Saving for house downpayment

[Anonymous No.12492689]

How should I allocate my portfolio if my goal is to save up for a house downpayment in ~10 years? Pic related will be the starting money. I'll be adding roughly $800/month to it until I have enough saved to afford a 20% downpayment on a decent house. I'd need about 100k in today's market, but house prices will most likely increase while I'm saving.

Pic related is currently full of bullshit from me playing around. My current plan is to initially put 80% in an ETF which tracks the S&P 500 (VOO), 20% in an international bond ETF (BNDX), and to gradually bump up the amount that I'm putting in the bond ETF. Is 80/20 a decent initial ratio? Are there alternative ETFs that I should consider?

I've tried googling this and the conventional wisdom seems to be to put the money in CDs, a savings account, or a money market account. However, the thought of barely keeping up with inflation bothers me and I think 10 years is a long enough time horizon to justify taking some risk.

inb4 crypto - My risk tolerance isn't high enough for crypto.

[Anonymous No.12492695]

>>12492689
Buy some eth and wait 3 years

[Anonymous No.12492728]

>>12492695
I already have some ETH in cold storage. I view it as a lottery ticket, not a serious investment.

[Anonymous No.12492854]

>>12492689
ETF seems pretty safe. you should probably ask /r/investing though, you'll only get people telling you to buy chainlink here

[Anonymous No.12493035]

>>12492728
>lottery ticket
Thick.

[Anonymous No.12493245]

>80% in s&p ETF

Who trained you in finance, a Boomer? Yes put all your monies in at the top of the s&p500 buy the dip!

[Anonymous No.12493246]

Buy a shit ton of snap 2/8 $6 puts and wait.

[Anonymous No.12493318]

>>12493246
>OTM options and very little diversification
Nah, I'm too chicken for that. I don't want to get raped by theta.

>>12493245
If you have a better idea then I want to hear about it.

[Anonymous No.12493337]

>>12492689
Money market account tbqh

[Anonymous No.12493350]

>>12492689
Fyre Festival was some funny shit. Never forget the 6 million trust fund babies forced to sleep in FEMA tents and eat cheese sandwiches

[Anonymous No.12493450]

>>12493337
>Money market
Yeah, that is what google told me to do. I decided against it because house prices in my area are increasing at 4-5% per year and I can't find any money market accounts that pay more than 2.5%. Even someone went all in at the peak of the market in 2007 and immediately got rekt by the 2008 crisis, they'd still do better than 2.5% per year over the course of the next 10 years. It seems a bit dumb to settle for money market tier returns if my time horizon is an entire decade. I may switch to a money market once the account balance starts getting close to my goal.

Please let me know if there is a critical flaw in my reasoning.

[Anonymous No.12493488]

I am in the same boat as you. Buying the dip on a lot of energy and oil stocks (GE, VET to name two) as well as buying some stocks that are going to make a killing in the future (QCOM from 5G, ATVI because it's BTFO for no reason). I also think twitter is a decent buy.

[Anonymous No.12493571]

>>12493318
Your never going to make it if you won’t buy OTM

[Anonymous No.12493784]

>>12493337
I just did a little bit of math. If house prices continue increasing at 4% per year, the money market account pays 2.5% per year, and I save $800/month, then it would take roughly 15 years before I'm able to afford a downpayment. If I can *somehow* make 5% per year instead of 2.5%, then it would cut the wait down to 11.5 years.

>>12493488
The average person who picks individual stocks performs just as well as an index fund minus whatever they pay in commissions and short term capital gains taxes. I'm not any smarter or better informed than the average joe, so I'm probably better off sticking to index funds.

>>12493571
I'd eventually finish saving, even if I only used shitty savings accounts which pay 1%. In my eyes not paying rent = making it. OTM options are not necessary, they're just a risky shortcut.

[Anonymous No.12493797]

>>12493488
>he bought GE

[Anonymous No.12494766]

>>12493450
>house prices are rising 5% a year
Until they don't. Why do you wanna be left holding bags? That 5% appreciation is going to be more than eaten by maitenance, insurance, property taxes, and interest and you'll be lucky if your home value doesn't drop >30% in the next crisis.

Theres no problem with holding cash equivalents through short term tbills at 2.5-3% while waiting for valuations to become attractive.

[Anonymous No.12494783]

>>12493784
Housing prices track inflation you nigger. Just put away money in t-bills and you'll have enough for a down payment once valuations are attractive.

Buying a house because youre scared of prices going up is exactly what people were doing in 05-07.

[Anonymous No.12495458]

>>12494766
>no problem with holding cash equivalents through short term tbills at 2.5-3%
The problem is that I'd most likely need to pay rent for several extra years and end up paying 50k more for the house.

>waiting for valuations to become attractive
This is a bit dangerous. Housing prices increased constantly here for two decades leading up to 2008. If prices dip while I'm saving then I'll view it as a happy surprise, I'm not going to bet on a dip occurring.

>>12494783
>Buying a house because youre scared of prices going up
Nah, my main motivation is that I'd rather start building equity than continue paying rent.

[Anonymous No.12495477]

>>12492689
>downpayment
the term is "down payment", anon
never going to make it

[Anonymous No.12495510]

Buy a house as quickly as you can, unless you live rent free somewhere. You'll be happy you didn and can always pay it off early. If you pat an extra 100 bucks a month on a 30 year mortgage you'll pay it off 8-9 years quicker. I didn't believe it, but it's true. Buying a house was one of the best things I've ever done. Made me feel like a man. Girls love a guy who owns a house too

[Anonymous No.12495530]

>>12495477
Wikipedia seems to think that both spellings are correct. See the first sentence of https://en.wikipedia.org/wiki/Down_payment.. Also, by browser's spell checker doesn't complain about "downpayment". That being said, it does appear that "down payment" is more common than "downpayment".

>never going to make it
Fortunately, my job is to write code, not English.

>>12495510
Yup, that is exactly why I want to start saving.

[Anonymous No.12495770]

>>12494766
30 years from now a house in almost any part of the country will be worth at minimum 5-10 times what it is now. Plus your mortgage, or rent if you will, won't go up much. A $900 a month mortgage payment on $150k will still be under a grand 25 years from now, whereas rent will be like 2000-3000 a month even for a shit hole in 25 years