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Personal Finances / Buying or Selling a Home


Subject:  Where to Park Closing Cost Savings Date:  12/2/2012  11:55 AM
Author:  NarnCeredir Number:  124445 of 128883

Hi All,

I am currently saving for my first home purchase, which I am planning on completing in the summer of 2015 (about 2.5 years). I have my main home down payment savings in an online savings account, but also have approximately $3000 in a Roth IRA through Ameritrade. I would like to use these funds to cover my eventual closing costs (I have a healthy 457 and pension plan that I contribute to monthly. Thus the $3000 is not a major part of my retirement savings), but cannot figure out what vehicle to store them in. Ameritrade's cash sweep is very weak, and their CD options are not strong. Ultimately I'd like to find a 2-year CD or something similar.

I wish that I could just pull the funds out and put them together with my home down payment savings fund, but know I'd have to pay the requisite penalties and taxes since I won't be using the funds to buy a home for several years. Any thoughts on what to do? Leave the funds at Ameritrade despite their low cash sweep? Perhaps open an IRA with an online bank and transferring the funds there? It's such a small amount of cash that I'm kind of lost -- though I do know I want to use the funds for closing costs eventually.

Thanks for any insights you might be able to provide.

-Narn Ceredir
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