advice...

[hardkorfirefite]

hello, I am 22 and would like to buy a home in a year and a half to 2 years. and I have been talking to mulitple people on how to achieve that goal and what to do with my money. I am completely confused on what path to take. simply save? mutual funds or stocks? an IRA? if anyone could give me some advice it would be appreciated. Thank you

[sweeps]

2 years is not enough time to ride out the ups and downs of the stock market. You need to save in a high-yield savings account or money market fund.

[puck36]

I agree with SWEEPS,
Less than 5 years do a high-yield savings account or money market fund
More than 5 years do a good growth mutual funds in a Roth IRA.

[jIM_Ohio]

I would set aside $200-$500 per month in some type of savings bond, CD, or high yield savings account. Maximize the interest rate paid to you over short term.

I would not consider an IRA for savings for a home.

[Broken Arrow]

I would not consider an IRA for savings for a home.

I agree with this strongly enough to emphasize it. Perhaps there is an exception where it may be advantageous to do that, but for the vast majority of the situations, it is best to use it for what it is intended for: Retirement.

[KellyJef]

You need to save in a high-yield savings account ...................

HSBC is currently paying 4.5% for their online savings

[sweeps]

HSBC is currently paying 4.5% for their online savings

UFB Direct is paying 5.31%.