My portfolio has done very well this past year, particularly with an index fund that has grown to be a very large size. Theoretically, myself and my partner could fund our entire home sale with proceeds from that fund. I have a few other accounts that are IRAs and 401k for retirement that won't be touched.
As we are searching for a home, the area we are in has a very small amount of inventory. So far we haven't been able to find anything. We are worried it may take some time, perhaps even 6 months to a year.
My partner is having considerable anxiety about the market dropping back down and us losing our "house money". He thinks there is going to be a recession and we will be waiting 10 years to get back to this point. He thinks we should plan for a certain point, like if the value drops 50k for example, then we would withdraw the money that is left and keep it safe, partially in gold and silver.
Obviously I know that index funds are high risk and that losing the money is always an option. In my mind, if we were unable to buy the house in cash, we would settle for a less expensive home. We would get a mortgage with a small down payment from the index fund, keeping the majority of money in the market to ride out the recession.
Are there any less risky options I could put the money into? Do I pull it or leave it as is?
Submitted June 09, 2021 at 07:13PM by lorelatte https://ift.tt/3pCVN6M
