We are in the process of sellijng our house in a hot market. We PCS this summer and will be in base housing next duty station. We are expecting a significant amount of cash after the sale, as our home appreciated in value from when we bought.
Our goal is mostly preservation of capital; when we go to buy a home again in the next 3 to 7 years this money will make a good down payment or a potential nest egg if the housing bubble collapses and we use the VA loan.
No debt, max TSP as well as Roth IRAs for both my wife and me. We have 529s for the kids, emergency fund of 6 months, and I do put $100/month into FXAIX.
I would like to invest some of this more than via HYSA or CD. Any ideas? I am willing to take some risk on maybe 5 or 10% of this money but would like to keep the rest low risk.
Again, the goal is to not touch this money. No lifestyle creep, etc. Thanks for any ideas.
Where to park profits from a home sale for future use?
byu/Allforthe2nd inMilitaryFinance
Posted by Allforthe2nd
2 Comments
Putting that 10% into FXAIX seems appropriate for the risk tolerance you described. You could also split it between FXAIX and a global market index fund for slightly more diversity without increasing your complexity too much.
Are you going CONUS? Why would you not buy again so you can keep building equity? Base housing is just throwing BAH away