A Roth IRA is a long term retirement investment for when you are 60. “A Roth IRA is an Individual Retirement Account to which you contribute after-tax dollars. While there are no current-year tax benefits, your contributions and earnings can grow tax-free, and you can withdraw them tax- and penalty-free after age 59½”.
For many people, their home and their retirement funds are their two biggest assets. If most of your retirement fund is tied up in real estate next door to your home, then the risk profiles are interlocked. That could be worthwhile for other benefits (avoiding bad neighbours), or because you want to chase the rewards of swinging for the fences (concentration also has the chance to win big), but that needs to be weighed up against the financial downside risks of severely concentrating your asset portfolio (a big loss on both the home property asset and retirement assets would be horrid for many people).
