conversation: User (mrdook): "Hello all, I have a few questions I was hoping to get some advice on. I'm a 22yr old male working in the IT industry. I'll be getting married later this year. The only form of investing I'm currently contributing to is a Roth IRA (maxed out each year). My current employer does not offer benefits, including retirement; I'm basically working for a 1099 salary with the tax break of being a W4. I'm hoping to purchase a house in the next 6-8 years; currently I rent. Here are my questions:\n\n1. Is there a better place (currently in a checking account) to store my savings for a house?\n2. Other than the Roth IRA, where should I be investing my money?\n3. With current mortgage rates being so low, does it make more sense to put a larger down payment on the house and pay it off slowly while investing the extra money somewhere else? (this is a broad question so I don't expect a specific answer, just generalities or scenarios)\n4. At what point does it make more (financial) sense to buy a home rather than continuing to rent? (again, I don't expect an exact answer, examples from your experience would be very helpful)\n\nThanks all!"
  Self: "Welcome to r/pf!  We have a pretty good FAQ in the sidebar --&gt;  \nI'd start there.\n\n1. You may be able to get slightly better interest rates with an online savings account (Schwab, Ally, Barclays).  But for your timeframe don't invest in stocks (you stand to lose your downpayment as much as grow it).  Bonds and CD's are an option too.\n\n1. Since your employer doesn't provide a 401k, you are pretty much SOL on tax-advantaged accounts.  Keep maxing out your Roth and maybe start a brokerage account.  \n\n1.  In order to avoid PMI, it is prudent to put down at least 20% on a house.  Be sure to have a sufficient emergency fund for the new house as well (so maybe save up 25% of the house).  The rate at which you pay off the property is a matter of your comfort with debt.  Yes, you can probably get a higher return than the mortgauge interest.  But if you are debt averse, then paying off the debt sooner has strong personal rewards.\n\n5.  There is a really good rent vs. buy calculator in the sidebar --&gt;  \n\nIn general, if you don't plan to stay in the area for 5+ years, then buying will be a losing bid and you will lose money due to transaction fees.  Also consider your career.  Many young workers need to move long distances in order to recieve significant promotions (statistically speaking).  If you feel like your work, social, and romantic prospects are stable for the foreseeable future, then buying becomes more attractive.\n\n"
  