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Originally Posted by BigRichard
I asked this before but I think I might take a bit of a risk here possibly. We have a very substantial chunk of change I have sitting in a 2% savings account that we got from selling our house and plan to use it for a down payment on our next house. I don't think we will be buying really soon here so I am really considering dropping it into stocks/index funds if the market drops much more and riding it out for a little while. It could bring in a chunk of money. Would you do it?
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I'm an aggressive investor, but gosh, I don't know if I'd do that. If you need it for a down payment, you wouldn't want to lose any part of it, and I don't know if the upside is worth the risk. I'd probably keep it in a no-risk account like you're doing.
I guess it's a matter of risk tolerance. We just lost 10 percent of our stock values in three days. What would you do if that happened while your money is in it? Would it be an annoyance or would it derail the home purchase?