Personal Investments • Saving for down payment vs portfolio investment

Thank you very much for the reply.
Let's disregard the car for now to simplify.

Simple recommendations would be:

1) save 10-20% of gross salary towards retirements, depending on other income besides portfolio (SS, pension, etc.).
2) $100K terrain in 2 years is $50K/yr towards that, plus a $400K house with 20% down is $80K over 5 years or about another $16Kk/yr.
3) ...

If you have $73K/yr after maxing your 401K, Roth IRA, HSA, etc. then you can also fully fund goals 2 and 3.

From my simulations, I seem to be able to get a combined mortgage for a terrain (100k) + house building (300k) with a 60k down payment, which theoretically I could these following years considering the 50k + 20k/yr. But any goal can be pushed back a couple of years, I don't have a time restriction.
However, the 20k/yr is the 20% of net yr/income (after the mandatory state pension contribution). So a % of it should go into a 70/30 retirement portfolio.

How would you recommend splitting the 50k into the two goals? eg:
- 70/30 retirement portfolio : 10k + 10k/yr
- down payment savings account : 30k
- 20/80 down payment portfolio : 10k + 10k/yr

Maybe those contribution amounts could be slightly less if invested in a conservative portfolio of stocks & bonds (perhaps between 20/80 and 60/40) to get compound earnings rather than nearly flat interest in a savings account.

as you mention for the savings account for the down payment, you suggested using an e.g. 20/80 conservative portfolio instead of a savings account, but isn't that risky for a <5 (possibly 1/2) years time frame?

Statistics: Posted by eurwander — Tue Jan 09, 2024 5:21 am — Replies 2 — Views 334

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