Best Down payment

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Stoic9
Posts: 96
Joined: Mon Dec 10, 2018 7:14 am

Best Down payment

Post by Stoic9 » Mon Jun 29, 2020 3:34 pm

I'm retired and have plenty of passive income to live on. We are buying a new house and I need about 25K more cash for the down payment. I'm in the 24% tax and 15% capital gain. I have the following to get money from.

401K
Trad IRA
Roth IRA
Taxable account Index fund
Taxable account Lifecycle 2020 ( this has lagged my other investments the past several years as it became less aggressive)

I do not need this money (about 1.2 million)

I'll get about 300K 2-4 weeks after we buy this new house (will sell our current house)

I'm thinking of cashing in my Lifecycle2020 as it is small (40K) and that removes one account from my tracking system.

Curious if anyone has some thoughts on this plan?

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Duckie
Posts: 7399
Joined: Thu Mar 08, 2007 2:55 pm

Re: Best Down payment

Post by Duckie » Mon Jun 29, 2020 9:09 pm

Stoic9 wrote:We are buying a new house and I need about 25K more cash for the down payment. I'm in the 24% tax and 15% capital gain.
<snip>
Taxable account Lifecycle 2020 ( this has lagged my other investments the past several years as it became less aggressive)
The purpose of a Lifecycle fund is to get less aggressive so it is doing what it is supposed to. However, it is not tax-efficient and to me would be the best choice to sell.

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geerhardusvos
Posts: 695
Joined: Wed Oct 23, 2019 10:20 pm
Location: heavenlies

Re: Best Down payment

Post by geerhardusvos » Mon Jun 29, 2020 9:28 pm

Stoic9 wrote:
Mon Jun 29, 2020 3:34 pm
I'm retired and have plenty of passive income to live on. We are buying a new house and I need about 25K more cash for the down payment. I'm in the 24% tax and 15% capital gain. I have the following to get money from.

401K
Trad IRA
Roth IRA
Taxable account Index fund
Taxable account Lifecycle 2020 ( this has lagged my other investments the past several years as it became less aggressive)

I do not need this money (about 1.2 million)

I'll get about 300K 2-4 weeks after we buy this new house (will sell our current house)

I'm thinking of cashing in my Lifecycle2020 as it is small (40K) and that removes one account from my tracking system.

Curious if anyone has some thoughts on this plan?
Why not put less money down? Why put anything down? I personally would just ask my brother or dad to spot me 25K and he’d charge me a large case of beer in interest for the 2 week holding.

If you have to sell, the lifecycle fund seems reasonable
VTSAX and chill

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