Really considering depositing money into my Roth IRA?

[Steph Kale]

I'm still in college and I heard that I should try and deposit money into my ROTH IRA so it starts accumulating. Should I do this or save my money so I can use it as a down payment for a house? Any helpful information would be appreciated. I'm new to investing and I don't really have anyone to look to for financial help.

[Mike McCarthy]

@Steph Kale I LOVE the Roth IRA. The reason I like it so much is that it teaches you to save and puts your money into a tax deferred account 1 BUT - Here's the kicker, you can always pull out your principle with no penalty!!

So you should put money away for retirement now. Put as much as you can afford (up to the $5K or whatever the current limit is).

And then when you’re read to invest in a property, you can always pull your money out and use it as a down payment. Or if you end up not getting into RE, your money is still working for you)

(Note that interest is not withdrawable without penalty, but it’s a small price to pay if you want to follow the more traditional savings process)

I’d also recommend you read a lot. Rich Dad Poor Dad is a good starter book. Not everyone agrees with the concepts, but that’s part of it - learning what works for others and adapting it to work for you.