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Old 11-18-2004, 08:40 PM
Leigh Menconi
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Default Re: Question

"John A. Weeks III" <john[at]johnweeks.com> wrote in message
news:151120041818116425%john[at]johnweeks.com...
- quote -

> In article <H-mdnaRCvOWsogTcRVn-sA[at]comcast.com> , noidea1263
> <noway[at]nospam.comorg> wrote:
> > I am interested in finding out the best ways to begin accumulating money
> > to
> > buy a home. Let's say that the timeframe before purchase would be 5-10
> > years. Are there any investments out there that would maximize my saving
> > for a home?

> The answer is "yes" there is an investment that will maximize your
> savings. The problem is that you will not know what it is until
> the date when you take the money out. No one knows what the future
> will bring.
> As a result, you have to play the averages. The stock market
> has done just over 11% on average, but it is more of a long term
> investment. Money market, CD's, and bonds return far less, but
> are far less likely to lose in value over your 5 to 10 year time
> horizon.
> It boils down to what kind of rate of return you need, and how
> much risk are you willing to take to get that rate of return.
> -john-


Unless you already have a lump-sum that you'll be investing to make the
downpayment 5-10 years from now, you probably don't need to worry about the
investment return quite yet. The only thing you really have any control
over is how much you save. So maximize your earnings and savings and
minimize your expenses and be careful about locking the money into anything
in which you'll be penalized for withdrawing in case you need the money
sooner.

Leigh

  #1  
Old 11-16-2004, 03:11 AM
Ron Peterson
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Default Re: Question

noidea1263 <noway[at]nospam.comorg> wrote:
- quote -

> I am interested in finding out the best ways to begin accumulating money to
> buy a home. Let's say that the timeframe before purchase would be 5-10
> years. Are there any investments out there that would maximize my saving
> for a home? Thanks!


The homebuilding stocks should do a little better than keeping up with
price homes. BZH and SPF should be OK.

Another alternative is to invest in REITs, but I don't have any
recommendations.

You may be subject to some interest rate risk that far in the future,
So, it may be to accelerate your purchase with a condo and then upgrade
to a house later.

--
Ron


 
Old 11-16-2004, 12:13 AM
John A. Weeks III
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Posts: n/a
Default Re: Question

In article <H-mdnaRCvOWsogTcRVn-sA[at]comcast.com> , noidea1263
<noway[at]nospam.comorg> wrote:

- quote -

> I am interested in finding out the best ways to begin accumulating money to
> buy a home. Let's say that the timeframe before purchase would be 5-10
> years. Are there any investments out there that would maximize my saving
> for a home?


The answer is "yes" there is an investment that will maximize your
savings. The problem is that you will not know what it is until
the date when you take the money out. No one knows what the future
will bring.

As a result, you have to play the averages. The stock market
has done just over 11% on average, but it is more of a long term
investment. Money market, CD's, and bonds return far less, but
are far less likely to lose in value over your 5 to 10 year time
horizon.

It boils down to what kind of rate of return you need, and how
much risk are you willing to take to get that rate of return.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

  #-1  
Old 11-15-2004, 11:05 PM
noidea1263
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Posts: n/a
Default Question

I am interested in finding out the best ways to begin accumulating money to
buy a home. Let's say that the timeframe before purchase would be 5-10
years. Are there any investments out there that would maximize my saving
for a home? Thanks!


 

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