Is this all in restricted company stock or a single asset? I think there are two separate issues. The first is what you should do with this investment and the second is whether you should buy the house cash. If the investment is volatile that means you are at higher risk of losing what you've gained just as quickly as you've gained it. So considering liquidation and putting the money somewhere else (house or broader investment funds) is the first decision.
I've been lucky in the stock market and have about $2.3M worth of positions in my taxable account, which comes out to about $1.7 after federal and state taxes. Part of me wants to "solidify" the gains I've made in the market (majority of gains have come from within the last 6 months alone for assets owned for 1 or more years).
In terms of buying for cash, I'd be concerned that it's essentially all your non-retirement $$. I would not sleep easy in that situation.
I'd figure out what monthly housing expenses you are comfortable with and then find a house that fits accordingly. Ideally you still can get the $1.5MM house, but do it by putting 50-60% down or something like that to get the monthly payment to be in the right spot. Sell the current house and you'd still have $1MM+ in non-retirement funds.
Statistics: Posted by VoiceOfReason — Tue Jul 09, 2024 10:58 am — Replies 14 — Views 1077