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Updated almost 6 years ago on . Most recent reply

User Stats

40
Posts
11
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Elliot Marszalek
  • Ephrata, Pa
11
Votes |
40
Posts

Stocks or stay liquid?

Elliot Marszalek
  • Ephrata, Pa
Posted

I've been saving up cash for a down payment whenever I can find a good deal but it bothers me to see the money just sitting there and not being put to work making more money. Normally I'm investing as much as I can after each paycheck into stocks and with the market being down it looks like a good time to buy in on some reliable stocks that pay dividends. If I invest the cash I have saved up in stocks and then find a deal I'd be breaking one of my main rules which is once money goes into my stock portfolio the money is untouchable and only the income generated from it via dividends is allowed to be taken out. (Normally even that is reinvested through DRIP programs and such). What would you do? Do I invest it and then break my rule to pull it back out when I find a deal or just keep letting it build up as I continue my search for my first house hack/investment rental property?

  • Elliot Marszalek
  • Most Popular Reply

    User Stats

    99
    Posts
    42
    Votes
    Watson Hilaire
    • Melbourne, FL
    42
    Votes |
    99
    Posts
    Watson Hilaire
    • Melbourne, FL
    Replied

    @Randy Bloch nailed it. Any money you place in stocks should be considered to have at least a 5 year time horizon. (hint: I am a value investor/ buy and hold). Look at the correction the stock market had over the last two weeks. You don't want to find your house hack property only to find your down payment you placed in stocks is down 15%. Charlie Munger has said what has made him and Warren so successful is their ability to sit on money when others felt the need to act. So leave your down payment in your saving account. When you find that house hack, it will more than make up for lost dividends you would have received in the stocks market. 

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