Divorcing l and will get about $200k from home equity. I’ll be renting for the time being. I’m 40 with about $200k in retirement funds. What should I do? Large down payment on a new house? Half of it to invest and half down payment? Rent and invest it all? Is there a good investment where I could make bank for a year then buy a house?
$200k in divorce. What to do?
byu/BloodstainedBearRug ininvesting
Posted by BloodstainedBearRug
9 Comments
Need more information. What is your income? What would your rent be? How expensive are homes in your area? Given your comment about trying to “make bank for a year” on an investment, I am inclined to recommend that you put it into a high yield savings account or hire a fiduciary.
look up the prime directive on r/personalfinance , they have a flowchart to follow. No one on here can tell you if stocks or owning a home is a better investment with no info, but you shouldn’t invest it if you are planning on using it for a downpayment in a year. Just leave it in a HYS account .
I’d say rent and invest it all, unless you are certain that you want to stay in the house/area for longer than 3 years
A good investment where you can make bank for a year is not a realistic thing and I’d urge you not to gamble recklessly with the money. Put it in the market if you want but understand nothing is guaranteed.
Put it in a HYSA whilst to get your head around the situation – give yourself a piece of it to spend on you say 5/10% to just let loose if you need to – see how life develops over the year – rent somewhere cheap – give yourself time
I personally would rent and focus on investing as much as possible., making sure you have a 4 – 6 month emergency fund in a high-yield savings account and then put the rest in a brokerage like Fidelity, Schwab or Vanguard and make sure to open a Roth IRA (if you’re working) and/or a taxable brokerage account – Go to YouTube and search investing 101 or new investor…. Good luck!
I would put it into a portfolio entirely in ETFs with diversity in exposure, try and live as below your means as possible while maintaining safety, contribute as much of your compensation as possible to grow the account to $1 million and then start living a normal life with your income forgetting that the $1mil exists
I’d buy SATL calls.
1-year horizon to “make bank” is the dangerous part. with a 12-month buy-a-house timeline you’re a savings account user, not an investor. hysa or tbills, accept the boring 4-5%.