Where to park my money for the next couple of years…

“The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone.”

As you may have noticed, my portfolio is defintely cash-heavy. There are two mains reasons for this:
1) I am currently renting and am saving up for a downpayment for a house in the next 2-3 years, and would like to keep the money somewhat liquid.
2) I don’t know that to do with it. I don’t want to be investing in the current trendy idea, and have it bomb right before I find the perfect house. Still…

…earning 2% interest is not going to help my downpayment money grow. I heard you can withdraw money from a Roth IRA to pay for your first home, but after doing some research, I found out that you must wait five years first. I’d like to think I’d be owning my own house by then… However, putting money into a Roth isn’t a bad idea anyways. So, I have decided to fund a Roth IRA. I can put in $3,000 for 2004 and $4,000 for 2005 for both my wife and myself each, as we satisfy the income restrictions this year and the next. Either it stays in there as a great retirement vehicle, or I can pull it out to pay for a house.

Next step: Which brokerage firm to use, and where to allocate my assets – stocks/bonds/REITs/pork futures?




User Generated Content Disclosure: Comments and/or responses are not provided or commissioned by any advertiser. Comments and/or responses have not been reviewed, approved or otherwise endorsed by any advertiser. It is not any advertiser's responsibility to ensure all posts and/or questions are answered.

Speak Your Mind

*