as just thinking of a better way to make it work for me instead of just sitting in my savings.

[bdahlg68]

The question is how soon before you buy a house... You need to save $20k more for the down payment. If you are looking at LESS than one year, not a big deal either way. Even if you make 10% in that time, it's $2k or about 1 months savings at that pace. Kind of the same if you end up down a couple of percent.

If you are looking at more like 2 years, get it invested now and keep investing. Too much uncertainty to sit and wait. What happens if interest rates go up in the meantime? What if prices go up and the house you want now needs a $50k down payment? The farther out you look, the more uncertainty.. other than investing will get you a return on your money.