Planning Briefs

Online Survey Shows Split In Funding Home Down Payment

Published Tuesday, November 22, 2016 at: 7:00 AM EST

Are you looking to purchase a home with your significant other? According to a new survey by NerdWallet, a personal finance website, 41% of couples reported that they each put up roughly half of the down payment. That's a far cry from the days when a main breadwinner usually paid the lion's share.

The online survey, conducted by the Harris Poll midway through 2016, examined the sources of home down payments, as well as common disagreements and fears that may have plagued buyers. The respondents included more than 2,000 adults age 18 and older.

Other highlights of the survey:

11% of women contributed all of the down payment or more than their partner did.
Homeowners needed to save an average of three years before buying their current home.
One in four homeowners saved money monthly to put toward the down payment.
42% of millennial homeowners (age 18 to 34) saved monthly for a down payment when they purchased their current home, while only 29% of Gen X homeowners (35-54) did the same.
More than half (52%) of millennials needed to save money before purchasing their current home.
More male homeowners needed to save before buying a home (47%) than females (32%).

This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.

An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.

Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).