Basically what the title is asking. My financial situation detailed below.
I know I should be saving for retirement, especially because I just started seriously contributing to IRAs and my 401K around 30 years old. However, I'm afraid housing prices are just going to keep going up, inflation is going through the roof lately (?), and I won't be able to save up a downpayment in the future. I'm currently at 3k in my 401k (and already maxed out my Roth IRA) for 2020, and I'm planning on living off my 18k in savings, while I throw my remaining salary for the year into my 401k (hopefully maxing it out too). At the beginning of next year, I plan to first contribute my employer's 401k match while maxing out my IRA, and then maxing out my 401k again. Invest early as they say.
On the other hand, we are at a historical low for interest rates. I live in OR and would like to live in the NW (also considering WA, MT, or ID potentially) for the foreseeable future, but I'm not exactly desperate to move into my own house necessarily. It just seems like a great time to buy a place due to my credit score and the interest rates. I know mortgage payments aren't the only expense, but I'll either be paying rent or putting the money towards a house while hopefully building equity.
Is there is a way to continue contributing to my retirement accounts, while still obtaining a downpayment? I've thought about asking friends/family for money, or even having them take out a low interest loan that I could pay back for them.
My aunt (a broker in PA) told me the market is too crazy right now to buy; my landlord (here in OR) told me a week later he's never seen a better time to invest. I am deeply torn. Any thoughts appreciated. Thanks in advance.
About me:
I'm 31 with a 81k yearly salary.
Net Worth: 60k
Credit Score: 813
Cash: 18K
Credit Card Debt: 0
Student Loan Debt: 2.4k (down from original 50+ thousand)
Stocks (Robinhood/Stash): 6k
IRAs/401K: 37k
Submitted September 29, 2020 at 06:59PM by aborows https://ift.tt/30junaI
