figure this a good thread to discuss tips on building wealth the smart way. Tips from others can help us all, or give perspective on what we think is smart but isn't.
Tip: I've always liked the Roth IRA. Building retirement funds that grow tax free is a win. Also, in case of emergency or other circumstances (even though u should have a 6 month emergency fund), withdrawals of contributions are penalty and tax free.
My friend bought a house, basically used his Roth IRA contributions as a pseudo savings account and withdrew some contributions to help buy a home. While I don't recommend dipping into retirement, he withdrew his contributions which is penalty and tax free since taxes were paid already. And he was earning money on it at a high percentage in mutual funds.
Tip: I've always liked the Roth IRA. Building retirement funds that grow tax free is a win. Also, in case of emergency or other circumstances (even though u should have a 6 month emergency fund), withdrawals of contributions are penalty and tax free.
My friend bought a house, basically used his Roth IRA contributions as a pseudo savings account and withdrew some contributions to help buy a home. While I don't recommend dipping into retirement, he withdrew his contributions which is penalty and tax free since taxes were paid already. And he was earning money on it at a high percentage in mutual funds.
