Re: 5K to invest
 

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One of the benefits of a roth ira is that you can use the first 10k towards the purchase of your first home. It also grows tax free which is a huge benefit that most people don't realize how great is.

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I was under the impression one can take out RothIRA contributions up to any amount at any time for any reason tax and penalty free? I think the 10K first-home-purchase thing is for a 401(k).

Correct me if I'm wrong.

Re: 5K to invest
 

i use amtrust bank money market account and get 5.36%

Re: 5K to invest
 

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oh okay thanks. So if i have 4K there one month it pays based on that amount but if i have 2K my interest would basically be half of that?

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Woah! It's so complicated eh.

Re: 5K to invest
 

[ QUOTE ]
[ QUOTE ]
One of the benefits of a roth ira is that you can use the first 10k towards the purchase of your first home. It also grows tax free which is a huge benefit that most people don't realize how great is.

[/ QUOTE ]

I was under the impression one can take out RothIRA contributions up to any amount at any time for any reason tax and penalty free? I think the 10K first-home-purchase thing is for a 401(k).

Correct me if I'm wrong.

[/ QUOTE ]you're wrong (I double checked on wiki)

Re: 5K to invest
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
One of the benefits of a roth ira is that you can use the first 10k towards the purchase of your first home. It also grows tax free which is a huge benefit that most people don't realize how great is.

[/ QUOTE ]

I was under the impression one can take out RothIRA contributions up to any amount at any time for any reason tax and penalty free? I think the 10K first-home-purchase thing is for a 401(k).

Correct me if I'm wrong.

[/ QUOTE ]you're wrong (I double checked on wiki)

[/ QUOTE ]

You are confusing Earnings (interest) and Contribution dollars. Contributions can be taken out at any time for any reason tax and penalty free. $10K in Earnings can also be taken out for first-time homebuyers.

RothIRA has three categories for dollars, and they all have different implications:

Contributions
Conversions (rollovers)
Earnings (interest)

I just want to clarify that much more than $10K can be taken out to buy a home. If you have 100k in Contribution dollars in there, and 12k in Earnings, you can take out 110K, not just 10k.

Re: 5K to invest
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
One of the benefits of a roth ira is that you can use the first 10k towards the purchase of your first home. It also grows tax free which is a huge benefit that most people don't realize how great is.

[/ QUOTE ]

I was under the impression one can take out RothIRA contributions up to any amount at any time for any reason tax and penalty free? I think the 10K first-home-purchase thing is for a 401(k).

Correct me if I'm wrong.

[/ QUOTE ]you're wrong (I double checked on wiki)

[/ QUOTE ]

You are confusing Earnings (interest) and Contribution dollars. Contributions can be taken out at any time for any reason tax and penalty free. $10K in Earnings can also be taken out for first-time homebuyers.

RothIRA has three categories for dollars, and they all have different implications:

Contributions
Conversions (rollovers)
Earnings (interest)

I just want to clarify that much more than $10K can be taken out to buy a home. If you have 100k in Contribution dollars in there, and 12k in Earnings, you can take out 110K, not just 10k.

[/ QUOTE ]Wow I'm an idiot and WOW roth iras are sick awesome!

Re: 5K to invest
 

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
One of the benefits of a roth ira is that you can use the first 10k towards the purchase of your first home. It also grows tax free which is a huge benefit that most people don't realize how great is.

[/ QUOTE ]

I was under the impression one can take out RothIRA contributions up to any amount at any time for any reason tax and penalty free? I think the 10K first-home-purchase thing is for a 401(k).

Correct me if I'm wrong.

[/ QUOTE ]you're wrong (I double checked on wiki)

[/ QUOTE ]

You are confusing Earnings (interest) and Contribution dollars. Contributions can be taken out at any time for any reason tax and penalty free. $10K in Earnings can also be taken out for first-time homebuyers.

RothIRA has three categories for dollars, and they all have different implications:

Contributions
Conversions (rollovers)
Earnings (interest)

I just want to clarify that much more than $10K can be taken out to buy a home. If you have 100k in Contribution dollars in there, and 12k in Earnings, you can take out 110K, not just 10k.

[/ QUOTE ]Wow I'm an idiot and WOW roth iras are sick awesome!

[/ QUOTE ]

Yes, yes they are! Anyone who has the means (and is eligible) should be maxing out their Roth IRA, no questions asked.

Re: 5K to invest
 

It certainly appears a good savings account right now is better than the stock market. This stock market might not only go down, but it could come crashing down. Proceed with caution.

Re: 5K to invest
 

Fishhead24: on the other hand the stock market might not only go up, but it could go way, way up. Can a savings account do that? Remember, savings accounts need to beat taxes AND inflation, just to keep value.

Re: 5K to invest
 

Hard to make an easy dime these days, your correct.

Earning is certainly a grind.