whats the best bang for your buck savings plans, taxwise?

Question

i want to save like thru a ira /checking acct with the tax benefits and flexibility. either ,or, also a mutual fund checking. and also not tied to a , reap in 99 years plan. im open to all possibilities.
p.s. i dont have 50 grand to start with so im looking for entry level stuff with a plus.

Answer 1

First, you need to learn what an IRA is. It is about as far from a checking account as you can get. Actually, an IRA is NOT an investment. It is a legal SHELL that protects the investment inside the account from taxes until the funds are withdrawn at retirement. The actual investment inside the IRA can be nearly anything from CDs, to mutual funds, to individual stocks, to real estate. There ARE investment accounts that allow limited check writing privileges and they usually CONTAIN mutual funds as the primary investments, but the mutual funds themselves CAN'T be checking accounts.
I recommend you interview several financial advisers. You are looking for someone that can TEACH you to understand your options. You do NOT want someone to TELL you how to invest.

Answer 2

An IRA is probably the worst type of investment you can get yourself trapped into. You are better off saving as MUCH as you can until you can afford a down payment on an apartment or hourse. Put the place for rent and then keep going with the savings and paying off your 1st mortage.

As soon as the 1st property appreciates enough, sell it, take the equity and buy a bigger place and put it for rent again.

The BEST investment is using other people's money and leveraging it for your gains. Real Estate is still by far the best vehicle to do this with. You should eventually be in a position to buy a 2nd property.

In the time you expect to get money from an IRA (at 55), you will be many times further ahead (NET Worth) than just stashing money into a mutual fund or other type of paper investment.