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Ruxins Rascals
LSU Fan
Middle of Da Bayou
Member since Nov 2018
536 posts

Saving for Home Down Payment - Where to keep the money?
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.


b-rab2
LSU Fan
N. Louisiana
Member since Dec 2005
12179 posts

re: Saving for Home Down Payment - Where to keep the money?
I keep money in a income producing bond fund.


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iAmBatman
USA Fan
The Batcave
Member since Mar 2011
11179 posts
 Online 

re: Saving for Home Down Payment - Where to keep the money?


Weekend Warrior79
LSU Fan
Member since Aug 2014
7915 posts

re: Saving for Home Down Payment - Where to keep the money?
Image: https://i.imgur.com/zuudU5I.jpg


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.


Ruxins Rascals
LSU Fan
Middle of Da Bayou
Member since Nov 2018
536 posts

re: Saving for Home Down Payment - Where to keep the money?
Thanks!


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McLemore
Member since Dec 2003
26517 posts

re: Saving for Home Down Payment - Where to keep the money?
quote:

high yield savings account


Even the best/introductory rates I've seen lately are sub 1%.


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20
Parade Grounds
LSU Fan
BR,LA
Member since Jun 2017
799 posts

re: Saving for Home Down Payment - Where to keep the money?
If you have risk tolerance, Leave it in Amazon stock. Has been fairly steady and still has so much upward growth potential


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Mootsman
South Carolina Fan
Charlotte, NC
Member since Oct 2012
5488 posts

re: Saving for Home Down Payment - Where to keep the money?
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.



kennypowers816
LSU Fan
New Orleans
Member since Jan 2010
2438 posts

re: Saving for Home Down Payment - Where to keep the money?
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


tigersint
New Orleans Saints Fan
Lafayette
Member since Nov 2012
3252 posts

re: Saving for Home Down Payment - Where to keep the money?
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


eng08
LSU Fan
Member since Jan 2013
4917 posts

re: Saving for Home Down Payment - Where to keep the money?
Bitcoin


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Spec1
LSU Fan
Lost but making good time
Member since Jan 2015
1515 posts

re: Saving for Home Down Payment - Where to keep the money?
BTC.

Wait a month and pay house cash!
This post was edited on 1/7 at 1:38 pm


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11
Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
2257 posts

re: Saving for Home Down Payment - Where to keep the money?
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.


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20
Chitown_Badger
Chicago Cubs Fan
A one drink walk from Wrigley
Member since May 2013
20364 posts

re: Saving for Home Down Payment - Where to keep the money?
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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