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Ms Susan Lines
I am 57 years old. I have approximately $90K in a 401k and ING account. I am selling a home in Idyllwild, CA. . I work in La Jolla, CA, earn $65k. I live in La MEsa, CA and pay rent of $1285.00. After the sale I will realize about $111k. I am looking at small homes in La Mesa within the price range of $450k. I have been pre-qualified - no other debts. After I put down the 20% and pay for closing cost, I will have about $15k in reserves. 1) Should I buy now? Homes in La Mesa are high, but remaining stable, and the forecast is that they will remain stable for sometime. I am also looking into foreclosure property??? If I buy now, I would not be able to contribute to my 401 until next year. OR 2) Should I save for a year about $1000k a month to increase my reserve. I would also contribute to my 401 of which my employer will match up to 3%. I would be contributing 6%. Which is best. I plan to close the escrow in the fall, so I will have the majority of this year's tax advantage of owing property. If I don't purchase for another year, then I will pay more taxes unless I contribute more to the 401 and tithe 10% of my income. Help! please - which is the prudent way to go. Also: I am working for a new bank of which the Chairman of the Board has been very, very successful with banks outside of California. I have been offered a stock option. If I don't buy this year, I thought maybe it would be a good idea to exercise my stock options costing $10,000? What would you advise? Thank you - Susan
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