where to put future condo/house down payment?

[galaxyhi]

Flying:

Hi, I would stick with your plan, but as noted, I would not go more than a 2 year CD, as rates are likely to increase.

Also, as noted, I think 10% into a higher risk account may be warranted, if you are not too risk adverse.

I still think you also have too many variables, that you might want to consider or reconsider or revisit by 5 to 7 years from now. For example, are you sure you'll be ready to buy tgen, if the market goes way up? Are you sure you want to buy waterfront on Puget Sound? Are you sure you in 7 years, you'll feel the same?

My OH and i were, key word were, going to buy in our targeted retirement zone, and could have gotten sone real bargains in that area a year ago. Weve ressearched tge,area to death, but decided wed best wait til we are actually ready to buy and actually move or at least snowbirds there. We've also looked at two other areas,since that may be where we land, we decided to wait. There will still be bargains in a few years when the time comes , I think, and you may find a bargain when you are ready to buy also .

There's too many variables. Prices may come down as
Interest rates go up, on the other hand, the rates will probably be higher costing you more interest expense in the future.

Ultimately if you aren't ready now, If I were you, I'd sit tight , save as you will in CD s, and re-evalute every 2 years.

Things can change in 7 years drastically, one never knows.

Also, id check around for CD interest rates, and consider the higher online CD accounts to maximize your return. Who knows in 5 years you may get a,whopping 10% on a CD for the last 2 years! ( wouldn't than be nice) . You can still ladder for with shorter terms on the CD s.

Also, I habe noticed some online regular savings 9r money markets rates can be just as good as CD rates, so you might not even have to wait and lock up your money.

Good luck as,you plan.

[flyingsaucermom]

Originally Posted by galaxyhi

Flying:

Hi, I would stick with your plan, but as noted, I would not go more than a 2 year CD, as rates are likely to increase.

Also, as noted, I think 10% into a higher risk account may be warranted, if you are not too risk adverse.

I still think you also have too many variables, that you might want to consider or reconsider or revisit by 5 to 7 years from now. For example, are you sure you'll be ready to buy tgen, if the market goes way up? Are you sure you want to buy waterfront on Puget Sound? Are you sure you in 7 years, you'll feel the same?

My OH and i were, key word were, going to buy in our targeted retirement zone, and could have gotten sone real bargains in that area a year ago. Weve ressearched tge,area to death, but decided wed best wait til we are actually ready to buy and actually move or at least snowbirds there. We've also looked at two other areas,since that may be where we land, we decided to wait. There will still be bargains in a few years when the time comes , I think, and you may find a bargain when you are ready to buy also .

There's too many variables. Prices may come down as
Interest rates go up, on the other hand, the rates will probably be higher costing you more interest expense in the future.

Ultimately if you aren't ready now, If I were you, I'd sit tight , save as you will in CD s, and re-evalute every 2 years.

Things can change in 7 years drastically, one never knows.

Also, id check around for CD interest rates, and consider the higher online CD accounts to maximize your return. Who knows in 5 years you may get a,whopping 10% on a CD for the last 2 years! ( wouldn't than be nice) . You can still ladder for with shorter terms on the CD s.

Also, I habe noticed some online regular savings 9r money markets rates can be just as good as CD rates, so you might not even have to wait and lock up your money.

Good luck as,you plan.

Thank you!

The variables are definitely all over the place. My husband is also all over the place. I can give a few examples:

1) In March/April he was adamant about buying prepaid college tuition through the state program... but by June he was adamant about sending them abroad for their education.

2) He recently moved into a new group at work... but he's still moving forwards with an interview in his home country next month.

3) He says we should save "as much as possible"... and yet here we are about to go on this crazy trip to Europe for a month (which, by the way, had very tangible consequences on MY plan of buying real estate... which was going to be between 3-5 years and NOT 5-7).

I've said it around these forums from the get go that we work on creating plans together, but ultimately I'm the one who sees them through, or to put it another way, I'm the one the starts and follows the habits and routines that get us to the destination. Like the trip we're about to take... it was entirely planned by me even though I am the least excited about it. When he kept talking about paying off the mortgage, as he did for several years, I eventually got down to actually setting the course to reaching that goal... but it was never going to happen without me setting up the road map.

Not sure how I feel about this. Back when I recognized this (early in marriage) a therapist pointed out that it gave me a lot of power to which I retorted: yes, but I'm always alone in it.

That's still true today.

What I do know is that I don't want to be in this condo much longer after my youngest graduates... and I want options for that time, which is what I'm saving for. If we want water front property in or near Seattle (something my husband has mentioned many, many times) well, I know how much that costs in today's dollars and know that it would be expensive... I will need a large down payment and also a large mortgage. If I wait to save until I have a clearer understanding what our goals are then I might not save enough.

If we end up relocating... to outside of Seattle, WA state or even out of the country... I think we'd have a huge surplus of cash that I'll need to reckon with... it would be similar to cash windfall and I might want to talk to a financial advisor at that time.

I did set a date yesterday morning for when I want whatever future money collected to be available: September 1, 2024. My boy will have just started his senior year.

I have to have a road map to stay focused. I need a focus to set up routines and habits that take us to the next goal. Otherwise I feel aimless and anxious and I waste time and money.