[Seth]

I would like to start saving for a home, time frame is about 2-3 years. Best place to put that saving is in a HYSA?

Is a high-yield savings account (HYSA) the best option for short-term goals like this, or are there better alternatives to consider?

I’d love to hear your recommendations!”

[Rick]

The biggest gotcha is when 2-3 years becomes 4-5 becomes 6-7. The returns missed could be significant.

So set reminders every 6 months and have an extremely honest appraisal of your future.

As soon as you feel in the slightest that the time frame is moving out, put 25% into something like VTI. Then again next checkin.

You can always rotate out when plans get more concrete but you cannot get years of market returns out of hindsight regret.

[Mark]

Hysa, mmf, t bills, cds. All yields will be about the same. T bills are exempt from state and local taxes

[Christopher]

HYSA, money market, or treasuries if the rates make sense. That short of a timeframe is too small to take on riskier investments unless you’re willing to risk losing value.

[Author]

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