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For many, deciding to purchase a house or invest in the stock market is a pivotal crossroads, and hoarding cash in a high-yield savings account can feel safe, especially when aiming to own a house one day.

But as savings grow, so does the pressure to make that money work harder, so stocks often become an attractive alternative to having the money buried in a property.

Yet, the fear of market volatility and uncertainty of when and in what to invest often leaves individuals feeling overwhelmed, especially if they are risk-averse or struggle with balancing long-term goals like retirement with short-term ones like buying a house.

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One Reddit user, a 39-year-old single California resident earning $100,000 per year found himself at this very crossroads. With $170,000 in cash–earning 4% to 5% in a high-yield savings account–and $94,000 in various Vanguard and Fidelity accounts, the poster is torn between continuing to diligently save for a house or invest his money into the stock market to accelerate his retirement income target.

“To be honest, I am completely overwhelmed with information. I've narrowed down that Bogle is the method I like the most. I am risk-averse and like a set-it-and-forget-it style. What the heck do I invest in? Is there any way I can invest but also possibly withdraw some if the chance to buy a home comes up? (Without penalty.) Does earning my money in California hurt me in any way when it comes to withdrawing for retirement? Or does it only matter where you live when you withdraw?” he wrote.

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The Reddit r/Bogleheads community offered a mix of practical advice and reassurance, addressing the poster’s concerns and providing actionable steps. Let’s dissect the users’ suggestions below.

All-In in Stocks or Save for a House? The Reddit Community Offers Advice

Target-Date Funds and ETFs for Long-Term Investing

Several Redditors suggested the investor look into target-date funds and specific ETFs as an ideal option for his concerns.

“Purpose drives investments; if you want to set and forget for 10+ years; start by buying the S&P 500 ([Vanguard S&P 500 ETF (NYSE: VOO)] or [SPDR Portfolio S&P 500 ETF (NYSE: SPLG)] or [iShares Core S&P 500 ETF (NYSE: IVV)]) every week with your cash reserves. This would not be recommended for a goal of buying a house in 3 years,” a comment reads.

This Redditor replied to a comment written by the poster in which he asks whether the Vanguard Target Retirement 2050 Fund (NASDAQ:VFIFX) is a good target date fund to use.

“Looks good. I googled it and it’s a 2050 target date with a .08 expense ratio, which is great. The only note is it’s currently 90-10 stocks to bonds which is good/reasonable but you have to be able to handle market volatility at that level of stock allocation. You should be able to with 25 years to retirement (for reference I am 100 stocks with about 25-30 years to retirement),” the commenter advised.

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For a broader diversification, this Reddit user suggested the poster goes with Vanguard Total World Stock ETF (NYSE:VT).

“Target funds are great, and so is VT, my preferred ETF; I dabble in others though,” he said.

Push Back on Buying a House

A couple of commenters also touched on the poster’s concern regarding buying a property, suggesting that he waits and invests the sum into stocks or ETFs.

“I do have to push back that you can’t get a house even in California with a $150,000 down payment. You can’t buy in Los Angeles or San Francisco etc., but you can buy somewhere. You don’t want to resign yourself to renting for the rest of your life and you have a great start with that down payment,” one commenter said.

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This article Single Investor In California Hoarding $170K Cash Feels Overwhelmed – 'Should I Go All-In On Stocks Or Keep Saving For A House?' originally appeared on Benzinga.com