Funding/Saving for Renovations or Repairs: Advice Needed.

[Trimatty471]

I have a question.
I have a taxable account, Roth and is saving my 401 (k).
I have my FI money in my Index fund and what I call my emergency money in my bond fund.

I accumulating money in Capital One for any needed repairs:  furnace (mine is 23 years old), cement work, replacement of appliances & etc.

I also want to renovate my home:  primarily the bathroom and kitchen.  Where should I be accumulating or keeping this money?  I posted this question elsewhere and was advised to save as much as possible into the Roth IRA which the rationale that since the account has been active for five years, then I could withdraw from it.

[EmpireOfDirt]

I have a question.
I have a taxable account, Roth and is saving my 401 (k).
I have my FI money in my Index fund and what I call my emergency money in my bond fund.

I accumulating money in Capital One for any needed repairs:  furnace (mine is 23 years old), cement work, replacement of appliances & etc.

I also want to renovate my home:  primarily the bathroom and kitchen.  Where should I be accumulating or keeping this money?  I posted this question elsewhere and was advised to save as much as possible into the Roth IRA which the rationale that since the account has been active for five years, then I could withdraw from it.

When do you plan on doing the renovation?

[Trimatty471]

I plan to do it within the next 3-5 years.

[KCM5]

Are you already maxing your Roth?

Assuming you are, you wouldn't want to use that money. Also, for clarification, the Roth account does not need to be open for 5 years to take out contributions, only gain or money that has been rolled over from another retirement account.

Since you want it in 3-5 years, I'd stick it in the Capital One account.

Have you considered using equity in your house to finance the improvements?

[EmpireOfDirt]

Are you already maxing your Roth?

Assuming you are, you wouldn't want to use that money. Also, for clarification, the Roth account does not need to be open for 5 years to take out contributions, only gain or money that has been rolled over from another retirement account.

Since you want it in 3-5 years, I'd stick it in the Capital One account.

Have you considered using equity in your house to finance the improvements?

Agree with KCM5 - Cap One or a even a CD would make sense if you wanted more yield.

If your Roth is invested in stocks you are exposing yourself to volatility.

[Trimatty471]

I will stick it in the capital one account.

No I haven't thought of using my home equity.

[KCM5]

I will stick it in the capital one account.

No I haven't thought of using my home equity.

I only say that because the rates on home equity can be quite low. If you could finance them at 3.5% and put any money you would have used into index funds for the long term, you'd probably come out ahead. Especially if you don't plan on retiring for ten years or so. But I know people can have very different opinions on even low interest debt. Personally, I find my 3.xx% mortgage to be comfortable debt to carry.