In this episode, I talk about why potential homebuyers in Long Island (and everywhere else) who are taking money from their 401K or retirement account should be moving the money to the most conservative account to protect a reduction with your balance in case of the stock market crashes. The coronavirus / COVID-19 outbreak is an excellent example of why this is so important, especially with the number of cases we're experiencing in New York. Ask a question about how I can help you sell your home, or purchase a home on Long Island:
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Many people who use an employer retirement fund often are not aware of what funds they are investing in. Usually, this means your funds may not be as diversified as they could be. Some funds are riskier than others. The riskier funds can have the highest returns, but those funds often have the most considerable risk of loss. But why is this relevant?
If you are looking to purchase a home, and you are looking to take a portion of your money from your retirement account / 401K, you will want to place the money in the most conservative account available to you. The money market mutual fund is usually the most conservative fund.
You want to make sure that whenever you're ready to take that money after you've reviewed it with your loan officer, you want to make sure that money is readily available to you when the time comes. The coronavirus is a perfect example of this right now and has had a tremendous negative impact on the stock market.
If you were to look at your portfolio right now (March 2020), you'll see that your balance has dropped significantly. If you're investing long-term, this is to be expected as the stock market fluctuates over time. However, if you are planning on using these funds short-term to purchase a home, you want to avoid significant dips as much as possible. Why? You may not have the balance in your account that you are looking for, which could make the difference in whether you can purchase a home in 2020 or not. Moving those funds to the money market mutual fund will ensure your funds aren't impacted whenever you're ready to buy your house.
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About Janet Nation
With 17 years as a seasoned real estate salesperson, Janet Nation of Team Nation at Keller Williams Greater Nassau offers both an outstanding level of real estate knowledge and an exceptional level of professionalism.
Janet Nation serves all of Long Island including: Baldwin, Bellmore, Bethpage, East Meadow, Elmont, Freeport, Garden City, Hempstead, Levittown, Lynbrook , Malverne, Massapequa, Massapequa Park, Merrick, Oceanside, Point Lookout, Rockville Centre, Roosevelt, Seaford, Uniondale, Valley Stream, Wantagh, and West Hempstead.
A top producer and a recipient of an Executive Club Award for Outstanding Sales Performance, Janet specializes in residential real estate. As a Buyer's Agent, Janet has developed strong negotiation skills when talking to lenders and in turn has used that flair to help negotiate favorable terms for her clients. As an Listing Agent, Janet has the ability, to critique a home the same way a buyer would then prepare her sellers accordingly for a timely sale. People trust Janet with their single largest asset, it's a responsibility she takes very seriously. She focuses on relational transactions and enjoys building relationships and selling homes.
#LongIsland #RealEstate #Coronavirus
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