[Leanna]

Slowly saving for a house down payment (or more hopefully, a fixer upper abroad!) in the next 3-5 years.

Where should we park it to maximize our funds? HYSA? Brokerage? I-bonds?

Open to other ideas!

[AJ Hu]

It sounds like your funds will want to be in capital preservation mode while you are saving up for the house in the next 3-5 years. If it were for a long term investment, then placing them in higher volatility investments, such as stocks, would be okay. While there will be ups and down, the investments trend upwards in the long run.

Short term, however, investments can see a lot of ups and downs, so it is not possible to know where your investments could be in the short term.

[Cody]

Not a recommendation, but you may want to research bond ladder funds such as iShares iBonds. With a 3-5 year time horizon, I’d be expecting ~5% annual yield and trying to avoid interest rate risk. *These are not the same as Treasury I Bonds.

[Author]

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