what is a good investment if I want to cut taxes and may want to use the money on the purchase of a ho?

Question

My wife and I own our own business and now feel we can start putting away money we are in are midthirties and will be buying our first house in the next couple years.

Answer 1

gold and silver? platinum?

Answer 2

This won't cut your taxes, but for my home purchase (about a year away), my banker recommended a basic high-interest savings account or money market account, in addition to putting money into certificates of deposit maturing around my goal to purchase my home. With the increases in interest, CD rates even for the short-term (3-24 months) can be between 4-6%. To get the highest rates possible, check out local banks and credit unions.

Answer 3

Your question reads "purchase of a ho"? That made me chuckle.

A good investment to put money aside for a house purchase would be a Roth IRA, imho.

Answer 4

perhaps you can try forex. which is also excellent way for you to invest.

The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.

try forex from here:

http://www.bernanke.cn/easy-forex/

Good Luck && Wish you make a fortune!

Answer 5

I believe you can take out up to $50,000 out of an IRA without a penalty for a down payment on the purchase of your first home, but you had better check with the IRS first, the laws keep changing and are complex.

I use Scottrade brokerage account for my IRA, and can invest in stocks, mutual funds and bonds. They have an online investing university to learn about investing. I like them because of their low fees for limit trades in the stock market, and they offer a large select of mutual funds with no-loads and no-transaction fees.

There is a limit to how much you can deposit per year into IRAs, I believe it is now $4000 or $5000 per year for each of you.

Deposits to traditional IRAs are tax defered and it is taxed when you take it out. 10% Penalty + taxes for early withdrawal except in certain cases.

Deposits to Roth IRA are not tax defered, but the money taken out after retirement is tax free. 10% + taxes penalty for early withdrawal except in certain cases.

You can also invest in US EE and I Series savings bonds at http://www.treasurydirect.gov, the gains are tax deferred, you can buy up to $30,000 per year in bonds. You have to hold them at least 3 years before cashing them in, and after 5 years there is no penalty for cashing them in.

NOTE: Since you are starting your own business, look into a "Simple IRA" or "SEP IRA", for your company. I am not very familiar with them but I hear you can get a big tax break that way. Find someone who can advise you on it.