Sally, a 30-year-old with $100,000 saved, is contemplating whether to use her savings as a down payment on a house she rents with her partner or to wait. Experts advise against purchasing a property with a partner without legal ties, as this complicates asset ownership in case of a breakup. Instead, they suggest that she invest her savings wisely; short-term in a high yield savings account, and longer-term in an S&P 500 index fund for automatic diversification.
Short-term savings should go into a high yield savings account.
Beginning investors should choose the automatic diversification of an S&P 500 index fund, and leave individual stock investing for later.
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