Re: Saving: Retirement vs. House/Car
I'm 26 and saving for a house right now and trying to juggle this with planning for retirement as well.
My advice:
Open a Roth after you get the max from your employer's matching contributions with the 401(k) (nothing beats free money). If you need the money at any time you can take it out of the Roth without paying penalties or taxes - ON THE MONEY YOU PUT INTO IT ONLY. Not the earnings. In this way a Roth can be a form of an emergency fund - although a bit more risky than a savings account.
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