I think what you do with the money you are saving really depends on your tolerance for risk. If you want to ensure that most, if not all, of your initial investment is still around in 4 years (i.e., available to pay for the inevitable repairs), I wouldn't be comfortable investing in stocks. Especially given that we have been in a bull market for past 6 years and indexes are at record highs.
Now if you were investing for the long term (20+), I'd agree that you'd likely make money in the stock market. (But I'm kind of a wimp when it comes to investing.) Making money in the stock market is easy when the markets are going up; it is much trickier when the markets are declining. Remember: Bulls make money. Bears make money. Pigs get slaughtered.
Quote:
Originally Posted by DantonIzzo
This. Take 3k and put it into a mid-yield fund (think fidelity/t rowe price lifestyle funds) and let it park there for 4 years until your initial factory warranty runs up. Then just keep it in there until there is a majory repair. Assuming you get 6% return (which is very probable), I'd bet your come out on top.
|