I’m 26 and make $77k per year plus quarterly bonuses. I am looking to save for a 20% down payment on the house in the next 3 years. Where should I put my money to let it grow for the next 3 years that would be easy to put money in each month? Should I lower my input into my 401k from 15% to 10% in order to put more money into saving for a house down payment?
You have a couple of different things going on here. For the house down payment you should save the money in a high interest savings account. Trying to invest for the short-term could be a very risky proposition.
If the market were to move lower in the next three years it would be a tough time for you to pull out money out for a down payment. If you had a longer-term focus investing it.
The other question you pose is around how much to take from your retirement savings and save towards a down payment? To that, I would ask if you get any match from your company? If you do then that may make up the difference of taking 5% away from the retirement savings and putting it towards a down payment. Being that you are young and saving 10% it would make sense for you to set aside the additional 5% into a house down payment fund.
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