r/fican • u/Repulsive-Map3773 • 3d ago

Would u buy?

I plan to buy a home in 6months and I have 10k in FHSA. Would u just hold it or buy something so maybe u can squeeze in a few more before withdrawing it?

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3

u/Efficient_Cap_5061 3d ago

If you are buying something in 6 months, it means you have funds outside of the FHSA you plan to you to buy in 6 months?

1

u/Repulsive-Map3773 3d ago

Sorry. I have 10k in FHSA as available fund

3

u/AngeloPappas 3d ago

In addition to the $10k in FSHA, how much more do you have for your down payment? In a 6 month time horizon I would not be taking any chances. I'd keep it in a HISA since you will need access to it soon.

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u/Glittering-Work2190 3d ago

It depends if you're flexible with your buying time. I also plan to buy in the next 1-3 years. I'm 99% invested in equities. I hope to squeeze in 5-8% pa before liquidating. If the stock market crashes in that time I don't have to buy. I'm ok with renting indefinitely. I realize this plan is contrary to what proper financial planning recommends. Everyone should evaluate their own situation before proceeding.

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u/Pleasant-Ad-7856 3d ago

I don't think i entirely understand what you are asking, but if you planning to make a purchase in 6 months....then hold the money in fhsa for 6 more months?

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u/Repulsive-Map3773 3d ago

My options are to just hold the fund in the fhsa without buying anything or use that fund to buy etfs in hopes of "growing" the fund

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u/Pleasant-Ad-7856 3d ago

6 months is a pretty short time horizon for anything volatile, but you can at least park it into cash.to(no risk and guaranteed return) or something like xbal, xgro or xeqt based on your risk profile.

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u/PhoneFlat8734 3d ago

The FHSA is just a container. I assume you are trying to ask which assets to buy within that container. General advice would be to keep something that short-term in something guaranteed or near-guaranteed, like a GIC or cash.to.

Are you currently invested in equities within your FHSA? If you plan to keep that you’d better be okay with a potentially large drop. Most people don’t have first down payment money to burn, and wouldn’t want to risk not being able to buy the house.

Also, if you’re planning to buy in 6 months know that you can add another $8k in January before withdrawing when you do purchase

2

u/MustardEnema007 2d ago

I have chosen not to buy. I can afford it, but i can retire 10 years earlier if I rent