#MoneyMoves: What should I do with the proceeds from selling my condo? đź’¸
Let me paint you a little picture: Two years ago, I made a drastic move by gifting almost all of my 401k to help my daughter’s family buy a house. Yes, I took a hit with those crazy taxes, but hey, family first, am I right? Now, I find myself sitting on a cool $200k from selling my condo. The thing is, I have no clue what to do with it! Help a financially responsible, non-risk-taking mama out, will ya?
I’ve got a decent emergency fund, some savings accounts here and there, and a modest 401k growing steadily. I’m not looking to dive headfirst into risky investments, but I want to make sure I’m making smart moves for my future. Any ideas on how to make this money work for me without giving me major anxiety?
Share your wisdom, suggestions, and maybe a funny story or two – because who couldn’t use a good laugh when talking about finances? Let’s make these dollars count together! 💰✨ #Finance101 #MoneyTalks #InvestmentIdeas #HelpAGirlOut
Paying the peak tax rate on your 401k lump sum withdrawal vs taking a HELOC on your condo likely cost you a good $15-20k in unnecessary taxes but the past is the past.
Sell the condo, live off of the proceeds while maximizing your 401k contributions plus catchup/IRA contributions plus catchup/HSA contributions + catchup to reduce your tax burden. Should be plenty of extra cash to set aside for ‘just in case’ your housing situation needs to change. Lots of reasons where no one is the bad guy that things might need a change in the future.
A ‘target date’ fund will offer you the flexibility and security appropriate for your age. You’re 63 so some risk isn’t unwarranted. You have money you’ll need in 5 years and god willing you will have money you’ll need in 30.
I agree with the other top-level comment that you ought to invest a sizable portion of the proceeds, and a target date fund is good advice.
Putting enough money to cover a year or two of expenses into a HYSA (or money market fund, CD, treasury bill, etc.) can offer a lot of peace-of-mind and still allow you to invest most of your money.