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I was thinking mainly of the flexibility that this account would offer -- and the (probably) higher return than could be made by parking the money in a savings account.

The only risk would be income tax on earnings, which really isn't much of a risk. Contributions are withdrawn first, and are not subject to income tax or penalties.

The funds could be invested in the same investments whether or not they are in a ROTH. The only difference is if the account is aged enough to make the earnings non-taxable.
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