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Raid Roth IRA accounts to be a first-time homeowner (Age 26)
This is probably the biggest debate I had ever done but I really want to be homeowner in my life now. Also there are extra costs with the house from buying furniture, appliances, doing repairs, etc that is understood by me. Currently, I'm living with family right now and don't feel like renting an apartment as rates in Houston are going up at a significant rate. I would like to be a homeowner in the next 12-18 months from today.
Currently, I have about 28k in a Roth IRA (5 years active), 30K in Roth 401k (3% match), 9k in HSA, 3k in brokerage account, 4 months worth in salary of emergency savings (job security is very high), and earn about over 45k per year depending on quarterly bonuses. Only debt that is active would be a car loan with 6K left at 2.99% (that will be paid off before I purchase the house)
The big dilemma would be should I take some money of my Roth IRA to help fund the down payment on a first-time home ownership? Even though I'm a young still, I have a lot time on my side to still contribute to the max at least but understand I'm losing out on tens of thousands of dollars on future me when I'm older. Understand that it's not a lose-lose situation as I'm using my money from the Roth IRA to put equity into the house.. Brain tells me to hold off on it but emotionally I need to do it for wanting to do home ownership and independence reasons cause I don't want to live at home forever. Finally depending on the purchase price, probably raid from 5k - 15k from the Roth IRA and not take the whole amount out.
Would do you guys think?
Currently, I have about 28k in a Roth IRA (5 years active), 30K in Roth 401k (3% match), 9k in HSA, 3k in brokerage account, 4 months worth in salary of emergency savings (job security is very high), and earn about over 45k per year depending on quarterly bonuses. Only debt that is active would be a car loan with 6K left at 2.99% (that will be paid off before I purchase the house)
The big dilemma would be should I take some money of my Roth IRA to help fund the down payment on a first-time home ownership? Even though I'm a young still, I have a lot time on my side to still contribute to the max at least but understand I'm losing out on tens of thousands of dollars on future me when I'm older. Understand that it's not a lose-lose situation as I'm using my money from the Roth IRA to put equity into the house.. Brain tells me to hold off on it but emotionally I need to do it for wanting to do home ownership and independence reasons cause I don't want to live at home forever. Finally depending on the purchase price, probably raid from 5k - 15k from the Roth IRA and not take the whole amount out.
Would do you guys think?
Last edited by h-town info; 02-09-2013 at 05:40 PM..






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