Scenario Advice

[SeeYaLater]

Wife and I are looking to purchase a house for $400K by putting down around $150K (profits once we sell current condo). Our combined monthly income is about $6500 (take home).

We have no CC balances or loans besides 1 car payment ($350) and have about $100K in an assortment of CDs at ING.

Would anyone do anything different? We want to put as much down as we can on the house to minimize our monthly payments. Is our $100K in CDs at ING our best bet, or should be diversify?

Thanks for any help you can provide,
SeeYaLater

[Fern]

Re: Scenario Advice

It makes sense to me. I was in a situation similar to yours about 10 years ago when i bought my house. I put down roughly 45% in cash becus while i had decent savings, my current salary was low, and in wanted reasonable monthly payments.

I wouldn't have all that money in CDs, it's way too conservative. Don't know your age, but if you're in your 20s, 30s or 40s, perhaps even early 50s, you really can't afford mediocre returns becus you'll be living a long time and the # of years in retirement will be longer, too. CDs are "safe" money. But i would take the bulk of it and invest in a variety of conservative stock funds. Again, depends on your ask, how soon you'll need that $ and risk tolerance.

[Fern]

Re: Scenario Advice

In the 3rd and 4th quarters of 2005, we were running at well over 3% inflation. What do your CDs earn? After subtracting for inflation, you could be approaching a near negative return!

[Ima saver]

Re: Scenario Advice

I would agree with Fern's advice. I would put about half that 100K in a few stock funds also, keeping the other half as an emergency fun.