Let me propose a mental exercise. Don't worry. It will not hurt.
Suppose Biden's handlers decide to give every adult in the US $1000 in 2023 as an "inflation adjustment".
Further suppose that the stimulus is likely to increase inflation as more dollars will be chasing existing goods and some workers sitting on the sidelines might decide that they do not need to return to productive work for another month or so.
Some people will use it to buy lottery tickets. Others booze and cigarettes. Some will purchase shoes. Still others might visit an all-inclusive resort. Others might pay down a credit card.
The question on the table is: "If you were to receive a $1000 windfall, what would you invest it in?"
To make it interesting, why do you think your choice would either "retain value" over the 2yr-to-10yr time horizon or become very difficult to replace in that time-frame?
We would probably invest in a newer vehicle for Mrs ERJ. Her 2008 minivan has 300k miles on it. A seven-year-old, base-optioned, smallish SUV like an Equinox or Escape or Sportage would probably be right in the sweet-spot. Even better if it was from down-South where they do not salt the roads.
I have to admit that I am leery of the turbo-charged engines they are cramming into vehicles now. I am even more leery of that all-electric options that seem to be flooding the field.
One of the key characteristics that separate the financially competent and the poor is that the financially competent see income-and-expenses on a continuum while the poor are perpetually surprised.
The basic instinct of a poor person is to "Spend it quick, before it disappears". Windfalls come in and PRIOR COMMITMENTS rise up like the kraken's tentacles out of the deep. the windfall disappears like urine sinking into a sand-dune with no (perceived) benefit to the poor person's lot in life.
Poor people do not mentally "book" the expense when it is made but when it is paid. And since human wants ALWAYS exceed budget, poor people are always surfers on the back-side of the wave, paddling like crazy-mad to just stay even.
The financially competent have plans for windfalls. We know they happen sometimes. And the worst time to plan is when the bullets are whizzing over head or you have 10, crisp, new Benjamins in your paws.
Far better to do it while those are still hypotheticals.