Share on
HTML EMBED
Click to Copy
Make Me Smart with Kai and Molly

Episode 114: Antitrust the process

May 21, 2019

Latest Episodes

Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Marketplace Tech
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Share on
HTML EMBED
Click to Copy
Marketplace Morning Report
Share on
HTML EMBED
Click to Copy
Ask Money

A Wedding and a Mortgage

Chris Farrell May 28, 2008
Share Now on:

Question: Hi Marketplace, I’ve got a couple good things going for me right now. I just got a new job that pays a lot more than my old one, and I’m about to get married. Instead of having a regular registry for pots and pans, we’re asking our guests for donations towards our “Mortgage Fund” to try to put a down payment on a place to live. Now, we’re not quite ready to get a house…but we’re thinking within the next year or so we’d start looking (pending, of course, what the market does).

My question is this: what’s the best way to “park” our money for a year while we wait to buy a house? Is there a “Mortgage-specific” type of savings account that might yield a better return than a CD? Thanks for your time, Iseri, Chicago, IL

Answer: Congratulations on all the good things happening to you. I wonder if your idea is a sign of the times? A lesson of the housing boom and subsequent bust is that first-time homebuyers should buy themselves a margin of safety by putting in a greater downpayment than was necessary during the go-go years. It’s an intriguing idea.

Yields are razor thin these days. But I wouldn’t reach for yield with this “home” money. (For a harsh lesson on the cost of reaching for yield just look at the busted auction rate market. The stuff was marketing as safe, but higher yielding short-term debt, and now investors can’t get their money out.). I would stick with a brand-name money market mutual fund with very low fees and no charges for putting the initial investment in and adding sums later into the fund. I would pick a conservative money market mutual fund option, one that invests heavily in U.S. Treasury bills, short-term federal agency debt, and blue-chop commercial paper.

Good luck.

How We Survive
How We Survive
Climate change is here. Experts say we need to adapt. This series explores the role of technology in helping humanity weather the changes ahead.