patrick.net

Thanks for the reply, your feedback is always appreciated.

My current strategy in preparing for DP is to continue investing in Stocks / MF / 401K but shift some of the stock investment to MF in the event that I'll need to sell stocks to cover the DP.

I may be overthinking this and should just continue with the plan and if a DP pops up, well then, handle that when the time comes.

Thanks.

Leave the money in a tax advantaged retirement account although you want to diversify and maintain an appropriate asset balance as you age. Even professional money managers have problems consistently beating the market and you're not one of them.

With historic (over the last 50 years) S&P 500 returns that money would grow to $260Kin current dollars over the 40 years remaining to your retirement (I'm guessing about where you are in life) which translates to $10K/year of income.

From what I have read it is not advisable to save for a downpayment by investing in equities. There's just simply not enough time for you to recover from a market setback if that happens. The best way to save for a downpayment is through a good old fashioned savings account or an appropriate time horizon CD. I am not saying that it's impossible for the investing in stocks for DP to work out, it's just very risky and that risk is highly recommended to avoid.