AIE 182: Equity Exchange: Selling Stocks to Buy a Home
Adulting Is Easy: Making Personal Finance & Real Estate Easy
English - June 11, 2024 11:00 - 27 minutes - 25.1 MB - ★★★★ - 7 ratingsSelf-Improvement Education Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Before we talk about selling stock to buy a house, we must understand what a stock is, and how you can buy and own them, so that’s where Lauren and Landon start. They also go over what a brokerage account is, versus your retirement accounts. Sometimes, even for long term investors, short-term needs and wants start to outweigh long-term needs and wants. For example, it may become more important to you to buy a home than hold your stocks. Also, interest rates mean that putting more down pay be a good way to go to keep your payment down. So, Lauren wonders what the interest rate is that make it make more sense to put more into your home than have it invested in the stock market. It truly depends. Don’t forget, there is a possibility you can refinance later. And by the way, Landon believes in 30-year fixed mortgages. If you sell stocks, you pay taxes. What are the implications? Landon says that you decide what you want to do, then taxes can tell you how to do it. You shouldn’t make decisions based on taxes. Note that there is no withholding on stock sales. Lauren then asks about using retirement stocks to buy a house, like 401k loans. They briefly talk about taking $10k out with no penalty, but nowadays that just doesn’t help much. Finally, Landon agrees with Lauren that your primary home is an asset.
If you liked this episode, you’ll also like episode 90: Stock Market History with Brian Feroldi or 115: Dividends with Dividend Dream.
About Landon:
Landon Loveall is a certified financial planner and dedicated advocate for tech professionals to increase their wealth through financial, tax and stock option planning. He is a partner of KB Financial Advisors which has been specializing in maximizing stock options for tech employees since 2014.
Connect with Landon:
https://www.linkedin.com/in/landonloveall/
https://kbfinancialadvisors.com/
Connect with Lauren:
https://twitter.com/AdultingIsEasy
https://www.instagram.com/@adultingiseasyreal
https://www.housemoneymedia.com/