Hi folks,
Here's the sitch:
DW and I have $250k across our retirement/investment accounts, and I think it's time to diversify into a real estate purchase. We live in NYC, so we could easily put our life savings into a down payment for a one bedroom condo in Brooklyn, but we are thinking that we may not want to stay here (HCOL, high stress/long hour jobs) so I am thinking to divert the next $75k we can put away for a down payment. Provided nothing changes w/our employment, this could be the next year of saving, and I'm hoping we've sorted out the "where" bit by then.
So:
Do I keep putting everything into Vanguard (and the highly inflated market) for the next year, and then sell the fund shares when needed for the purchase?
Do I divert the biweekly autopayment into a separate savings account and keep it liquid and outside the market until it reaches $75k and/or is needed for the purchase?
My "financial advisor" (friend who is a real estate investor and financial planner for the ultra wealthy) says to do the second option. She sounds worried about the market taking a nice big correction soon. That said, she also is in favor of us putting 200k+ into a down payment for a Brooklyn apartment.
What should I do?
Thanks,
TTFNYC