31 and planning to start saving

[micaaronfl]

hi all,

i have 2 roth ira's i was wondering what else i can do on a limited budget right now - trying to save for a house.

also how much should i be putting in the two ira's.

[Mill]

you cant buy a house with IRA's

[samclem]

Quote:

Originally Posted by micaaronfl hi all, i have 2 roth ira's i was wondering what else i can do on a limited budget right now - trying to save for a house. also how much should i be putting in the two ira's.

Welcome.
The first investment you should make is the purchase of a shift key for your keyboard. It won't cost much, and is a thoughtful gift that everyone who reads your words will appreciate.

It's hard to know how much you should be saving, it depends on your age and goals. Saving more is generally better. Many people have been able to retire early by saving 20 percent or more of their income. Whatever you save will be important, whether it is a little or a lot.

Again, welcome. There is a lot of good information on this board, I recommend you poke around over in the FAQ forum portion of the board and see what interests you.

[ziggy29]

Quote:

Originally Posted by Mill you cant buy a house with IRA's

Not entirely true. You can always withdraw your own *contributions* from a Roth without taxes and penalties to raise the down payment. Not that this is necessarily a good strategy, but you can do it.

[micaaronfl]

oh no im sorry im saving seperately, but that is why im on a budget.

so im looking to expand my retirement portfolio on a budget.

i have two roth IRA's at this point looking to expand. I am also looking to see how much at my age i should be contributing to those ira's monthly.

[ziggy29]

Quote:

Originally Posted by micaaronfl I am also looking to see how much at my age i should be contributing to those ira's monthly.

I would say as much as you can afford to do up to the limit (about $416 per month).

How much do you need to save for a down payment? How much can you save for a down payment after maxing out a Roth contribution? Do you have an emergency fund in place?

While I always look at an IRA as a long-term retirement investment first and foremost, because you can withdraw your *contributions* (not earnings) tax free and penalty free, if you have competing savings goals and one of them is a Roth, it's probably good to fund the Roth first because of that flexibility and then put the rest in savings. Once you have enough outside the Roth to meet your savings/emergency fund needs, then I'd get more aggressive about the investments in the Roth. But if there's a chance you may need to pull the contributions out for a shorter-term need, I'd keep the investments conservative in the Roth until I knew there was little chance I'd need to tap it until retirement at 59.5 or older.