Author Topic: Plotting out my home down payment plan  (Read 561 times)

Daisyedwards800

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Plotting out my home down payment plan
« on: May 22, 2020, 12:39:04 PM »
We got temporary pay cuts at work and now i'm currently at about $115,000 plus a potential bonus (if that still happens) plus they contribute $7,000 to my 401k.  I have allocated 15% of my gross to my 401k each paycheck, which currently sits at $331,000 (it's mostly cash but I plan on putting back in the market asap).  I also have $13,000 in a Roth IRA (which is approximately half contributions/half earnings).  I have $3500 in my checking.  I am 37.  My take home now would be about $2800 a paycheck twice a month.  My corovirus-affected expenses are thus:

Rent $1,950
Student loan at 2%: $67
Mobile phone: $50
Electric/gas: $75
Parking: $75
Spotify: $13
Netflix: $16
Internet/Cable: $100
Fitness app: $25
Groceries: $100-200
Takeout/the occasional pizza/alcohol: $100
Gas: $20
Music lessons: $120 (not negotiable lol)

For a total of: $2,711

Yearly expenses are:
Car Insurance: $500
Vacation:  Up in the air this year but maybe $1200-2000 for a big trip (unlikely)

I'm ready to focus on beefing up my down payment fund which I consider my Roth part of.  I can use all contributions and up to $10,000 of earnings for part of the down payment.  I'd like to go this route with new money because I feel like now is the time to invest. 

I have made errors in the past because I was told you shouldn't invest money you plan to use for a down payment, but in my area it takes so long to accumulate a down payment (5-7 years on average) that I actually would have been better off investing it there instead of all in pre-tax first.

Anyway, lessons learned but I will likely have close to an entire paycheck after my 401k contributions to use for my down payment savings. I am getting $2,250 from the sale of an item that will go into the Roth, and then I will have just a few thousand left to max it out for this year.  Next I will start investing any extra in my Fidelity brokerage account into index or total market funds low cost funds. 

Part-time jobs appear to be out of the picture at this point provided we still are partially reopening. 

My partner has about $50,000 ready to go for a home, so ideally I would match that, and we are looking at starter homes $500k+ and up. 

Do you see any holes in my plan and other things to consider or hacks that I haven't thought of in these crazy times?

Dicey

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Re: Plotting out my home down payment plan
« Reply #1 on: May 22, 2020, 01:52:09 PM »
...my 401k...which currently sits at $331,000 (it's mostly cash but I plan on putting back in the market asap).
Yeah, I can see a hole...

Daisyedwards800

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Re: Plotting out my home down payment plan
« Reply #2 on: May 22, 2020, 02:52:04 PM »
...my 401k...which currently sits at $331,000 (it's mostly cash but I plan on putting back in the market asap).
Yeah, I can see a hole...

What do you mean?  I am up 5% this year so far since the markets ignored what was happening in Wuhan in January.  In my old 401k, I took out my money on February 5th and started putting it back in March 23rd until it was all in.  Then I took it out Monday to roll it into a rollover IRA and it's going back in after Memorial Day.
« Last Edit: May 22, 2020, 02:53:48 PM by Daisyedwards800 »

Dicey

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Re: Plotting out my home down payment plan
« Reply #3 on: May 22, 2020, 06:58:19 PM »
...my 401k...which currently sits at $331,000 (it's mostly cash but I plan on putting back in the market asap).
Yeah, I can see a hole...

What do you mean?  I am up 5% this year so far since the markets ignored what was happening in Wuhan in January.  In my old 401k, I took out my money on February 5th and started putting it back in March 23rd until it was all in.  Then I took it out Monday to roll it into a rollover IRA and it's going back in after Memorial Day.
Oh.

mozar

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Re: Plotting out my home down payment plan
« Reply #4 on: May 22, 2020, 07:38:20 PM »
Just your typical primary home questions. How long do you plan to live in your house? I hope that you make 500k your max. With 100k down that's a mortgage of 1900 and that's not including taxes and maintenance.

Daisyedwards800

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Re: Plotting out my home down payment plan
« Reply #5 on: May 28, 2020, 08:18:23 AM »
Just your typical primary home questions. How long do you plan to live in your house? I hope that you make 500k your max. With 100k down that's a mortgage of 1900 and that's not including taxes and maintenance.

I'm not sure $500k homes exist in my area.

mozar

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Re: Plotting out my home down payment plan
« Reply #6 on: May 28, 2020, 09:38:33 AM »
Are you paying $1950 in rent by yourself? Or Is that your half of the rent?
I'm trying to get a sense of comparison. If you matched 50k (100k total) that isn't enough for 20% down for a house more expensive than 500k.