Скачать или смотреть 🏠 2-Year Rule for Home Buyers: Down Payment vs Retirement Savings 💰🏦

💡🏠 Why choosing between a home down payment and retirement savings matters when a house is within 2 years. This article explains the Two-Year Rule, how to protect liquidity, and when to prioritize retirement contributions vs down payment.

Two-Year Rule overview: For funds needed within 24 months for a down payment, preserve capital and avoid stock-market volatility. Limit extra contributions beyond the employer match and shift excess cash into a High-Yield Savings Account (HYSA) or short-term Treasuries to maximize liquidity and minimize risk.

Is your retirement on track? A practical benchmark is saving about 1x your salary by your mid-30s, with annual contributions of roughly 10-15% of gross income (including employer match). Make the most of tax-advantaged accounts like the Health Savings Account (HSA) for its triple-tax benefits.

Roth IRA loophole: Contributions to a Roth IRA can be withdrawn tax- and penalty-free, at any time and for any reason, offering flexibility for home purchases, but market risk applies. This is a controversial strategy and should be used with caution.

Bottom line: Secure your employer match and max out your HSA first. If a home purchase is within two years, keep the remainder of the down payment in a stable, liquid account. Sacrificing potential investment gains now can lead to guaranteed access to cash when you need it most.

Key takeaways: 1) Protect liquidity for the down payment. 2) Maximize retirement contributions within constraints. 3) Use tax-advantaged accounts to boost savings. 4) Consider Roth IRA as a flexible option with risks.

Related topics: personal finance, budgeting, investing vs saving, home buying, first-time homebuyer, retirement planning, liquidity management, risk management, tax-advantaged accounts, financial planning, wealth-building, stock market volatility, down payment strategies, HYSA, HSA, employer match, short-term Treasuries, capital preservation.


00:00 Title
00:27 Agenda
00:58 Disclaimer
01:15 Dilemma
01:34 Two-Year Rule
02:04 Decision Map
02:45 On Track
03:26 Account Table
04:11 Roth Loophole
05:02 Sample Plan
06:05 Allocation Pie
06:35 Action Plan
07:17 Quiz 1
07:49 Answer 1
08:06 Quiz 2
08:41 Answer 2
09:02 24-Mo Timeline
09:41 Key Points
10:10 Summary
10:32 Thanks