Where is a safe place to park your cash for your down payment for your Irvine Home?

NEW -> Contingent Buyer Assistance Program
[quote author="Shooby" date=1214024575]Thanks for the advice. I have decided to cancel the VUL and will let my adviser know i plan on doing this myself. I don't want to give up such a huge chunk of my savings for the advice of someone who's looking out for themselves. Can't trust anyone in the financial "advising" industry.



Will look into Vanguard and opening up a Roth.</blockquote>


Shooby, definitely open up a Roth IRA and "RUN FOR YOUR LIFE" from VUL. I opened up a Roth IRA when i was 21 and it is one of the best decisions I've made. You can take the entire money out TAX FREE when you are 59. I am not sure if the laws changed, but I think you can also apply up to $10,000 to your first home purchase as well as for tuition tax free before you are 59.



Don't trust anyone in the financial advising industry as a vast majority of them are not even close of being rich themselves. I've always managed own investments since 21. However, Awgee may be the best financial advisor you may ever need and best part of it is that his advice is FREE. Pick his brains, and if you follow his advice on where he is invested, you will become a very wealthy man in the next 5 - 10 years.



Panda's .02 cents
 
[quote author="PANDA" date=1214025729]I am not sure if the laws changed, but I think you can also apply up to $10,000 to your first home purchase as well as for tuition tax free before you are 59.

</blockquote>


Please don't quote me on that, but I believe you need the money to sit in the IRA for a few years before you can withdraw anything for home purchase.



Anyhow, if you are maximizing your 401(k), an IRA is a wise investment. It's usually pretty hard to put $20k aside /year, but if you do when you are young, you will have mucho mucho money when you retiree. Unless the stock market keeps going the wrong direction!
 
Yeah, I totally dropped the idea of a VUL, so I'm currently trying to open up a ROTH IRA through Vanguard. Minimum initial deposit of $3,000, anyone have any suggestions on current funds that are good. I'm thinking of a balanced fund?
 
the beauty of vanguard is low fees and little brain damage trying to figure out your investments. don't try to get too cute with your investments especially at this point. if you're thinking of using the roth to help fund a downpayment then protecting your principal is most impt at this point. you're not going to see much growth anywhere in the near future anyway and most of the more aggressive funds such as precious metals have been closed for some time. throw your first 3k in something conservative. you wont be very wealthy in 5 yrs like panda but you'll sleep at night.
 
Good for you Shooby. Roth IRA is the way to go. After reading this thread i decided to be a lot more conservative with my down payment money leaving it in Country Wide Bank's Savings Link account and not gamble with it by buying more Gold. Acpme, like you said, Panda hasn't been sleeping well in the past couple of days:)



I take a lot more risks with my Roth IRA because it is money i won't see until i am 59. Outside of the IRA accounts I try to be much more conservative. I am very bullish on the long term of commodities and foreign markets, especially Asia. Being only 25, you should spend some time researching those sectors.



Panda
 
[quote author="Roo" date=1214026608][quote author="PANDA" date=1214025729]I am not sure if the laws changed, but I think you can also apply up to $10,000 to your first home purchase as well as for tuition tax free before you are 59.

</blockquote>


Please don't quote me on that, but I believe you need the money to sit in the IRA for a few years before you can withdraw anything for home purchase.



Anyhow, if you are maximizing your 401(k), an IRA is a wise investment. It's usually pretty hard to put $20k aside /year, but if you do when you are young, you will have mucho mucho money when you retiree. Unless the stock market keeps going the wrong direction!</blockquote>


I believe you have to wait 5 years for that
 
[quote author="24inIrvine" date=1214269331][quote author="Roo" date=1214026608][quote author="PANDA" date=1214025729]I am not sure if the laws changed, but I think you can also apply up to $10,000 to your first home purchase as well as for tuition tax free before you are 59.

</blockquote>


Please don't quote me on that, but I believe you need the money to sit in the IRA for a few years before you can withdraw anything for home purchase.



Anyhow, if you are maximizing your 401(k), an IRA is a wise investment. It's usually pretty hard to put $20k aside /year, but if you do when you are young, you will have mucho mucho money when you retiree. Unless the stock market keeps going the wrong direction!</blockquote>


I believe you have to wait 5 years for that</blockquote>


Don't even thinking about touching your 401K/IRA for your home purchase. It is not worth the risk. In today's unstable markets you can lose that equity quickly. Also if things really go bad and you need to declare bankruptcy, your retirement accounts are protected from creditors. So why sink that money into a home where you could lose it all--either to equity burn or foreclosure. Be selfish and pay yourself first and let that money grow without interruption.
 
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