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An anonymous caller\u2019s crypto investments have recently skyrocketed to 17 percent of her investment portfolio. Given the volatility of this asset, should she rebalance it or go all in?<\/p>\n
Allison feels antsy holding $1 million in cash with falling interest rates on the horizon. How does she optimize this money while keeping it liquid enough to buy a house on an uncertain timeline?<\/p>\n
Jocelyn wants to buy a house in three years but she\u2019s reluctant to keep her sizable down payment in cash. What if she splits the difference and invests half the money instead?<\/p>\n
Former financial planner Joe Saul-Sehy and I tackle these three questions in today\u2019s episode.<\/p>\n
Enjoy!<\/p>\n
P.S. Got a question? Leave it here<\/a>.<\/p>\n _______<\/p>\n Anonymous asks (at 03:16 minutes<\/strong>): I bought two cryptocurrencies a few years ago intending to keep them at five percent of my total portfolio of equities, index funds, and bonds. Recently, the value of my crypto has skyrocketed, and it now makes up 17 percent of my portfolio.<\/p>\n I\u2019m torn. Should I rebalance back to my original allocation or hold on and see where it goes?<\/p>\n I view cryptocurrency as a highly risky and speculative asset, but I also see its potential for wealth-building. Could you share a framework or guidance for managing this asset class especially given its volatility?<\/p>\n Allison<\/strong> asks (at 29:15 minutes<\/strong>): Over the last year, I sold multiple rental properties and netted $1 million. It\u2019s now in high-yield savings accounts earning around 4 percent. But with rates likely to drop, is there a better way to deploy this money while keeping it fairly liquid?<\/p>\n I planned to use this cash to buy a new primary home in New England. But after a year of looking, the options have been limited, and I\u2019m hesitant to spend that much on a house I\u2019m not in love with. A modest two- to three-bedroom can cost $800,000 to $1 million here.<\/p>\n I like the idea of being mortgage-free, but high property taxes in my desired area would still leave me with a sizable monthly expense, which adds to my hesitation. For now, I\u2019m renting a two-bedroom apartment for $3,700.<\/p>\n Here\u2019s some financial background:<\/p>\n I want to keep this $1 million accessible in case I find the right home, but I feel it\u2019s not optimized sitting in savings accounts. Would it be too risky to invest this money in a two- or four-fund strategy, knowing my timeline is uncertain?<\/p>\n Jocelyn asks (at 5400: minutes<\/strong>): What\u2019s the best way to manage the money I plan to use for a house upgrade in three years?<\/p>\n I\u2019ve saved $250,000 for a down payment on a new house. Our current home is worth $700,000 and locked into a low COVID-era interest rate. I\u2019d like to keep it as a rental property, but I\u2019m open to selling it if it makes more financial sense.<\/p>\n The home I\u2019d like to buy costs $1.2 million. I prefer to put 20 percent down, but I\u2019m flexible and could put down less if necessary. With that in mind, I\u2019m considering the following strategy:<\/p>\n Am I overthinking this? Does this plan make sense, or should I be more conservative and keep the down payment in a high-yield savings account?<\/p>\n Thanks to our sponsors!<\/p>\n Shopify<\/strong><\/a> Quince<\/strong><\/a> NetSuite<\/strong><\/a> TurboTax<\/a><\/strong> <\/div>\n\n
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