I have about 65% of the down payment I'd like to use on a house purchase in about a year and a half. Right now the money is just sitting in savings with little to no earning besides the amount I add to it each week. I pulled it out of a few ETFs/Index funds 6 or so months ago but that was because there was so much speculation about the Fed's plans for 2014. Now this article is making me think I should put the money back in and be a little more aggressive.

Any advice? I'd appreciate it.

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Posted by Teddy Ruxpin

Member since Oct 2006

39553 posts

Posted on 3/31/14 at 4:45 pm to TexasTiger34

quote:
I have about 65% of the down payment I'd like to use on a house purchase in about a year and a half.

Personally, if I'm saving money to buy a house, 1.5 years isn't a long enough time horizon for me to justify sticking it back into the market.

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Posted by ell_13

Member since Apr 2013

84943 posts

Posted on 3/31/14 at 4:48 pm to Teddy Ruxpin

Too much risk for the time frame. You could lose 20% of that in that short of time easily.

Some will say you should just use 20% for the house and put the rest where you want it to grow as it will likely beat today's rates. But then again, you aren't building today (why not?).

Others will say try to be debt free, or the closer to it the better. So keep adding. Let it grow. Then use what you have when you're read to build.

I think the only way to go wrong is to put it all back in the market where you're taking a chance on your plan to build so soon.

This post was edited on 3/31/14 at 4:50 pm

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Posted by TexasTiger34

Austin, Kind of

Member since Mar 2008

11338 posts

Posted on 4/1/14 at 8:48 am to ell_13

Thanks yall.

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