Where should money for a short-term goal sit?

Detailed Explanation

Away from volatility. A goal a year or two out has no time to recover from a decline, so the ordinary trade-off inverts: the priority is that the amount is there when needed, not that it grew. Cash and cash-like instruments do that job. The common error is treating one pool of money as one risk decision. A house deposit needed next spring and a retirement balance needed in thirty years are different problems and should be held differently, even though they belong to the same person.