HOMES AND MORTGAGES
Bank or invest for 4 years
Hi all. I plan to invest monthly, long term - for the next 30 or 40 years. However we are planning to buy property in 3 years when we get citizenship. I have a deposit of $150 000 sitting in a bank account attracting 5% interest monthly. I will need that money when we do buy property so I guess my question is - do I let it sit there for 3 years or invest some of it and cash out (with fingers crossed) when we need it for a house deposit? In the meantime I will start investing smaller amounts every month. Beginner investor here just trying to maximise my time (I'm 41) Thank you x
Bronwyn null.
29 November 2024
1 Comments
12 days ago
Hi Bronwyn,
Personally I don’t think it’s a great idea to invest money in the market for a timeframe or less than 5 years. So 3 years doesn’t pass the test for me.
Especially when, as you’ve pointed out, the money is actually needed during that timeframe. It would be frustrating and potentially heartbreaking to have the market fall when you need the money most, just for some extra upside.
Others may see it differently, but I don’t think it’s worth it in scenarios like that, especially when high interest savings accounts are paying decent rates.
All the best
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