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Message
Saving for Home Down Payment - Where to keep the money?
Posted on 1/7/21 at 7:53 am
Posted on 1/7/21 at 7:53 am
I am currently saving for my first down payment on a home. I would expect to need the money sometime in the next 18 - 24 months. I currently have the money saved in a "high yield" online savings account. I am slightly concerned about inflation over then next 2 years, so is this truly the best place to park money? I know the online savings will be my least risky option, but just trying to see what others would do in this situation as I am <25 y/o.
8
Posted on 1/7/21 at 7:59 am to Ruxins Rascals
I keep money in a income producing bond fund.
Posted on 1/7/21 at 8:13 am to Ruxins Rascals
Posted on 1/7/21 at 8:13 am to Ruxins Rascals
I would look into some mutual funds or bond funds if you are over 1 year out. I'd then move it over to a high yield savings account when I am about 6 months.
Posted on 1/7/21 at 8:14 am to iAmBatman
Thanks!
Posted on 1/7/21 at 10:27 am to Weekend Warrior79
quote:
high yield savings account
Even the best/introductory rates I've seen lately are sub 1%.
Posted on 1/7/21 at 10:43 am to Ruxins Rascals
If you have risk tolerance, Leave it in Amazon stock. Has been fairly steady and still has so much upward growth potential
Posted on 1/7/21 at 10:53 am to Ruxins Rascals
I am in the exact same position. Should be able to buy something next January. Was thinking of putting all of it in the SPY. Assume that it should get at least 3-5% over the next 12 months but you never really know. Right now I have it in a Goldman Sachs savings account and its only getting 50bp. Feel stupid missing out on the market increases but it is the safest bet.
Posted on 1/7/21 at 11:09 am to Ruxins Rascals
I was in the same situation a few years ago. I left it in a savings account. To me, the risk wasn’t worth the upside. I wanted to make sure I had my down payment secured to avoid PMI.
If you’re comfortable with potentially losing some of your down payment and having to pay PMI or waiting longer to save more, then I’d put it in an index fund, but if not, just leave it in savings and be happy when you find the house you’re excited about.
Good luck
If you’re comfortable with potentially losing some of your down payment and having to pay PMI or waiting longer to save more, then I’d put it in an index fund, but if not, just leave it in savings and be happy when you find the house you’re excited about.
Good luck
Posted on 1/7/21 at 1:26 pm to kennypowers816
Would gold be a good option rite now?
Sitting on about 40K and want to buy a house next year but i want to put about it 1/4 into gold until then. I feel that that would keep money secure and allow for inflation to be countered against with gains from gold on the 1/4
Sitting on about 40K and want to buy a house next year but i want to put about it 1/4 into gold until then. I feel that that would keep money secure and allow for inflation to be countered against with gains from gold on the 1/4
Posted on 1/7/21 at 1:28 pm to tigersint
Bitcoin
Posted on 1/7/21 at 1:37 pm to Ruxins Rascals
BTC.
Wait a month and pay house cash!
Wait a month and pay house cash!
This post was edited on 1/7/21 at 1:38 pm
Posted on 1/7/21 at 2:25 pm to Ruxins Rascals
quote:
I am currently saving for my first down payment on a home. I would expect to need the money sometime in the next 18 - 24 months. I currently have the money saved in a "high yield" online savings account. I am slightly concerned about inflation over then next 2 years, so is this truly the best place to park money? I know the online savings will be my least risky option, but just trying to see what others would do in this situation as I am <25 y/o.
Let me ask you something. If you decide to go for the risk on option and you make 10-15% over the next 18-24 months, how will that affect your prospective housing situation? And conversely, if you lose 10-15%, how will that affect your housing situation?
I, personally, would be much more concerned with guaranteed capital preservation over possible higher profits, if I was going to use the money to purchase a home.
Anyway, good luck to you on buying a home at a relatively young age.
Posted on 1/7/21 at 2:38 pm to Mootsman
quote:
I am in the exact same position. Should be able to buy something next January. Was thinking of putting all of it in the SPY. Assume that it should get at least 3-5% over the next 12 months but you never really know.
This would be a incredibly terrible idea. Ever heard the saying "don't put all your eggs in one basket?"
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