30 years old and want to start saving for a home...where to begin?

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njfastlife
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Joined: Tue Jun 14, 2016 8:54 pm

30 years old and want to start saving for a home...where to begin?

Post by njfastlife » Sat Mar 18, 2017 10:47 pm

i am aiming to save $50-100K for a down payment for a home. my timeline ~4 years from now and i'd like to park my money somewhere else other than a savings account in order to have the money appreciate a bit more.

any advice or insight?

thanks.


nlecaros
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Joined: Sat Jul 11, 2015 8:28 pm

Re: 30 years old and want to start saving for a home...where to begin?

Post by nlecaros » Sat Mar 18, 2017 11:27 pm

Not enough information in your post to give anything more than the most basic advice. For example, are you already in the habit of saving?

If not, I'd start with an automatic savings program where a percentage (at least 10%) of my paycheck is automatically deposited to a savings account.

njfastlife
Posts: 89
Joined: Tue Jun 14, 2016 8:54 pm

Re: 30 years old and want to start saving for a home...where to begin?

Post by njfastlife » Sun Mar 19, 2017 2:47 pm

nlecaros wrote:Not enough information in your post to give anything more than the most basic advice. For example, are you already in the habit of saving?

If not, I'd start with an automatic savings program where a percentage (at least 10%) of my paycheck is automatically deposited to a savings account.


yes i am in the habit of saving - at least as best i can at the moment.

i currently contribute the max to my 401k and my Roth IRA as well as having at least 6 months living expenses saved.

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Artsdoctor
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Re: 30 years old and want to start saving for a home...where to begin?

Post by Artsdoctor » Sun Mar 19, 2017 2:53 pm

In order to make more, you'll have to risk more. There's really no way around that. If you have a specific goal, exactly 4 years for example, equities are out unless you're really willing to have a volatile ride. You can try to match that date with specific CDs as you have more money, and you can use bankrate.com (or other sites) to compare. However, you'll probably find that online savings accounts offer the easiest set-up (1-1.25%, FDIC-insured, and withdrawal at any time).

Artisan
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Re: 30 years old and want to start saving for a home...where to begin?

Post by Artisan » Sun Mar 19, 2017 3:19 pm

As they say, there is no free lunch.

If you want to get a higher return, you have to take a higher risk with your funds.

You have a relatively short time frame in which you need this money so investments where there is a chance of loss of principal isn't a good option.

Since online savings or short term CD's aren't going to appreciate as fast as you'd like the only way to increase the balance is to save more.

Increase your savings rate or get a higher paying or second job.

nlecaros
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Joined: Sat Jul 11, 2015 8:28 pm

Re: 30 years old and want to start saving for a home...where to begin?

Post by nlecaros » Sun Mar 19, 2017 3:34 pm

nlecaros wrote:
njfastlife wrote:
nlecaros wrote:Not enough information in your post to give anything more than the most basic advice. For example, are you already in the habit of saving?

If not, I'd start with an automatic savings program where a percentage (at least 10%) of my paycheck is automatically deposited to a savings account.


yes i am in the habit of saving - at least as best i can at the moment.

i currently contribute the max to my 401k and my Roth IRA as well as having at least 6 months living expenses saved.


As others have replied, you'd have to take some risk if you want more return. From my own personal experience, I was 20% in equities during the period that I was saving up for a home down payment. Since bond yields were abysmal, my hope was to gin up my returns with slightly more risk. I was very lucky: I started in late 2011 and bought the house in 2014. Your mileage may vary.

Also, I had to temporarily suspend contributions to my 401K and Roth IRA around that time.

gator1
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Location: Smoky Mountains of East Tennessee

Re: 30 years old and want to start saving for a home...where to begin?

Post by gator1 » Sun Mar 19, 2017 7:38 pm

Same age as you, saving for a house as well(hopefully will save enough for a cash only purchase). I keep mine in a 1% savings w/ Ally. Of course, I could invest this money but I like knowing it's "safe" and I still get a little bit out of keeping it at Ally.

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