No. of Recommendations: 1
Hmmm, seems you have some goals:

1) Owning a home
2) Retirement

First off...CONGRATS...you are starting at a great age that will enable you to build a great portfolio for both of your goals...now the tough stuff, "how do you do this?"

I think you need to look at a couple of things.

1) How much will I need for a down payment? Make that a target for your non-retirement accounts and figure out how much you will need to invest in it for how long (hopefully less than your 7-8 year goal).

2) How much do I have left that I would like to and should devote to retirement savings?

What you have left I would put into the Roth and leave it there. Anything after that goes to the 401k. I generally don't recommend that people withdraw from their retirement accounts for their homes. My personal belief is your retirement funds are for just that...retirement.

If an emergency comes up then by all means do what you have to do but I think you have a good shot at meeting your goals without delving into retirement funds.

You may also want to read pub 590 from the IRS for more details on IRA's...

http://www.irs.gov/pub/irs-pdf/p590.pdf

Good luck!!!
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement