I’m looking to purchase an investment property within the next year. Rather than shoveling money into my 457(b), I’ve been putting it into a taxable brokerage account so that I will have access to the money to use for a down payment on the investment home. Does this make sense? Ideally I would fully fund the 457(b) and also save up a down payment, but I’m just not in that a position to do that (already have a good sum in the 457 from previous years). I’m looking to keep the investment home (and additional homes) long term.
Yeah, that seems reasonable to me! I’m a big fan of investing in index funds and real estate. Saving money for a down payment to buy an investment property sounds like a great idea. I’d be cautious about what you invest it in though. If the market drops by 50% over the next year it would suck to lose half your money right when you want to spend it on a property! Generally, money you plan to spend within a year should just be kept in a savings account.