Should we sell Dupont condo?

[Anonymous]

Please do not do a 60e/40f portfolio, right now. I understand people think MPT is the way to go but we are not in a traditional market. Get a financial plan run for you and have a portfolio tailored to your risk tolerance and time horizon. It may come out 60/40 by happenstance but don't put it in the cookie cutter.

[Anonymous]

Anonymous wrote:so your net worth right now is
assets

Mont Co home $1,100k
Dupont condo ? I'll assume = $400k
Savings $100k
401(k) accounts $100k

Liabilities
Mortgage on Mont Co $200k
Student loans

I would sell the Dupont condo, keep the Mont Co mortgage, and invest the condo proceeds in a 60% equity / 40% fixed income portfolio, with globally diversified equities.

The $100k savings are your "rainy day" fund and should be in cash/ short term fixed income.

In the heart of Dupont? How about just under $1m?

[Anonymous]

OP, my observation is that if you just moved to MoCo a year ago and your house is worth $1.1mm and you only have a $200k mortgage, that means you put $900k of cash into your house? Which seems way out of line with savings of only $100k cash and $100k 401k. Unless I'm missing something, I would think you should have more in 401k at least. Maybe you have a pension or something?

[Anonymous]

Anonymous wrote:

Anonymous wrote:so your net worth right now is
assets

Mont Co home $1,100k
Dupont condo ? I'll assume = $400k
Savings $100k
401(k) accounts $100k

Liabilities
Mortgage on Mont Co $200k
Student loans

I would sell the Dupont condo, keep the Mont Co mortgage, and invest the condo proceeds in a 60% equity / 40% fixed income portfolio, with globally diversified equities.

The $100k savings are your "rainy day" fund and should be in cash/ short term fixed income.

In the heart of Dupont? How about just under $1m?

Unless it's a super-duper condo, $1m is unlikely.

When we were thinking about selling our Dupont condo, the real estate agent told us not to because we could use it as a college fund. Basically, when the kids start college, you can take out a loan against your equity in the condo (it's a little different from a home equity loan if this is an investment property that you rent out, but it's doable). By the time our kids hit college, the condo would be mostly paid off and you use the rent to cover the condo fees and payment on the loan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:so your net worth right now is
assets

Mont Co home $1,100k
Dupont condo ? I'll assume = $400k
Savings $100k
401(k) accounts $100k

Liabilities
Mortgage on Mont Co $200k
Student loans

I would sell the Dupont condo, keep the Mont Co mortgage, and invest the condo proceeds in a 60% equity / 40% fixed income portfolio, with globally diversified equities.

The $100k savings are your "rainy day" fund and should be in cash/ short term fixed income.

In the heart of Dupont? How about just under $1m?

Unless it's a super-duper condo, $1m is unlikely.

When we were thinking about selling our Dupont condo, the real estate agent told us not to because we could use it as a college fund. Basically, when the kids start college, you can take out a loan against your equity in the condo (it's a little different from a home equity loan if this is an investment property that you rent out, but it's doable). By the time our kids hit college, the condo would be mostly paid off and you use the rent to cover the condo fees and payment on the loan.

Why not take a home equity loan against your primary residence?

[Anonymous]

Anonymous wrote:OP, my observation is that if you just moved to MoCo a year ago and your house is worth $1.1mm and you only have a $200k mortgage, that means you put $900k of cash into your house? Which seems way out of line with savings of only $100k cash and $100k 401k. Unless I'm missing something, I would think you should have more in 401k at least. Maybe you have a pension or something?

Our savings also include the condo - which is paid off. That's why we're thinking of taking the $400-$500K from the sale (after we pay off primary mortgage) to invest elsewhere.