Home ownership, an FSA, and my Roth.
I’m 21 years old, live with my parents, and work full time at a bank making $20/hour while finishing my economics degree (expected graduation in Fall 2027).
My long-term goal is to work in commercial banking or credit analysis. Over the next 5–10 years, I’d like to buy a comfortable first home in a medium- to high-cost area in Colorado.
Current Financial Situation
Living with parents
Parents may contribute $5k–$20k toward the home purchase. Which I may invest now.
Roth IRA balance: $6,000
Current Roth allocation: 65% VXUS / 35% VTI
$1,000 annual contribution to my employer FSA
My Understanding
Money needed for a home purchase should generally be kept in cash or short-term Treasuries, such as SGOV.
Up to $10,000 of Roth IRA earnings can be withdrawn penalty-free for a first-time home purchase. I’ll be 5 years past my initial contribution as well.
Questions
Should I plan to use my Roth IRA for part of my future down payment?
If so, should I adjust my Roth asset allocation?
Is contributing to an FSA worthwhile if I don’t expect significant healthcare expenses?
Any tips to maximize my savings rate while I’m living at home?