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TSLA 1000 2021’ C!!
You ain't wrong but man options on Tesla super stressful. One day your up 200% next day your down 300%. OP would go crazy
I would go with a bond based fund. Can’t go wrong with a little bit of market based shares though.
Invest in F500 companies at the right time
SPY
Rising Star
General rule of thumb is that anything needed in the next 4-5 years should be in a savings account or equivalent. Too short a timeline to invest.
Buy the whole market
Maybe a 2030 retirement fund that is split b/w bonds and stocks. That way you get some of the upside but you have some insulation for a crash
Rising Star
Can someone answer why not a real estate fund? Doesn’t it make sense (if I’m going to take risk) to have an investment vehicle that has a strong correlation to what I’m saving for? If housing market continues to go crazy, my investments reflect that. Likewise, I’m somewhat protected in a housing market crash. I realize the stock market and housing market are correlated as well, but not as much.
I think the better option is probably the newer low fee private reit options that give you liquidity, but you lose diversification. Basically you buy shares in local real estate, but don't know how wide spread that is or what expected returns look like.
You're basically looking for an MBS but Idk enough about retail investing in those to know if that's even an option. I do know they disappear when the market crashes though.
Imo, savings. The primary purpose of this money is for a downpayment, not to make investment gains. If you conflate your purposes, you take on the inherent risks of investing and jeopardize your ability to meet your primary objective.
Now, if your timeline were much longer, then I’d give different advice.
By the way, would you mind telling me about your current home and the purpose of this second property? It wasn’t your question, but there may be an argument for paying off your current home before taking on more debt.
I think paying down the mortgage is the best bet, yes. And I don’t think the cash issue you mentioned will actually be an issue. As I understand, if you’re buying and selling at the same time, the profit from your sale can be considered in your purchase application, effectively as a downpayment (instead of “taking” the cash from the sale, you sort of roll it over into the new home).
Hypothetically, let’s say you net $100k from the sale (out the door, after paying off the current loan and paying for all the closing costs for the new loan) and let’s say you need at least $75k for downpayment (this is likely 20% of the purchase price, but this figure varies by loan product). In this scenario, you have sufficient “cash” for your downpayment. You could pocket the $25k difference or throw the whole $100k at the purchase, to reduce your loan amount.
5 years? Easy af.
Bitcoin. All of it. If you DCA it while you’re saving up over the years, even better.
At the very least hypothetically put the number down on paper today to look back at it 5 years from now.
Don’t worry about volatility and the fears of people. You will understand the logic and it will make sense to you as you invest and hold through the waves over the long term.
Do not sell in the short term unless you know what you’re doing.
Cue the disbelievers.