Announcement

Collapse
No announcement yet.

Investments Post-401K and Tax Investment vs Roth IRA Account Questions

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

  • Investments Post-401K and Tax Investment vs Roth IRA Account Questions

    .

  • #2
    1. Yes.

    2. Add future "savings" allocation to a (backdoor) Roth IRA and then taxable account (preferably index and or tax managed funds at Vanguard, invest more aggressively (perhaps 80% stock, 20% FI).

    3. Nothing comes to mind. Remember, the only thing worse than paying taxes is not having to pay taxes.

    Comment


    • #3

      1. Only fair. Recommend dumping the TDF. My allocation for you would be 1/6 to each of these funds: Large-Cap Growth, Large-Cap Value, SCG, SCV, International, and REIT fund.

      2. Security and liquidity are the priorities in the short term (< 5 years). Your emergency fund and savings for < 5 years goals are right where they should be. Beyond that, max out your Roth (at your income level, you don't have to do backdoor) then start building a taxable account.

      3. Vagabond MD nailed this one.

      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

      Comment


      • #4
        ^^

        1. "Only fair. Recommend dumping the TDF. My allocation for you would be 1/6 to each of these funds: Large-Cap Growth, Large-Cap Value, SCG, SCV, International, and REIT fund."


        He asked if he was "adequately diversified", and I believe that the answer is "Yes".

        Having equal allocations of SCG and SCV and equal allocations of LCG and LCV make little sense to me. Over time, you will have 1/3 LC and 1/3 SC. I would rather tilt value and tilt small cap, as academic studies show that these tend to perform better over long periods of time.

         

        Comment


        • #5


          He asked if he was “adequately diversified”, and I believe that the answer is “Yes”.
          Click to expand...


          I understand. I just happen to have a different opinion. :-)
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

          Comment


          • #6
            You can do an HSA this year. As long as you're enrolled and set up by December 1 it qualifies as full year.

            Comment


            • #7




              You can do an HSA this year. As long as you’re enrolled and set up by December 1 it qualifies as full year.
              Click to expand...


              I think he was implying that the enrollment window is closed until next year - hopefully not.
              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

              Comment


              • #8
                Unfortunately, the window for signing up for the HSA at work has passed as it combines with our insurance plans at work - will change to HSA and start investing in there next year in November when the window opens up again.

                Changed my 401K by dumping the TDF per jfoxcpacfp's suggestion and ended up doing 80% VG S&P 500 (VFINX) and 20% VG Total Bond Market (VBMFX).

                In the process of doing the backdoor Roth IRA conversion now as likely by the end of the year will exceed the direct Roth IRA contribution. Appreciate the advice on this as I had misunderstandings on this account. Thought it was the same as a traditional IRA except pre- and post-tax contribution but can see the benefits of the Roth now. Any different allocation suggestions for 401K vs Roth IRA?

                Vagabond MD, agree with paying taxes vs not having to pay taxes. Just prefer to pay what I need to and not a penny or additional tip more.  

                Appreciate all of your input on this.

                Comment


                • #9
                  Unfortunately, the window for signing up for the HSA at work has passed as it combines with our insurance plans at work - will change to HSA and start investing in there next year in November when the window opens up again.

                  Changed my 401K by dumping the TDF per jfoxcpacfp's suggestion and ended up doing 80% VG S&P 500 (VFINX) and 20% VG Total Bond Market (VBMFX).

                  In the process of doing the backdoor Roth IRA conversion now as likely by the end of the year will exceed the direct Roth IRA contribution. Appreciate the advice on this as I had misunderstandings on this account. Thought it was the same as a traditional IRA except pre- and post-tax contribution but can see the benefits of the Roth now. Any different allocation suggestions for 401K vs Roth IRA?

                  Vagabond MD, agree with paying taxes vs not having to pay taxes. Just prefer to pay what I need to and not a penny or additional tip more.  

                  Appreciate all of your input on this

                  Comment


                  • #10
                    Unfortunately, the window for signing up for the HSA at work has passed as it combines with our insurance plans at work - will change to HSA and start investing in there next year in November when the window opens up again.

                    Changed my 401K by dumping the TDF per jfoxcpacfp's suggestion and ended up doing 80% VG S&P 500 (VFINX) and 20% VG Total Bond Market (VBMFX).

                    In the process of doing the backdoor Roth IRA conversion now as likely by the end of the year will exceed the direct Roth IRA contribution. Appreciate the advice on this as I had misunderstandings on this account. Thought it was the same as a traditional IRA except pre- and post-tax contribution but can see the benefits of the Roth now. Any different allocation suggestions for 401K vs Roth IRA?

                    Appreciate all of your input on this.

                    Comment

                    Working...
                    X