One thing I have been debating is opening a Roth IRA. As you are probably aware I have until Wed (4/15/15) to fund one for 2014 A lot of people would say this is common sense, however from my point of view I’m not so sure. My though process is below:
- I Fund my Regular IRA (401k) almost to 100%
- I want to invest in real estate in the near future (next 6-12 months)
- If I fund both 2014 and 2015 now, I am out $11k for a down payment
- While I could come up with $11k today that is a significant portion of my savings
I am thinking I will end up funding 2014 in the next few days, then seeing what happens over the next few months. That is somewhat worrisome to me though, every $5k I don’t have as a down payment is a $25k reduction in the total cost of a property that I can buy.
I mentioned above that some people might think it is common sense to fund the Roth IRA, however it really depends on what crowd you are running with. I’m a big fan of Bigger Pockets, and people on that site will tell you that you are a fool to fund anything more than your company match, I also read a lot of finance sites that promote maxing out your 401k and Roth IRA.
Does anyone have any thoughts?