this post was submitted on 25 Sep 2024
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TDF for house down payment (lemmy.world)
submitted 1 month ago* (last edited 1 month ago) by [email protected] to c/[email protected]
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Is a TDF a good choice for growing my money, in this case? I plan to use it for a house down payment and withdraw it in 5-7 years. I've been thinking of putting it in a 2030 or 2035 TDF. Should I go this route or just VTSAX and chill?

Background: USA, I will be saving in a taxable account, and I want to minimize my tax liability as much as possible.

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[–] [email protected] 6 points 1 month ago (1 children)

Any stock based investment is more risky for short-term saving as there is no guarantees of returns and potential drops in value. For long term savings, the dips can be waited out and on average have historically gotten good return over the long run. For shorter term savings you could consider fixed income like CDs. While the rates are lower, they are guaranteed so you will have your money when you need it

[–] [email protected] 1 points 1 month ago

Thank you. My idea is to grow the funds and move them to CD/HYSA when I start looking. I don't plan to stay in my current city longer than 10 years, and for that time frame renting is more economical.