Episode Details

Scott and James discuss where to invest cash earmarked for a down payment.

Planning Points Discussed

• Utilizing Time Efficiently
• Capital Appreciation
• Purchasing Power
• Other issues (IRAs, Inflation, Financial Goals, etc.)

Listener Question:

My wife and I have money (in cash, ~ $150k) earmarked for a down payment on a home.  There is no real urgency to buy a home other than setting down roots as our family grows as our current rental meets our needs.  However, with the housing market still red hot and interest rates increasing; we're contemplating waiting until the housing market/inflation rates cool a little bit. If we decide to wait, say 1-2 years, is there something we can do with the $150k to better work for us other than have it sit in cash? Conversely, if we plan to stay in the new home we purchase for 10+ years, does the higher house cost/higher inflation rates really matter if we have the money set aside right now? I guess some of this boils down to the old "rent vs. own". (additional context - we have a separate emergency fund established, we both max out our 401ks and invest monthly in an index fund brokerage account and 529 plan)

Timestamps:

3:00 - Where To Put Cash

5:36 - Mortgage Rates

9:45 - Return On Hassle

12:47 - Volatility

15:19 - Overview Of What's In Your Control

17:05 - Alignment In Your Financial Goals

LET'S CONNECT!

James

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Scott

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