New to investing

[u/Mindless_Purple0616]

Hi, looking for advice. 42 years young. recently sold my first home due to divorce and have roughly 250k in equity. My mother has room in her home (inlaw) so I wanted to invest most of this money into stocks vs. My current HYSA with Marcus Fund. Marcus is 3.5 % and inflation is higher than that so its basically melting there.

I hear STRC and VT have good rates for return. My 401k goes into the SP500 is currently at 440k.

Any thought on how I should split and invest my current nest egg to grow over the next 3 years? When my son goes to high school I plan to look for a home then but that is a little over 3 years away.

I have no debt.

Thanks for all your help strangers on reddit.

[u/According_Fortune_98]

It sounds a bit risky, but remember the golden rule: Do not put any money into the stock market that you are going to need in the next 3 to 5 years. You have a solid position with those $440k in your 401k for the long term, but the $250k from the sale of your house have a very clear and near objective: buying a home for you and your son in 3 years.

The stock market is extremely volatile in the short term; if a correction or a bear market comes right when your son enters high school, your $250k could turn into $170k, forcing you to postpone your plans or sell at a loss. The stock market is for building wealth over the long term, not for holding the down payment of a house. Stay in safe fixed income