So the short and sweet of it is, I’ll be getting a raise from $40/hr to $56/hr around this fall and my partner makes $25/hr. This will bring our net after all taxes and budgeted expenses to around $6500/month. Using $4500 for investing and $2000 for emergency fund.
My question is where I should put this extra money if I’m looking to buy a house shortly after the bump. My thoughts are that I could do a bond ladder, acquire CDs, leave in a HYSA, or l buy vt, vti, and bnd.
Now I personally like the bond ladder, starting with 2 months 50%, 1 year 25% and 25% 20 years. My reasoning is by doing this I can capitalize on any Fed capitulation with the 20 year, while also retaining a majority of my capital for when I want to buy a house. I’d be rolling the 2 months until I get close to buying, which i hope is around the 1 year mark.
If anyone has any opinions on this please let me know and critique my strategy. I wouldn’t be opposed to any of the other strategies however, I’d like a bit of convincing on why the risks may out way the safety of guaranteed returns (that I personally think are quite high) in bonds.
Thanks y’all