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Advice for monthly investing

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  • Advice for monthly investing

    I hope everyone had a happy New Year. I wanted to get some quick advice from the group on how to spread out yearly investing/savings goals.


    We're currently planning to save about $100K/year with 2 401(k)s + match, 2 backdoor Roth IRAs + taxable account.

    2 401(k)s + employer match = $51,500

    2 backdoor Roths = $11,000

    Taxable brokerage account = $37,500


    My question is regarding timing for these. The 401(k)s I know will get funded as we go through the year, and I'm planning to fund the Roths sometime in the next week or two. But with regards to the taxable account, do you like to just set up a monthly autodraft to Vanguard or whatever company you use(in this case, of $3,125....$37,500/12)? Is there something I'm overlooking with this approach? Are there better ways of doing this that I'm not thinking of? Thanks for any advice!

  • #2
    Automatic DCA is what I did for years to build a taxable account.


    • #3
      It sounds like you have it figured out.  As long as your are staying consistent with your process you will be fine, but that is exactly what I do for myself and clients.  Roth earlier in the year (if they have the free cash flow), and monthly auto-drafts to fund the brokerage.  One thing you can add is reassessing later in the year to see if you can contribute more.


      • #4
        That’s what I do. I invest more than the automatic amount if I have too much cash periodically.


        • #5
          i manually do it, end of the month. that way i can adjust, rebalance on the fly. i also like to micromanage. i dont ever miss a date.

          for people that cant/dont want to do that, automatic is great.