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**Larry Ragman** · 05-13-2022, 07:45 AM

Sounds like you are making all the right moves in terms of executing the Backdoor Roth. Yes, the next step is to actually invest the funds inside the Roth. As to which fund to pick, it is dependent on a number of things that go into your personal investment plan, but I break the question into two components. What is your desired overall asset allocation, and how have you invested your money in other asset locations (your 401k and your taxable funds)? The Roth represents an opportunity to be aggressive. You should think of it as long term money since most people plan to allow it to grow tax deferred as long as possible.

Bear in mind that target date funds have bonds. In general I think folks would say your bond allocation should go to your tax deferred funds in your 401k. That being the case, the Roth monies should go to a US total stock market index, or to a international total stock market index, or both in accordance with your desired AA.

In full disclosure, I don't do that. Instead, I do what you are suggesting. That is, my Roth is invested in a Target Date Fund. But all of my retirement monies are in target date funds. What I do is adjust the maturity date of the fund so that I am more aggressive in Roth, but still conform to my desired overall AA (70:30).

Either approach is fine, as long as you have an overall financial plan that you are investing towards. Here is an example plan:
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**CordMcNally** · 05-13-2022, 07:46 AM

Do you have a plan or a goal asset allocation?

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First back door Roth conversion, now what?

First back door Roth conversion, now what?

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