Just created my (and spousal) first Vanguard backdoor Roth IRA with all the money we're saving after dumping my whole life insurance policy (thanks, WCI!).
I'm set for 2016 - $5,500 in each. But now I'm eyeing 2017... every tutorial I've read describes contributing to traditional IRA in one lump sum annually and then converting to backdoor Roth all at once at the same time.
Is there some reason I shouldn't dollar cost average and contribute monthly (e.g. $5,500 / 12 = $458.33) to my tIRA (and then also convert monthly to backdoor Roth to avoid taxes on gains)? Don't I want that money working for me as soon as possible, instead of waiting a full year to contribute again? Don't I want to dollar cost average by contributing monthly instead of annually?
Thanks!
I'm set for 2016 - $5,500 in each. But now I'm eyeing 2017... every tutorial I've read describes contributing to traditional IRA in one lump sum annually and then converting to backdoor Roth all at once at the same time.
Is there some reason I shouldn't dollar cost average and contribute monthly (e.g. $5,500 / 12 = $458.33) to my tIRA (and then also convert monthly to backdoor Roth to avoid taxes on gains)? Don't I want that money working for me as soon as possible, instead of waiting a full year to contribute again? Don't I want to dollar cost average by contributing monthly instead of annually?
Thanks!
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