I hate tough decisions, and I'm up against one right now.
To make calculations easy, lets round down and say I save, after expenses etc, 15k a year.
I want to buy my first place (which will be a rental property out of state) in about 15-24 months.
I have 18k saved in a fund for the house so far.
I maxed out my Roth IRA in 2011, and just put in $500 into my 2012 Roth. I have until April 15th to max out my 2012 Roth IRA if I want (4500 more). Then I can max out my Roth IRA for 2013 (5,500). I'm getting a $3000 tax refund soon from 2012.
Do you think it's worth essentially putting 16k into my Roth IRA between now and when I want a house, or keep that for the payment of the house? I'm not making much now so $5500 a year feels like a much bigger hit, than it would in say 5 years when I'm making (hopefully) much more. Although with that said people always look back and wish they started younger. I've made 20% return on my 2011 Roth IRA already (I started contributing as soon as I could).
Essentially all I need to do is put in $5500 a year into my Roth and then any employee matching, to get me from 59-dead. I plan on being FI in 12 years (35 years old) by living off rental income and some stocks.
Any enlightenment would be appreciated :).
Edit.. I feel like this is one of those, win win situations for either decision lol.