I ordered a new work truck but it won’t be here for approximately 6 months. I have 26k to put down on it currently but wondering if I can put it somewhere to build interest in the meantime. (Okay with moderate risk) I am planning on financing the rest till I get everything swapped over from my current work truck and then once the old work truck is sold, I should be able to pay off the new work truck. Also considering putting it in the stock market? Looking for advice on where to put it
Edit: I understand investing for only 6 months is risky and I may lose a chunk, hence I don’t mind the risk
online HYSAs are paying about 0.5% right now. you might be able to find one with some sort of sign up bonus, just make sure to read the fine print.
A 6-month time frame to invest in the stock market is pretty much gambling on what will happen where you’re just as likely to have $20K at the end of that period as you are to have $28K. So if you’re willing to lose several thousand dollars on the coin flip chance that you make a few thousand, go for it!
Me? I’d put this in a HYSA.
Mutual funds are considered moderate risk. I would definitely have some extra in case you lose a couple grand though.
Look into I-Bonds. You can put 10k there, and I understand they’re earning somewhere around 7% at the moment. I think you can pull out in the 6 months timeframe.
A traditional index fund may gain, may lose. There are bond mutual funds as well. It may gain and may lose, but it’s less volatile than a traditional mutual fund.
I think your best bet is to split between HYSA and maybe I-Bonds.
I wouldn’t invest that money unless you are okay with the prospect of losing 15% or more within those six months.
I figured that, it wouldn’t be the end of the world if I lost 15% I would just be nice if it built up 15%