Author Topic: Where would you store a potential down payment in my situation?  (Read 1815 times)

Crash87

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Where would you store a potential down payment in my situation?
« on: December 02, 2012, 01:23:18 PM »
Hi all,

A question: If you were in my situation, would you A) buy a house or continue to rent and B) if you rent, where would you store the savings?

The scenario:
I'm 25 years old.
I make 60k a year and promotional opportunities could put me around 80k in (hopefully) 5 years.
I currently max out my Roth IRA (5k per year) and my work retirement plan (17k per year).
Debt free!
I have a kasasa account that already has met the balance limit to receive 3% interest (15k).
Rent is 550/month. Utilities are low since it's a fourplex.
I live in St. Louis but would consider very heavily moving somewhere with better weather if a raise is involved.

My current thoughts: I rent to stay mobile in case a distant promotional opportunity arises and I live close to some good friends. I would not likely buy in the area I live since it's not a great place safety wise. My best guess is that a potential down payment might best be stored in a couple fairly low risk vanguard index funds.