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Location: Nothing could be finer... I'm in S. Carolina!!
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op, how is a house a short term decision? i'm not sure what you mean.
i should add that we're young and don't have much money except for that so i see us using it sometime in the future (before retirement) - at least some of it. we have a lot of expenses coming up (business start up and house purchase) in the next year and a half. no credit cards or debt, but we will have some soon. and the worse part, we started with $400. we don't want to "realize" the damage by withdrawing, but we also need to use it and don't want to see it gone when we need it. it's almost like we're the poor folks who are at retirement watching their money dwindle when we need it most. sigh.
op, how is a house a short term decision? i'm not sure what you mean.
i should add that we're young and don't have much money except for that so i see us using it sometime in the future (before retirement) - at least some of it. we have a lot of expenses coming up (business start up and house purchase) in the next year and a half. no credit cards or debt, but we will have some soon. and the worse part, we started with $400. we don't want to "realize" the damage by withdrawing, but we also need to use it and don't want to see it gone when we need it. it's almost like we're the poor folks who are at retirement watching their money dwindle when we need it most. sigh.
Thanks for explaining your situation. Obviously, my situation is different from yours. I invested in stocks for long term retirement (30 years horizon). That's why I said I would not take out money from my retirement fund.
However, in your situation, where you invested in stocks for the near future, it's totally different. The answer to your question is actually quite simple that only you can answer; Do you think your business will net higher return than stock investment for your time horizon? If so, then you should definitely sell the stocks (probably for a loss) and start your business.
My advice is to not let the 100k steer you towards buying a more expensive home simply because you can afford it on paper with a large downpayment. I just sold a home that I paid 325k for 3 years ago and put 130k down on that home. I now have bought a home that perfectly fits my needs which I paid 195k for (same location). I am recasting my current mortgage to end up with a 65k mortgage that I will pay off in the next 2 years. My goal with a home is to buy one that I can be debt free on rather than look at the 30year mortgage as the only option.
I would suggest that you let the 100k lead you to a smaller home debt than to buy more house than you need simply because you have a very decent down payment.
This is a great advice, if you are moving within the same area or to a a similar priced house market.
Many ppl sold their house at the peak in 2006 and realized huge capital gains. Unfortunately, they used the proceeds only to purchase 2 times more expensive house at the peak. You know the rest story.
This is a great advice, if you are moving within the same area or to a a similar priced house market.
Many ppl sold their house at the peak in 2006 and realized huge capital gains. Unfortunately, they used the proceeds only to purchase 2 times more expensive house at the peak. You know the rest story.
I didn't! I sold near the peak and have rented since. I lovin' the crummy housing market.
Way to go bigtrees. I only wish I would have moved sooner to sell my 2 homes in 2005. I would be sitting on a wad of cash ready to buy cash and then some left over.
Location: Nothing could be finer... I'm in S. Carolina!!
1,294 posts, read 6,485,070 times
Reputation: 421
thanks for the reply acegolfer. it was a gift to us too (husband's inheritance) so this also makes it tougher. but anyway - we'll probably use (what's left - it's steadily decreased since we took over the account) it for the business (dental practice) - won't go far there and/or a house.
all i know is that i officially HATE the stock market!! haha. my experience thus far has been very bad. we almost took the money out when we first got it to buy a house we could have lived in for years and years and years. i wish we had done that - even if we had never moved, we'd at least have something to show for that lost money.
Right now is an excellent time to buy into the stock market, prices are rock-bottom now...they may go down a bit further but you have a great opportunity to get once-in-a-lifetime positions in companies.
However, if you're buying a house to LIVE IN, not a bad place for your money either.
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