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Discussion
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I am asked to sell stocks by my husband to buy a house
updated 2 years, 4 months ago
2 Members
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13
Replies
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Talk to a financial advisor. That’s a lot of money! Make sure you are comfortable with how it is invested.
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Please speak to a financial adviser. Tell them not only about your stocks, but about not having any lines of credit in your name. Your situation sounds complicated from a financial perspective, and professional advice would be best.
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I would be reluctant to cash all of it in. Around half may be an option to consider. Personally I would approach it like this – sell the stocks when they are high (witch is now), and wait till the bubble burst on the housing market. The housing market is crazy everywhere, maybe there are a few exceptions. Waiting a bust out could take a year or two.
But I completely agree with the other commenter – that you are going to overpay and then the house is going to be worth much less wen the bottom fails out if you’re in the US.
The idea is make as much $$ as you can from the stocks (sell high), and buy the house low (not in a bubble). Good luck! -
How much money does your husband give? How do you wanna spend on the house? How are credit conditions for you. It’ not so wise to take a loan while having lot of money. In these low interest fees it may be different.
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Hi friend! I highly recommend looking at r/PersonalFinance for advice and similar stories as well. Blessed be! ✨
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I agree a professional would likely be best, but I’d check out r/personalfinance too and maybe post there.
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Check with your library. They can’t give you advice, but they may have resources that could help or offer financial literacy courses. Your bank may offer financial advising.
I think you should probably trust your instincts, but it’s always a good idea to do some research to make sure what we’re feeling is instincts and not just fear or something else.
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Save some for taxes you’ll have to pay after you cash out- if you do it.
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Definitely talk to a financial advisor. We recently refinanced our mortgage, and afterwards talked to our financial advisor about whether it would be wiser to put the monthly savings back into the house to speed up the payoff or to put it in investments. He told us that since the mortgage rates are so low, it made more sense to put that money somewhere else. Your situation may not be the same, but even though most investments are not earning a ton, if you have a good portfolio, it’s probably outpacing whatever mortgage rate you would get (I believe it’s around 3%). Plus, you’ll start building up equity and you’ll feel a lot more secure with the financial cushion you have.
I don’t want a monthly house payment, because I’ve paid cash for a house before and it was great. However, the advisor’s advice makes total sense to me.
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From my understanding, now is not the time to buy. It is a “sellers market” and “the bubble is about to burst” are things I’ve heard. Apparently your investment would be worth less when this happens ie you pay 400k for a home and then within a year it is only worth 250k. Of course this is only applicable in the US, and only if I’ve understood correctly lol
Having said that, I do not know enough about stocks to know how all of this would effect investments. Basically I’m illiterate when it comes to all financial matters, I’m a lifelong renter with no investments lol I just listen to what others say.
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Keep an open dialogue with your husband. That said, this is my situation: I was leaving my husband. I had been a SAHM for about 5 years, but I had worked before having children so I had some money in a 401K in my name. I decided to cash it out and buy a house outright. My reason was to take the pressure off myself to hustle every month to pay rent or a mortgage. You can take money out of a 401K without penalty for your first home purchase. Financial advisor said don’t do it because over time you’ll miss out on compounding interest. That advice was in their best interest to make a profit off of my money. Because in reality, the stock market is not always up. Then I put the money back in over 8 years. This makes better sense to me because I would’ve been hard pressed to pay off a house loan in 8 years because of loan interest and uncertainty about employment.
All the best! -
Ok thanks!
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Don’t cash it all in.
But from my understanding he pays for everything now which is what enabled you to buy more stocks? Probably best to get a good grasp of the whole budget, including why your stocks are important to you and go from there.
