I just filed my 2006 Tax Returns and my accountant told me I need to open a 2006 Traditional IRA in my spouses name before April 15th, 2006 since I already have a 401 K through my work. This will get me close to an extra grand on my return, thats why I am doing it. Also, my wife and I plan to purchase our first house in 2 years.
I know there are many different funds to choose from, but was wondering if anyone had advice on what would be best for our situation,. I am lookign for somethign with alot of short term growth because I am plannign on withdrawing it to buy our house in 2 years.
Any help is appreciated. I know very little abotu financial stuff, not really my thing but I am trying to learn cuz the more money I make, the more I am trying to keep.
2007-02-05 05:25:56 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
If you want the money in 2 years, you would be advised not to invest it for large returns. You might wind up in 2 years with less than you started with. Two years is too short a time period for aggressive investments to work themselves out. 5 years is about the minimum.
Even a conservative equity investment is at risk in a two year time period but somewhat less.
Check out Fidelity funds, but when checking them out be certain to look at their returns for the years 2001, 2002, and 2003. You will understand better what I am talking about.
http://personal.fidelity.com/products/funds/content/browse.shtml.cvsr?refpr=ipmf1
2007-02-05 07:38:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I think you're going to lose any gains to IRS "penalties" for early withdrawal ...
Take the refund check...add to it with a little " scrimping" let that be your "down payment fund" ( you'll be doing the same next year)
.... but, leave the IRA's alone...you've got long term plans for THAT money ( whether you know it or not)
P.S. Your "scrimping" could even include reducing your 401 contribution for awhile....just stay above the "company match".
P.P.S. ...also that "down payment fund" can be invested, rather than "banked"....
2007-02-05 18:36:40 · answer #2 · answered by jebediabartlett 6 · 0⤊ 0⤋
Find an agressive fund which has been rated well by Morningstar or another independent firm.
Fidelity has some great funds, but other firms have some great earners also.
2007-02-05 20:03:58 · answer #3 · answered by atg28 5 · 0⤊ 0⤋