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stendulkar
LSU Fan
Member since Aug 2012
385 posts

Best way to save for a home down payment?


Target is it get as close as possible to $100K by next summer. Currently I have $25K in my savings and $30K in stocks (which I plan to liquidate at for the down payment). I am able to save about $2K per month. I should get a bonus sometime between now and next summer which should also help.

So what is the best place to keep this money over the next 12 months? I earn less than 10 cents a month in my savings. Are CDs much better? Also should I start selling off my stocks at some point? If so what would be a good time line?







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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
8702 posts

re: Best way to save for a home down payment?


quote:

Are CDs much better?


No, MM accounts pay just as much as 12 month CDs and don't have all the restrictions.


quote:

Currently I have $25K in my savings and $30K in stocks (which I plan to liquidate at for the down payment). I am able to save about $2K per month. I should get a bonus sometime between now and next summer which should also help.


So you have roughly $55K assets, plan to add approximately $24K over the next year if nothing changes. So if stocks do nothing over the next year, and you don't add any more than you plan to, you'd be at $89K give or take, and you're goal is to be as close to $100K as possible?

You're pretty damn close, I wouldn't take too much risk if you'll need the funds a year from now. Put Savings in an Online Money Market HERE is where to quickly find a good one. or you can buy a US I-Bond at 1.18% for 12 months (probably the safest yield out there).

As far as selling your stocks, only sell the ones that are in a taxable account (obvious to most, but you never know with this board). As far as when to sell them, up to your comfort zone brother.











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stendulkar
LSU Fan
Member since Aug 2012
385 posts

re: Best way to save for a home down payment?


Thanks for tips.
quote:

As far as selling your stocks, only sell the ones that are in a taxable account (obvious to most, but you never know with this board). As far as when to sell them, up to your comfort zone brother.

These are stocks that I bought from my disposable income after paying taxes. They are in a brokerage account. Most of them are long term investments, so I shouldn't be paying too much in short-term capital gains. Can you elaborate a bit of what you are implying?






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TheDiesel
LSU Fan
Houston via Baton Rouge
Member since Feb 2010
2396 posts

re: Best way to save for a home down payment?


Don't forget you can borrow from your Roth as well if you have one.

eta: As a last resort



This post was edited on 7/11 at 1:11 pm


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