Personal Investments • What to do with *invested* down payment $ if I no longer want a house?

I've saved about 25% of my net worth in a short term brokerage account that's 50/50 stocks/bonds. I'd originally intended to use that for a 20% down payment on an apartment. But I no longer think I want one, so long as I stay single. What should I do with the money?

For some more context:

• I'm interested in retiring early but even at my age it's a little far away, so the rest of my portfolio is much more stocks than bonds.
  
  I already have an emergency fund. I'd be open to treating this short term brokerage account as a second tier emergency fund (i.e., only touched after my HYSA is exhausted) but the sheer quantity of cash still feels a bit much.

I'm wondering how should I work to change my asset allocation? Should I sell the investments? Or just keep it and more slowly change my allocation by investing elsewhere?

It's not just that it's 25% of my net worth. Regardless of whether it was 10% or 50% of my portfolio, it's a lot of money. Maybe even more than enough for a down payment unless it's a home for a single-income household of 2, and certainly far more than 1 year of expenses (which I already have saved separately in a HYSA). That's the rationale for selling to buy more stock indices. I don't think my goals will change, and if they do, I'll get a clear signal at least 2-3 years in advance by getting hitched.

But selling the 50/50 stock/bond fund to buy a stock indices seems to go against Boglehead advice, given the churn.

I'm getting heartburn either way - too much money in a conservative fund vs. extra churn. What should I do?

Statistics: Posted by jnv8kk — Mon Sep 30, 2024 7:18 pm — Replies 0 — Views 79

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