a few minor ones.
1. You'll have to pay federal taxes on the interest. If in a high tax bracket consider one of the cheap muni money market funds.
2. You're forgoing for returns that are more than the interest paid (e.g. capital gains), such as with bonds or stocks. But I imagine for money to build a house in the near future, losing money is much worse than the possibility of earning more than interest on a MM fund.
1. You'll have to pay federal taxes on the interest. If in a high tax bracket consider one of the cheap muni money market funds.
2. You're forgoing for returns that are more than the interest paid (e.g. capital gains), such as with bonds or stocks. But I imagine for money to build a house in the near future, losing money is much worse than the possibility of earning more than interest on a MM fund.
Statistics: Posted by alec — Sat Jan 25, 2025 7:01 pm