My post said that it shouldn’t be relied upon in retirement, not that it isn’t a retirement account. If you’re lucky enough to be able to have both a savings account and a Roth, then sure, it doesn’t make sense to use it for a car. But if you need to choose between those two due to low income, it’s absolutely valid to use your Roth as a standard savings account and withdraw for large purchases and emergencies when financing isn’t an option. This is also helpful for people who tend to dip into their savings frivolously and often recommended to low earners as a way to control their finances.
But yeah, if you’re in a conformable place financially then you should absolutely max out your Roth and not touch it. That simply isn’t a reality for most people.
My post said that it shouldn’t be relied upon in retirement, not that it isn’t a retirement account.
Bullshit. You wrote that:
It’s usually used to save for things like cars or a down payment for a house.
While yes, there’s an exception that allows you to use it for a house down payment (one time only, as a first-time buyer), it sure as Hell isn’t meant to be used for “things like cars!”
Roth IRAs are designed specifically for people with less money. When you get to a certain income level, you can no longer take advantage of them (well, there are some tricks).
The general rule of thumb is that you;
- Build an emergency fund
- If available get your match for your 401k.
- Payoff high interest debt (like CCs)
- Max our your Roth IRA.
My post said that it shouldn’t be relied upon in retirement, not that it isn’t a retirement account.
I’m disagreeing with what I am understanding your position is, but I’ll give you the benefit of the doubt. You’re stating that you shouldn’t rely on a Roth IRA in retirement.
What, in your opinion, is an account that should be “relied upon in retirement”?
