Key insights
- A 34-year-old is considering shifting a large portion of their cash savings earmarked for a home purchase into a brokerage account to invest in the S&P 500. This reflects a broader sentiment of weighing the opportunity cost of holding cash versus participating in potential market gains. While individual, this decision mirrors the risk appetite of some investors, potentially adding marginal bullish pressure to equities.
34, single. income is $150-250k/year, depending on commission. 401k (currently at $415k) is maxed out, no longer qualify for roth ira. mega backdoor roth through 401k. about $520k in money market (3.15%) for emergency/eventual down payment on home.
i love the idea of buying a home in cash, or paying as much as i can up front, but i know i'm losing out on time in the market... so i'm thinking i should open a taxable brokerage and invest in s&p 500... i have no idea when or where i'm going to buy a home.
should i move $300k into a brokerage, keep $20k for emergency, and settle for $200k as a 20% (at least) down payment? or should i do less than $300k?