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Updated about 7 years ago,

User Stats

146
Posts
80
Votes
Shawn Q.
  • Rental Property Investor
  • Champaign, IL
80
Votes |
146
Posts

Set for Life question: using Roth as savings location

Shawn Q.
  • Rental Property Investor
  • Champaign, IL
Posted

I just finished @Scott Trench's Set for Life (as you can no doubt tell from how often I reference it) and I had a thought/question I'd like to put to everyone. What do you think about using a Roth IRA as a component of the savings vehicle for the $25K-$100K initial steps? Any of your contributions can be withdrawn without penalty, the money would have an opportunity to grow, and there would be a tax advantage to your contribution. I know the limits are fairly low per year, but the rest of your savings could go elsewhere.

As long as I'm aware of and accept the risk, is there a downside to doing this I'm not considering? 

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