What do we do with home sale proceeds when there will be years before we buy another home? Thanks for all you do and congrats on the new show. Thank you, Ryan. But what would you have to say?  CU, I think sometimes people like they're selling the house so that they can get

into a bigger one, right? But that's not the case here. So what would you, what, what should he be thinking about? Yeah, I hate to answer a question with, with another question, but one of the other questions I'd have for you, Ryan, is you said I'm not going to need, I'm not going

to buy another house for a couple years. How many years is a couple of years? CU, I think probably realistically that is uh going to affect the answer that we're going to give you, right? If you are thinking that you might need to buy a new house and you're going to need a

large chunk of these proceeds to be able to get into the new house and that's going to happen the next two, three, even four years, I'm going to argue you probably need to park that in liquid, high-yield, readily available cash. If, however, you said I don't really know

when I'm going to buy another house. We're going to rent for a while or maybe we're going to travel, we're going to do whatever and buying the new house might not be for 5, 6, 7, 8 years in the future.

Well, then I would argue that perhaps those dollars could be better utilized growing for the future in some sort of risk-on type investment, but I really think the timeline to the new house is going to dictate what the right move is. And also, I have a, a mindset that

sometimes when you come into money and now you don't have an immediate need for it to get you into your new place to live, cuz maybe like I, I have a family member that sold a house, had some equity, then they were they're living overseas for a few years, so that's it's kind of

similar to this situation. So I kind of I know somebody resembles this and the first thing I would say is when you have this lump sum coming and you know you immediately don't need this for shelter, let the financial order of operations, the foo for you, be kind of your guiding

light because maybe there's a chance that you have some debt that's been building up in the background and and you're paying over 20% interest, that windfall of money that came from the equity of your house, you could catch it up right now and pay off that high

interest debt. Maybe you've been kind of on the the shallow end of your emergency reserves, you only had 2 to 3 months when you really should have 5 to 6 months of emergency reserves. Let's shore up how much cash you keep in reserves and put that in the high-yield savings

account. Maybe for the last two years you've underfunded your Roth IRA and you haven't been maxing that out or getting the HSA if you're on a high-deductible plan. Let's shore up step five now. Maybe by the time you get to step six,

this is where I would, when you triage steps one through five, I think are a given, you have to immediately see if you've been neglecting those steps and you now have this windfall, I think 1 through 5 are very easy through the financial order of operations to go.

check it out and by the way go to money.com/resources if you're new to our content, you can download that completely for free. But step six, kind of maxing out your employer's retirement plan, now we finally are at the point where we say, when are we actually going to use this

house and if that vision is fuzzy, you know, there's nothing wrong with coming up with a balanced approach. Maybe you, you beef up your emergency reserves beyond the six months, just so you know you have some powder money just in case the opportunity of a lifetime comes your

way. But if you know that you're not going to need house money for three, four, five years, maybe you start coming up with a diversified portfolio that works through this and if it doesn't fit in because you know you'll need it, maybe you set up that after-tax account begin

with the end in mind. That's where, remember the whole part of when we get to hyper accumulation is the thing that makes it unique is that steps one through six, a lot of times it's keeping you out of emergency situations and also maximizing tax saving opportunities. Step

seven is that first step where you actually say, how am I actually going to use this money? I think that the unique thing with the housing proceeds, especially I'm assuming this is probably a pretty big lump sum of money, is to think about begin with the end in mind

and how you're going to use it. So go ahead and jump into the three buckets, maybe you need to be boosting up after-tax money instead of the, the, the tax retirement savings because you're going to need it for a house or some other need.

Do THIS When You Sell Your Home!

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The Money Guy Show

Inquiry about handling home sale proceeds before buying another house.

Emphasis on the timeframe until the next house purchase.

The timeline significantly impacts investment strategy.

Short-term (2-4 years): liquid, high-yield investments recommended.

Long-term (5+ years): risk-on investments are a possibility.

Prioritize debt reduction (high-interest debt).

Increase emergency reserves to 5-6 months.

Maximize retirement contributions (Roth IRA, HSA).

Contribute to employer's retirement plan.

Long-Term Planning and Investment Strategy

Consider a balanced approach if the timeline is uncertain.

Increase emergency reserves for unforeseen opportunities.

Diversified portfolio if the house purchase is far off.

Hyper-accumulation: steps 1-6 focus on emergencies and tax savings.

Consider the ultimate use of the money (e.g., house).

Prioritize after-tax accounts if needed for specific purchases.

Do THIS When You Sell Your Home!

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