Investor · Atlanta · Member since 2019 · 597 posts · 99 votes
hi, I am saving some money for next rental down payment in vanguard voo. I heard Qqq, vug, vgt,soxx better with last decade of return performance. Where you save down payment money for better faster , safer returns . What are pros cons of each. Please advise
I personally think it's dangerous to "save" money in VOO. That's another investment. The reason it's dangerous is that it can collapse and you will lose 10-20% of it. VOO essentially follows S&P 500 and 20 to 30% of it's worth is coming from AI stocks. Current environment is very uncertain and there are many people out there who think the AI bubble might pop. I think the best instrument to save is Vangurad's Money Market Fund (or any other money market fund).
@Gp G. Honestly, "better, faster, and safer" don't usually come in the same package. Those funds had great last-decade returns because they took on more risk, and tech just had an unusually good run.
The big question is when you're buying. If it's within a few years, I'd keep the down payment out of stocks, since tech funds have dropped around a third in bad years and you can't wait out a recovery with a closing date.
For comparison, VOO is the most diversified. QQQ and VUG lean on a handful of big tech names, and VGT and SOXX are the most concentrated and volatile.
For short-term money, a high-yield savings account, money market fund, T-bills, or CDs are lower return but way more stable. If you're 5+ years out, VOO makes more sense.
Not financial advice, just how I'd think about it, so run it by an advisor who knows your situation. Good luck!
What is best place to keep down payment money like 60k as I keep saving. Normal bank checking or saving only give 0.01% which I do not like to use. If I keep in fixed cd etc it get struck for 1 year etc. Please advise
