As the title says, I'm in the process of saving as much cash as possible to (try) and buy a house.
Roth is already maxed for the year, and my 401k is set up to be maxed out. I have 0 debt, the high 5 figures parked in a HYSA. I'm going bare minimum to try and park away around 3-4 k biweekly. The HYSA will most likely stay where it is and act as a long term emergency fund.
Are there any investment strategies (around 5 years) you guys would recommend to get the most out of what I'm putting away, or is a high yield the best option for a house fund?
I spent years clawing myself out of a bad situation so I'm very new to the investing side of money management. Any and all advice is greatly appreciated
Saving cash to buy a house. Seeking advice
byu/Fast-Squirrel-9500 ininvesting
Posted by Fast-Squirrel-9500
7 Comments
Following. I am in the same situation with looking to purchase a house in the next 2 years. Probably going to put it almost all in sgov with 25% in VOO
What’s your budget and income
Does your state offer a home buyer’s savings account? That’s a good option to max out at the end of year as you get tax benefits from using it.
Am I reading this correctly that you have high 5 figures (70-90k) in an HYSA already? Thats more than enough for a down payment on a starter home. Are your HYSA funds untouchable for the house purchase or do you want to save as much as you can and supplement with the HYSA?
FMTM and SPMO are doing fine
I want to preface this by saying that this is a personal decision and may not apply to everyone.
I plan to buy a house, but I don’t have a specific timeline—maybe in five years, maybe ten. In the meantime, I’ve been investing the money in VTSAX. When the time comes to buy, I’ll simply sell the funds.
I take the same approach with other future goals as well. Essentially, it’s one large pool of invested money for things I know I’ll want eventually, even if I don’t have a defined timeline for them yet.
I’m also very flexible. If the market tanks, I don’t mind waiting longer until the right time comes.
Are you flexible with your timeline? If so, this might work for you.
HYSA or similar investment is probably your best bet, and over relatively short time horizons your contributions will be doing most of the work for portfolio growth.
If you were to do something with a brokerage account I’d still keep it very low risk and predominantly short or at most intermediate bonds. Maybe like at most 15-ish percent equities and low-volatility leaning.