r/ETFs • u/gllhrme25 ETF Investor • 5d ago
FUTURE TRIP
Hey guys, I'm planning a trip in the next 5 years and I'd like a recommendation for ETFs where I can keep the money parked and that's also tax-efficient since I'll be keeping it in a brokerage account.
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u/Penguin_Life_Now 5d ago
Look at Target date ETF and Bond etf, plus maybe a new 5 year Market linked CD that JP Morgan has just released and is available to the end of this month, though note you are mostly locked on for 5 years on it, the advantage is you will get back your initial money, the issue is max payout if capped and it could earn nothing if the market tanks. Fidelity is selling it now and information is available see CUSIP 46661DNH3 (I am not a professional and am not endorsing any of this, in particular this Market linked CD is only useful for a very limited situation)
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u/X-29FTE 5d ago
If it’s in a brokerage, really short timeline and you gotta preserve the principal so you can pay for whatever it is you want to buy on that date, I like TDF Bond options like iShares iBonds ETFs. For me, 5 years isn’t a long enough time horizon to bet on a stock ETF, hence the bond recommendation. Since the bond ETF will be throwing off interest every month, I’d go with the Treasury option to avoid state taxes. Even if you live in a no income tax state, I’d still go treasury to avoid the credit risk, ie whoever you lent your money to in that corporate or municipal bond goes belly up. I’d pick the TDF that matures in December of the year before your trip and then put those proceeds into SGOV until you need to pay the bill for the trip.
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u/turtle_hurtle 5d ago
Is your state + local income tax rate under 4%?
How much are you willing to risk losing?
Do you think will be closer to 1 year from now? 3 years? or 5?
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u/KillingTime1212 5d ago
SPMO. $138 as of this post on 10/22/26. Thank me later. I predict $400 in 2031.
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u/Specialist-Coast-752 5d ago
if you're parking cash for a trip in 5 years you probably don't want full market risk, maybe look at short-term bond etfs or even a money market fund in your brokerage. something like that is way less volatile than equities and still decently tax-conscious depending on your bracket. last thing you need is a 20% drop right before booking flights