Re: What's the ideal way to save up for a downpayment on a house?
I've had this question.
I don't have a 401k at work; I have CalPERS pension, and I also contribute to a 457 plan. I have a small regular IRA.
From reading these forums I plan to stick $4000 in a Roth IRA this year, and I've subscribed to Kiplinger's Personal Finance. I also moved $6k from a 1 percent account account to 4+, yes the ones I got bonusses for.
I'm not sure yet if I will be able to buy-I'm in California, and prices are crazy. I will not qualify for any low income assistance, though there may be city specific monies available for first time homebuyers to encourage positive growth in certain neighborhoods.
So I'm not really sure where my House Money should be. Should it be in a very safe %4 account? Can it be invested?
I know there's a range here in answers. It reminds me of emergency funds: some might be cash under the matttress, some safe accounts, some laddered CDs, some invested with some risk, and it all depends on the amount and possible emergencies and knoledge of the person.
What do you guys do when you are saving a large lump for a specific purchase, such as house or car replacement?
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