I'm 24 working for Nationwide Insurance (which has growth annually based on clients) and would like to know which investment fund would be best to look at, at this time. I own a home and plan on moving w/in 3 years. Would it be better for me to invest long-term (IRA, 401k- no match) or to save for a loarger down payment on next home in anticiapation of children?
Appreciate all suggestions
2007-01-25 05:57:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
no no save money and save up to buy apartments....... Best investment you can have.
2007-01-25 06:25:01 · answer #1 · answered by bik k 2 · 0⤊ 0⤋
The benefit of a Roth IRA is that you can pull out money you've put in (the original amount, not any earnnings) if it's to buy a house. However, it has to be five years later, not three.
Saving on a larger downpayment... well, do you think your current home might appreciate enough to cover a larger downpayment? Or is there a possibility that you might want to rent it out and not sell it?
Generally, you wouldn't invest in the stock market if you need the money within five years. However, investing in a tax-sheltered retirement like a Roth is irresistable to me: The Rule of 72 (look it up) states that the earlier you start investing, the more time you have for your money to double. So, if you wait just eight years, you'll have half the money at retirement that you could have had by starting now.
I think only you can answer your questions, but it might help to pay a financial advisor who works on an hourly rate (not commissions), to brainstorm with you.
Good luck!
2007-01-25 23:37:48 · answer #2 · answered by Katherine W 7 · 0⤊ 0⤋
Always get an IRA annually.... mix 'em up Traditional or Roth.... as far as a 401 with no match... you're probably better off saving it yourself,then.....if you get far enough ahead ( and don't need the down payment money) put it into your own " brokerage account" learn a little about investing... it'll grow much quicker there than any bank....and you can withdraw anytime ( the down payment, again)
It'll amount to about two extra lines on a tax form.
2007-01-25 18:13:28 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
At your age, putting all extra money in a Roth IRA or Traditional IRA are your best options. If you save a lot over the next 10 years, you may not need to save any more for your retirement.
$100 saved today is worth over $560 EVERY year in income during your retirement (assuming you retire at age 62). Save until it hurts, in the future you'll be glad you did. If your saving 10% of your income, then you can choose what to do with your additional savings. If your saving < 10%, then you should start saving more.
2007-01-25 15:10:11 · answer #4 · answered by MR MONEY 3 · 0⤊ 0⤋