Announcement

Collapse
No announcement yet.

New to taxable accounts

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • New to taxable accounts

    Hello

    After finding WCI and months of research, finally decided to stop letting inflation take my money. I have maxed all my tax advantage accounts, and will tackle student loans within 5 years, but interested in opening a taxable account and investing a good percentage of my savings.

    Question:
    Should I wait 3-4 months until the market bounces back?
    Not trying to predict the market, just seems like its not the best time to invest a lot of money
    I know once it's in, don't touch it..


    Thoughts appreciated

  • #2
    So you want to buy high?

    Comment


    • #3
      You say you’re not trying to time the market…then immediately try to time the market. If you’ve got the cash invest it. In 20 years you won’t remember what the price is now vs. in 2-3 months.

      Comment


      • #4
        Just dump your money in now and shut your eyes for like 20 years. You're playing the long game.

        Comment


        • #5
          I have to echo everyone else. Pick an amount you can afford to invest every month, and toss the money in monthly on the same date, regardless of what the market is doing. Believe me, 30 years down the road you will be very happy you did.

          The very best time to start investing was 20 years ago. The second best time to start investing is now.

          Comment


          • #6
            Originally posted by artemis View Post
            The very best time to start investing was 20 years ago. The second best time to start investing is now.
            I thought the second best time was 19 years 364 days ago?

            Comment


            • #7
              Agree with above. But if you're anxious about investing a lot of money you could put it to the student loans instead. Depending on PSLF, interest rates etc.

              Comment


              • #8
                Originally posted by mainecardio View Post
                Hello

                After finding WCI and months of research, finally decided to stop letting inflation take my money. I have maxed all my tax advantage accounts, and will tackle student loans within 5 years, but interested in opening a taxable account and investing a good percentage of my savings.

                Question:
                Should I wait 3-4 months until the market bounces back?
                Not trying to predict the market, just seems like its not the best time to invest a lot of money
                I know once it's in, don't touch it..


                Thoughts appreciated
                I echo others above but can you be a bit more specific about your student loan plan? Before you do a taxable account, when you've maxed all tax advantaged accounts, what % of gross is going to retirement? If you're already close to 20% to retirement with just that, I may suggest getting rid of student loans before starting a taxable account

                Comment


                • #9
                  Thanks to everyone who responded, I suppose I could deposit the money on a monthly basis, over the next year. I hear Fidelity is the best company to go recently due to their customer service.

                  Comment


                  • #10
                    Originally posted by mainecardio View Post
                    Thanks to everyone who responded, I suppose I could deposit the money on a monthly basis, over the next year. I hear Fidelity is the best company to go recently due to their customer service.
                    If you are going strictly on odds it’s best to lump sum. But dollar cost averaging is ok if it’s better peace of mind.

                    Charles Schwab and Fidelity are popular. I’m still with VG even though my recent customer service has not been good.

                    Comment


                    • #11
                      Originally posted by JBME View Post

                      I echo others above but can you be a bit more specific about your student loan plan? Before you do a taxable account, when you've maxed all tax advantaged accounts, what % of gross is going to retirement? If you're already close to 20% to retirement with just that, I may suggest getting rid of student loans before starting a taxable account
                      I am 3 years into my new attending job, student loans are 170k, with plans to refinance and pay over 5 years, as employer does help with a very tiny %, like 600$ per month. Wife and myself max contributions to 403b, 457b, HSA, we have not done back door roth IRA.

                      Comment


                      • #12
                        Regardless of maxing contributions, you both need to be "retirement saving for 20% of gross. " If that mean taxable, so be it. Suggest the Roth before taxable.

                        Comment


                        • #13
                          Originally posted by artemis View Post
                          I have to echo everyone else. Pick an amount you can afford to invest every month, and toss the money in monthly on the same date, regardless of what the market is doing. Believe me, 30 years down the road you will be very happy you did.

                          The very best time to start investing was 20 years ago. The second best time to start investing is now.
                          Well I mean technically the SP500 dropped 25% throughout 2002, so although 20 years ago would be great at this point, the best time to invest would have been 19 years and 4 months ago.

                          But OP: ignore that and invest now.

                          Comment


                          • #14
                            Originally posted by Tim View Post
                            Regardless of maxing contributions, you both need to be "retirement saving for 20% of gross. " If that mean taxable, so be it. Suggest the Roth before taxable.
                            I believe we have a 45% savings rate, we live like residents and save a lot.

                            Can I ask something basic: What is the point of doing backdoor IRA if its most likely going away?

                            Comment


                            • #15
                              You really should do backdoor Roth IRA before taxable. What’s the point if it’s most likely going away?

                              1) it’s not definitely going away.
                              2) why not use something while it is still around?

                              Comment

                              Working...
                              X