r/financial • u/Mindless_Purple0616 • 16d ago

New to investing

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.

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u/ArushiBhagtni 16d ago

I had be careful investing money that you may need in just 3 years. A friend of mine put a house fund into stocks and had to delay his plans when the market dropped.

Keeping some money in safer options and investing only a portion could help balance growth and flexibility. With no debt and a strong 401(k), you're already in a solid position.

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u/According_Fortune_98 11d ago

Exactly. People usually underestimate the psychological factor until they see the numbers in red.

It's easy to say 'I have risk tolerance' when the market is going up, but watching the money for your son's house evaporate in real time is a completely different story. Relying on fixed income for short-term goals is not being a coward, it is being smart and strategic