Hi folks, I'm exploring my options for building up a downpayment for a house and wanted to sanity check my plans with the smart people on this forum.
I am in my early 30s and planning to buy my first house in about 2 years time. Probably looking in the 400-600k range.
I currently have ~70k in cash that is earmarked for the house downpayment. In the next 2 years I should be able to save 60-80k more for the downpayment. I have recently gained access to a 401k plan that supports Mega Backdoor Roth conversions. I have ~240k in taxable investments built up from previous years when I did not have access to a Mega Backdoor Roth. The options I'm considering are:
1. Save the expected income in the MBDR and tap the taxable investments to round out the downpayment
2. Save the expected income simply as cash for the downpayment
I think I know which path makes the most sense for me, but I wanted to get some outside perspectives. Thanks in advance!
I am in my early 30s and planning to buy my first house in about 2 years time. Probably looking in the 400-600k range.
I currently have ~70k in cash that is earmarked for the house downpayment. In the next 2 years I should be able to save 60-80k more for the downpayment. I have recently gained access to a 401k plan that supports Mega Backdoor Roth conversions. I have ~240k in taxable investments built up from previous years when I did not have access to a Mega Backdoor Roth. The options I'm considering are:
1. Save the expected income in the MBDR and tap the taxable investments to round out the downpayment
2. Save the expected income simply as cash for the downpayment
I think I know which path makes the most sense for me, but I wanted to get some outside perspectives. Thanks in advance!
Statistics: Posted by yidaro — Sun Jul 28, 2024 8:15 pm — Replies 0 — Views 134