Author Topic: Where to stash the cash  (Read 1607 times)

alwayscarryon

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Where to stash the cash
« on: October 13, 2014, 03:20:47 AM »
Dear Mustachians -

Many thanks for your advice thus far.  Ive got 20K saved up and im torn between throwing it into my taxable retirement account or stashing it away for a downpayment on my first house.  Im 32, single, finally debt free after squashing 90k in student loans and I have about 85K in my retirment account thus far (target 2040 retirment mutual fund, etc).  I know that its never a bad idea to invest the money, and that homeownership is more of a lifestyle choice than an investment these days, but id be happy to hear some thoughts.  Very much appreciated. 

Pooperman

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Re: Where to stash the cash
« Reply #1 on: October 13, 2014, 06:50:34 AM »
Depends on if you want to have a house (and what the prices in your area are). Some places, buying makes more sense than renting, other places the costs for a house are just too much and renting comes out ahead (like where I live). If you do want a house, save for a down payment. If you don't want a house (at least not now), then invest.

Bob W

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Re: Where to stash the cash
« Reply #2 on: October 13, 2014, 10:50:23 AM »
You are doing very well my friend!

IMHO, rarely buy a house unless you have the cash to buy it and then at these rates borrow.   Since you have around $105K saved up that would be my limit on a house.   If you want bigger, better,  more expensive then save until you reach that number. 

I've said this many times here but will repeat.  With houses people say "buy" when they mean "borrow" or "mortgage".   If you're borrowing on a house you are mortgaging.   The banks actually buys the house.  You sign a contract with the bank.   

It is not word play or a fine point.   You "buy" a house when you write a check for the house.