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Here’s the advice: don’t. You can’t possibly have the resources or time to do this successfully. People who win temporarily rarely win in the long term. Don’t confuse luck with skill. Skill is proved over time
8% is closer to an”safe” 20 year return. 5 year low risk rates more like 3-4% right now
The words short term and invest should never be next each other.
Citadel/RenTech/DRW/Jane Street/Goldman/MS/DE Shaw/AQR/Two Sigma/etc all have teams of PhDs looking to find every edge but you'll find the edge they didn't see...
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Our ESPP
After ESPP, then simple index funds through TDAmeritrade or Fidelity. They and some others offer commission free trades for ETFs.
Don't use mutual funds as the tax hits each year are not under your control.
5 years is not short term. This is investing.
When people read short term they often think trading. You aren't going to trade, you are investing.
SPY and ACWI would be two finds to look at. The first is the 500 largest USA companies. ACWI is the All Country World Index which gives global exposure.
Good point on taxes. Few people realize that the cost basis within the fund for tax purposes does not reflect your cost basis. ETFs don't have this problem.
And the annual Capital Gains taxes ate horrible for returns.
Better to sell quickly or better to hold to avoid this?
Better to use ETFs instead of mutual funds and then there is no issue. There are really no reasons to use mutual funds any more.