Here's my situation:
Just under 30 and moved to the US about 3 years ago.
I'm currently a contractor so it's been more tax-effecient for me to rent than to buy a house.
I'm probably going to be going to permanent later this year when my current "employer" (who my agency outsources me to) has figured out how they want to deal with my visa
At that point, I'll want to buy a house so that I can start writing off mortgage interest etc
I work from home (and will continue to do so) but travel about 75% of the time
Financials:
About 130k of savings, most of which is in a countrywide CD that will expire in a couple of months. Rest of it is in high-interest accounts such as eloan/citi ultimate savings/one united etc
"Expendible" (incoming and savable) income of about 8-10k/month
Max contributions made to 401(k) last year but non made yet this year
No Roth IRA
So my question is this: with the fact that I will probably need access to my cash in the next 6-12 months when I buy a house, where should I look to put my money now?
I just heard about the Roth IRA on the Today Show but then realised that I can't withdraw the money from it to buy my first home until 5 years after first opening an account. Also, from what I understand, its only the profits that are tax-free and the contributions aren't deductible.
