I'm going to be receiving a large sum of money as my part of an inheritance, and I plan to use part of it on a down payment for a house in the next year or so. What kind of account should I keep this money in for it to be accessable when the time comes? I feel like a HYSA isn't the right answer and it would be better served in a brokerage.
Also I don't really know much about investing or watch the market enough to have any idea what to buy stocks in so how would that work? Would I just pay a company to manage it for me like is done with my work 401k?
Where to keep home down payment money
byu/bluecatky inpersonalfinance
Posted by bluecatky
7 Comments
No risk vs risk. Which do you prefer?
For short time frames for spending money 5 years or less) pick your favorite cash equivalent and put it there.
When do you want to buy a house? If less than 5 years, HYSA. If your state has a high income tax rate, you may want to look for other options that avoid that such as treasuries.
Make sure your emergency fund is full first!
You’re thinking about this the right way.this is a **short-term goal**, so your approach needs to prioritize **safety and liquidity** over chasing returns
The stock market is down 10% this year with no end in sight. Is that better than HYSA for a down payment? Nope.
For money you will need in less than 12 mo. HYSA or CD, or if a brokerage account there are money market funds or short term treasury funds which will meet your goals.
Keep it simple. Put what you need in a cd. If there’s a surplus invest, but realize with this new war markets are down and could drop more. If this continues and oil shipping is still hindered, world markets could contract.