Age 50. Recently sold my home, netting about $140K. Have some questions about short- to mid-term savings, risk vs. reward, etc.
I'll try to keep this tight. I know there is decent info on Reddit and elsewhere, but I've found MeFi's community more focused and helpful.
I recently sold my home in the Midwest, netting about $140K, and moved to the Pacific Northwest. Housing costs here are far higher - perhaps 50-65% more to purchase equivalent property in my community. I'm currently a renter.
I have separate funds (Roth IRA, state pseudo-pension, social security) to rely on for retirement.
I'd like to invest this money in a way that balances risk and reward, and look to purchase property within 10 years - likely a condo, apartment, or house with an ADU (Accessory Dwelling Unit, a.k.a., mother-in-law unit).
Initial thoughts are splitting it in three 'buckets'. I use Vanguard as my broker.
* Short term, lower risk investments like CDs.
* Total market index funds
* Higher risk small cap or specialized indexed funds
What do folks think about this strategy? Anything I should consider, anything I'm missing? One thing I'm assuming is that growth of my investment will outpace housing prices. But if that is false, if housing prices climb at 12% a year, for example, it will be hard to afford anything in the future. |