1941: Ask Farnoosh: My Best Home Buying Advice, Investing for a "Mid-Term" Goal

What It Covers

Farnoosh Torabi addresses listener questions about home buying strategy in 2026, investing for mid-term goals without defined timelines, balancing business ownership with retirement investing, and financial preparation for starting a family. She also covers current market conditions including Bitcoin's 50% decline and January 2026 layoffs reaching highest levels since 2009.

Key Questions Answered

• •Mid-term goal investing: For goals 5-10 years out without specific purpose, create a flexible TBD bucket with 50% stocks and 50% bonds allocation, or use laddered five-year CDs. This middle-ground approach provides more growth than liquid savings while maintaining less risk than retirement accounts. Automatically contribute monthly and reassess allocation annually as goals clarify or life circumstances change.
• •Business owner retirement strategy: Entrepreneurs running businesses with employees and overhead must invest outside their company despite viewing the business as their retirement plan. The business represents concentrated high risk, requiring diversification through stock market investments with conservative allocations like 50% stocks and 50% bonds. Calculate stock percentage using 110 minus your age formula to balance business risk with portfolio stability.
• •Emergency fund structure: Maintain four to six months of fixed living expenses in an accessible account, prioritizing liquidity over yield. With January 2026 layoffs at 108,000 (highest since 2009) and cooling job market affecting consumer confidence and wage growth, this cushion becomes essential. Accessibility matters more than high-yield returns for emergency savings during economic uncertainty.
• •Family planning finances: Focus financial preparation on the first year only rather than long-term projections. Research company paid leave policies for both partners, then calculate childcare costs (currently $30-40 per hour for NYC nannies). Build financial cushions for gaps in childcare arrangements, daycare waitlists, and unexpected changes. Simultaneously negotiate work flexibility now to establish time freedom before the baby arrives.
• •Home buying mindset: Remove forever home pressure from purchase decisions, recognizing life changes will inform when to move. Before browsing listings, clarify motivations: seeking predictability, building equity, and control versus valuing flexibility and avoiding maintenance responsibility. Talk to lenders early to understand true borrowing power, required down payment, and resolve credit issues before falling in love with properties you cannot afford.