I have a nice down payment I'm putting on my first house, but wondered would it be smart to add in money from my Roth IRA? What is better in the long run. As of now I am planning on living in this house for a long period of time, but everyone knows that can change.|||I wouldn't if I were you...
If you already have a down payment on your house, I'd keep your investments for any unforeseeable need in the future. I understand you want to live in this house for a long time, and you will presumably allow the equity to grow, however with the mortgage industry as bad off as it is now, property values may continue to fall and in 5 years you have something come up and you try to take a HELOC (home equity line of credit) on your house or refinance it, you might find it isn't worth what you paid for it.
Keep the IRA safe, it isn't hurting anyone where it is right now.
-Em|||No, keep the money in the Roth. If you take it out then you'll have to pay taxes on it including a 10% penalty. It's best to balance your assets so that some of it is in your house and some is in long term investments.|||NO! Your Roth IRA is growing and will be tax-free when you retire and start withdrawing on it. If you pull money out, you will pay penalties. The loss of earning power will not be offset by the mortgage paydown. Remember, you will also be able to deduct your mortgage interest on your tax return.|||yes
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