1750: Where Should I Invest My Short-Term 'Stash by Mr. Money Mustache on Investing in Bonds & Money Market Accounts

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Business, Education, Self-improvement

4.4 • 1.3K Ratings

🗓️ 24 December 2021

⏱️ 11 minutes

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Summary

Mr. Money Mustache shares his opinions and strategies for investing short-term cash. Episode 1750: Where Should I Invest My Short-Term 'Stash by Mr. Money Mustache on Investing in Bonds & Money Market Accounts Mr. Money Mustache is a thirty-something retiree who now writes about how we can all live a frugal, yet awesome, life of leisure. He and his wife studied engineering and computer science in Canada, then worked in standard tech-industry cubicle jobs in various locations throughout the late ’90s and early 2000s. Then they retired from real work way back in 2005 in order to start a family. This was achieved not through luck or amazing skill, but simply by living a lifestyle about 50% less expensive than most of their peers and investing the surplus in very boring conservative Vanguard index funds and a rental house or two. The original post is located here: http://www.mrmoneymustache.com/2011/06/07/where-should-i-invest-my-short-term-stash Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

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0:00.0	Have you ever noticed how a calm mind can really set the stage for a good night's sleep?
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0:35.2	app and be sure to pick the one from Optimal Living Daily. This is Optimal Finance Daily,
0:41.8	Episode 1750. Where should I invest my short-term stash by MrMoneyMustash of MrMoneyMustash.com?
0:50.8	And I'm your host and personal finance enthusiast, Diana Merriam. Now let's get right to today's
0:56.7	post as we optimize your life. Where should I invest my short-term stash by MrMoneyMustash of MrMoneyMustash.com?
1:10.8	So we've established that while long-term stock market returns have been quite predictable
1:16.1	for over 100 years, with an after-inflation return of over 7% per year,
1:22.0	we've also noticed that they fly up and down in an absurdly random manner in the short-term.
1:28.4	And the short-term can actually mean periods of up to 15 years.
1:32.8	So for long-term savings like the money you're saving in 401K's, Roth IRA's,
1:38.7	Canadian RRSP's and such, stocks are still the best balance of large long-term gains versus risk.
1:47.5	You'll see some alarming swings if you check the stock prices every day.
1:52.0	But if you just open up your statement on the day you turn 59.5 to start your withdrawals,
1:58.4	you'll probably be pleasantly surprised. What about money you need for more immediate needs?
2:05.2	Say you're saving for a house-down payment that will take two years to accrue,
2:09.4	or you receive the gift from your grandma to pay for your college education,
2:13.2	but you won't even be graduating from high school for three years.
	...

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