Home Investing Question

[Andy88]

Good Afternoon,

I'm sure this question has already been asked but I cannot find it. I am looking for some advice on where the best place to invest money is to one day purchase a house? I currently move every 3-4 years for work but once I retire (Hopefully 14 years), I would like to withdraw money and pay cash for a house. Thanks in advance!

[Andy88]

Thanks! I wasn't sure if there was somewhere else I should invest that money. Thats good to know.

[Retire-Canada]

Thanks! I wasn't sure if there was somewhere else I should invest that money. Thats good to know.

Unless you are already rich you can't afford to have a big chunk of money not invested in the market for 14yrs. $100K in the market @5% after inflation for 14yrs would be worth $200K at the end. At 7% it would be worth ~$265K.

[HipGnosis]

14 years out is a long time.  I would invest it the same way as the rest of your long term retirement funds.  When you get closer to needing the money (within 5 years), you may decided to re-allocate it into short term funds like CDs.

Good advice, unless the rest of his long term retirement funds are invested in a way that incurs penalties for withdrawals at the time he wants to buy the house.

[Andy88]

You bring up a great point. Currently I have a Roth IRA and TSP IRA. I will have a military retirement one day. I have heard/read that if you are in the 15% tax bracket or lower you can remove funds from your retirement account without penalty. Would my best course of action be just to continue to max out my Roth and IRA and just plan on removing money from there one day or would it be better to invest money into just account like VTSAX? I would just like to have a plan so when its time to FIRE I can just pay cash for a house.

[Andy88]

I'm on track to retire at the age of 42 and that's around the same time I would be looking to buy a house. Thanks for the information and that's good to know about taking out a short 10 year mortgage.