Investing advice and where to park money saved for house

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kanjoos
Posts: 32
Joined: Sat Aug 08, 2015 11:15 pm

Investing advice and where to park money saved for house

Post by kanjoos »

Family info: dual income total of 250K with 2 kids 7 and 9 and we are in early 40s
CD+money market/saving/check: 170K+500k
401k/Roth combined: 1.3M continue to max 401k
Company stocks+vtsax+ other individual stock: 210k+75k+25k
Kids 529: 50k each
Current home value $625K with 120k mortgage remaining
Other real estate: Rental property with value of 250k fully paid and generates after all expenses about $1000 per month

We are looking to upgrade our house we had cash last yr but due to covid chaos waited and now home buying has been challenging. We are looking at house in 1.2M to 1.3M which were 15% less last year since we are in same school district already we are not in a rush but want to upgrade since when we got our existing home was starter since we had little kids etc.

1) We have this pile of cash which is not keeping up with inflation and not sure what to do? On our existing monthly savings thinking about investing weekly in 70/30 vanguard funds . Any thoughts or suggestions here on existing and new savings?

2) With our assets we are not splurging too much to a 1.3M house are we? Our plan is to stay there forever if possible or move away once kids are past college.
Golf maniac
Posts: 1359
Joined: Wed Dec 27, 2017 1:02 pm
Location: Florida

Re: Investing advice and where to park money saved for house

Post by Golf maniac »

Any cash you use for your down payment on your home and an emergency fund should be kept in a safe investment like a money market or saving account. The remaining can be invested based on your risk tolerance. Your PITI should be around 25% of income dependent on any other debt you may have such as cars, credit cards, or personal loans. No mention of age but you seem to be doing very well. Good luck on your house hunt.
jimjam600
Posts: 20
Joined: Thu Mar 25, 2021 2:25 pm

Re: Investing advice and where to park money saved for house

Post by jimjam600 »

With your assets, you can afford it I think. But I agree, keep down payment money in something really conservative--especially if your other investments are very risky (e.g., individual stocks, real estate development, crypto). I've got very similar NW and income, and are looking at things going for $1.8-2 bc I'm in the Bay Area. HCOL areas sometimes require stretching a bit on housing.

Curious--How'd you get to to your NW with your income and two kids? Make more money early or get lucky? Something else?
Topic Author
kanjoos
Posts: 32
Joined: Sat Aug 08, 2015 11:15 pm

Re: Investing advice and where to park money saved for house

Post by kanjoos »

Thanks. I was lucky enough to finish college at the age of 21 and been working since and rental home is what we got for inheritance..rest is savings and investment luck. Luckily, my wife and I are on the same page about saving/investing. Just have one regret about not upgrading last year and now having to compete for house with multiple offers.
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