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Three to Five Year Money? Where do you stash?
Old 01-19-2020, 10:01 AM   #1
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Three to Five Year Money? Where do you stash?

Where do you stash money for interim needs? not immediate, but not long term in the equity market? For example, money to be used 3-5 years from now?
CDs?

thanks
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Old 01-19-2020, 10:02 AM   #2
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3.8% CDs - That is our average. Invested early 2019.
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Old 01-19-2020, 10:11 AM   #3
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We only keep one year in an on line bank HISA. We draw down to our current account as needed.
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Old 01-19-2020, 10:20 AM   #4
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If you are definitely going to need that money in 3-5 years, then a CD ladder or MM fund or online savings account or a combination thereof are the way to go IMO.
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Old 01-19-2020, 10:21 AM   #5
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TIPS
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Old 01-20-2020, 10:29 PM   #6
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vanguard limited term municipal bond fund
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Old 01-20-2020, 10:36 PM   #7
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Money market funds, CDs, T bills, defined term bond funds (IBDO which matures in 2023, for example). With rates down as far as they are, some of this sort of money will be headed to merger arbitrage funds (MERFX, for example).
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Old 01-20-2020, 10:39 PM   #8
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Stable value fund in 401k
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Old 01-20-2020, 11:11 PM   #9
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Like others here, CDs, MM, TIPS. Not expecting to increase the funds much that I've earmarked as 3-5 year use. I do want to preserve their purchasing power and keep the balances in these accts. stable so we have no financial crunches in the event of a prolonged downturn. I've found CDs, MM and treasuries are my best options for this purpose.
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Old 01-21-2020, 07:16 AM   #10
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Ours are in high yield savings/MM and CDs. We can also use the Stable Value fund in our 401K. The MM/CD cash is meant to be spent down without worrying about any impact from market gyrations timing.
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Old 01-21-2020, 07:55 AM   #11
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I treat all of our money is treated the same. We do not subscribe to the bucket strategy. Being as we are >65 and retired, any money from our Roth is tax free and grows (or loses). We feel that our expenses are low enough and we have enough in the Roth ( and other retirement accounts if necessary) to ride thru any anticipated downturn of the markets. Truth be told, we do have a little in savings locally but not for any near future expenses or any other particular reason.

Granted, this method is not for the faint of heart.
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Old 01-21-2020, 07:57 AM   #12
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TIAA Traditional. The average return of all the vintages is about 3.6%.
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Old 01-21-2020, 08:01 AM   #13
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C/D Ladder five years out and a year immediate needs (if needed) in a local B&M bank.
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Old 01-21-2020, 08:15 AM   #14
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4 years of expenses laddered CDs and Money Market plus 1 year of expenses in Bond fund.
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Old 01-21-2020, 08:58 AM   #15
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We have a few places. First, a MM account within our bank that is easily transferred. We keep $60K or so there. Still have income from DH consulting that brings after tax ~ 35K into that MM. I bonds and EE bond that are available outside our VG portfolio, had those since 90's. The question is do we start back door Roth contributions and take tIRA distributions and leave those bonds alone while tax is favorable.
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Old 01-21-2020, 02:30 PM   #16
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Half in corporate target date bond funds, rest in CDs/bonds and regular bond funds.
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Old 01-21-2020, 02:57 PM   #17
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If you follow a bucket strategy, the 3-5 year span falls into bucket 2 which should be filled with quality income producing investments. Some risk, but not considered aggressive. Nor too little risk like short term CD's or money markets.
Examples are bonds, longer term CD's, REITs, BDCs, preferreds, low volatility dividend payers/ETFs and some select closed end bond funds.
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Old 01-21-2020, 03:42 PM   #18
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MM and laddered CDs for me. This is pretty recent that I keep this much in cash, but it's part of a plan to give me cash flow and avoid cap gains sales until I hit 65 and am no longer managing income for the ACA subsidy.
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