Dreaming of Freedom
Recycles dryer sheets
- Joined
- Jan 14, 2015
- Messages
- 206
I am trying to figure out the best place to save money that will be used for a down payment for an investment property and/or for general retirement funds. I do not have or make enough money to max out my 457, Roth IRA, HSA, and put 6% into my pension plan. As a result, I am thinking of just going ahead and saving the "special" money in a Roth IRA account. I can withdraw and use my Roth IRA contributions towards a down payment since I can take out the contributions penalty free, and won't have to worry about paying taxes on the capital gains & dividends like a taxable account. Does this sound like a good plan? What should I invest in to try and protect my contributions yet make more in interest/dividends than inflation? My retirement plan asset allocation is 90 to 95% equities via low cost mutual funds & ETF's, but I don't think I want to be that risky with this special pot of money. I may want to withdraw some of the funds in about 11-13 months for a down payment. Finally, I am not very knowledgeable about bond funds or other halfway safe investments so any tips would be wonderful!