Saving Timetable

Ryan makes good money for his age, but which should he save up for?

QUESTION: Ryan is 22 and makes $34,000 a year. Should he save for a house in a money market account or mutual funds?

ANSWER: If you’re saving up to pay cash for a house and have less than 5 years to invest, save it in a money market account. If you have longer than 5 years, I’d probably use a growth and income stock mutual fund. Before you buy a house, though, have no debt and an emergency fund in place.