[Jessica]

Definitely should be maxing out a Roth IRA. Hopefully he can do that *and* save for a down-payment on a house, but if he decides he wants to use the money he’s put on a ROTH for a house, he can withdraw $10k for a house without penalty.

[John]

my son is slightly older with a degree and a good job. His recent goal is to buy a house (he is renting now) In high school I advised him to fund a Roth.

Once he got a job I explained the importance of a bridge account in case he decides to retire early which he did. He self manages and is doing a great job.

After long consideration, I advised him to buy a duplex near his work as a stepping stone to the remote house he will want down the line. He understands that having a tenant pay for his mortgage will allow him to not pay rent, possible double down on the mortgage, and or save a down payment. Otherwise, there is no way he can invest, pay a rent, save for a down payment, and enjoy life.

I think it’s a solid plan and there are duplexes in his area much cheaper than the houses he was looking at.

Don’t miss: Do people recommend to max out this mega backdoor Roth contribution?

[Max]

A total market index fund through a Roth IRA.

[Charlotte]

We had our kids focus on maxing out a Roth IRA at that age. Any money above that went to a brokerage account.

A Roth IRA at a young age and low tax bracket is a great way to get money in retirement and pay very little or no tax on it and that money has so many years to grow.

[Author]

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