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Contributor

I have a small amount of cash i would like to grow, where do i start? i will be used within the next 2yrs to buy a home but i didn't want to just leave it in my savings, what should i do?

2 REPLIES

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Depending on how much you have you may want to consider a ROTH IRA. You can roll that into a house at a later date and not pay taxes because you are investing in a home. I would do this if you are thinking about later in life buying that retirement house and stay mobile now by renting or doing a first time house loan like a FHA first time buyer program with minimal money down.

 

It really comes down to how much you are have put into the savings program. A CD that matures at a certain time maybe better than a slow growing savings account. Money market accounts are also nice as a CD is a set period of time that you cannot access the money which would not work for you with the 2 year deadline for house buying plans while a money market account you can withdraw from a set number of times per period.

 

Note: I am not a financial counselor and totes m. I am just speaking from experience. If you are interested in a ROTH IRA it can also be helpful for retirement if you chose not to buy a house later.

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