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Started By
Message
Looking for advice for my finances
Posted on 8/28/24 at 2:05 pm
Posted on 8/28/24 at 2:05 pm
(no message)
This post was edited on 2/27/25 at 9:28 am
16
Posted on 8/28/24 at 2:14 pm to Redstickbaw
Just what you are doing I think. It’s good to defer as much taxation as possible, but it’s also important to build after tax wealth.
Posted on 8/28/24 at 2:18 pm to Redstickbaw
May have missed it but do you have an emergency account in a HYSA?
Posted on 8/28/24 at 2:33 pm to Redstickbaw
Invest in real estate? Maybe a vacation home (and short term rental to pay part of it) or some regular rental homes. Crypto? PMs?
Posted on 8/28/24 at 2:38 pm to Redstickbaw
why open a brokerage before maxing out IRAs? This move doesn't make much sense.
Posted on 8/28/24 at 2:54 pm to MSTiger33
(no message)
This post was edited on 2/27/25 at 9:28 am
Posted on 8/28/24 at 2:59 pm to Redstickbaw
quote:
Yea we have a efund in a HYSA. To the other poster we do each have a traditional and Roth IRA but to be honest I’m not looking to put anymore of our budget towards retirement accounts given our current balances we will have more than enough at our target retirement account. You are saying we should put in the IRAs anyways?
Absolutely. Tax savings now for more spending vs a brokerage or if you put it in a ROTH IRA you can still pull that investment principle out later if needed with no penalty. Brokerage is really a last resort for most people unless tax loss harvesting can be very beneficial for you.
This post was edited on 8/28/24 at 3:00 pm
Posted on 8/28/24 at 3:06 pm to notsince98
quote:
Brokerage is really a last resort for most people unless tax loss harvesting can be very beneficial for you
This is where you are wrong. Many people including myself don’t want to tie up all of their wealth until they are 59.5. And yes I am fully aware the Roth contributions can be accessed any time tax free.
After tax brokerage gives you flexibility and freedom you won’t get with retirement accounts.
Posted on 8/28/24 at 3:19 pm to Redstickbaw
Never stop putting in Ira or 401k.
If not for the money for the discipline.
If not for the money for the discipline.
Posted on 8/28/24 at 3:34 pm to notsince98
quote:
why open a brokerage before maxing out IRAs? This move doesn't make much sense.
Same boat as OP & can speak to this...
Traditional IRA's lose tax deductibility above a certain MAGI ($140K ish)... at which point they have limited benefit and less flexibility vs a brokerage account.
Posted on 8/28/24 at 3:35 pm to Redstickbaw
quote:
You are saying we should put in the IRAs anyways?
Fund the Roth before the 529's. You can always withdraw your Roth contributions without taxes or penalties, you can even withdraw Roth conversions after 5 years. That way, if your kids don't go to college or you change your mind for some other reason, your money is in a Roth IRA where it will be of maximum use for you if your goals change.
I am not saying totally omit the 529's, just realize the Roth is a much more flexible way to invest. Take note: this is for a Roth IRA, not Roth 401K. Different rules apply.
Posted on 8/28/24 at 3:47 pm to Redstickbaw
How big is your liquid cash/emergency fund stack currently?
Posted on 8/28/24 at 4:20 pm to Billy Blanks
(no message)
This post was edited on 2/27/25 at 9:27 am
Posted on 8/28/24 at 4:23 pm to Billy Blanks
HSA? max out that if you have an account 3% interest with no tax is a pretty good return.
One thing im starting to do is contribute more on the after tax 401k Roth, vs before tax b/c of how crazy the govt spending is. Taxes wont go down lower than now.
One thing im starting to do is contribute more on the after tax 401k Roth, vs before tax b/c of how crazy the govt spending is. Taxes wont go down lower than now.
Posted on 8/28/24 at 4:29 pm to Redstickbaw
Not funding a Roth if you’re able to is criminal. Make sure it’s funded first then adjust from there.
Posted on 8/28/24 at 5:06 pm to beaverfever
quote:
Not funding a Roth if you’re able to is criminal. Make sure it’s funded first then adjust from there.
Yeah outside of very limited situations I concur. shite there have been times I recommend led using a Roth for emergency cash savings in some situations. You can still keep it in a high yield money market fund if you need it, but you can never go back and fund missed contributions. Tax free growth is objectively better than regular brokerage account growth outside of very unique circumstances.
This post was edited on 8/28/24 at 5:07 pm
Posted on 8/28/24 at 7:07 pm to Redstickbaw
quote:
No debt besides the house. What should I be doing with the extra monthly 3-4k?
Put it towards the house and pay that puppy off. Then take that money that you were paying towards the mortgage and get into some aggressive mutual funds.
Posted on 8/28/24 at 8:00 pm to Redstickbaw
Vanguard account and put it in an ETF.
Posted on 8/28/24 at 8:03 pm to Redstickbaw
If you're not already, keep HSA fully invested for triple tax advantage and pay for medical out of pocket. Keep reciepts for future tax free withdrawals whenever you choose.
Resume fully funding IRAs. If over income limit for Roth IRA use backdoor Roth IRA. Brokerage has a place and is great for ease of access if you anticipate a need. But if not, I wouldnt pass on tax advantaged growth.
If need be, you can access retirement accounts early many different ways (72(t) SEPP, Rule of 55, Roth contributions, Roth conversion ladder or even just pay the 10% penalty.) You can also use receipts to access HSA.
For those recommending pay off mortgage, that's just gonna tie the $ up earning no more growth on the real estate instead, reducing the ROI. Home equity is more difficult and costly to access than brokerage or even Roth contributions.
Resume fully funding IRAs. If over income limit for Roth IRA use backdoor Roth IRA. Brokerage has a place and is great for ease of access if you anticipate a need. But if not, I wouldnt pass on tax advantaged growth.
If need be, you can access retirement accounts early many different ways (72(t) SEPP, Rule of 55, Roth contributions, Roth conversion ladder or even just pay the 10% penalty.) You can also use receipts to access HSA.
For those recommending pay off mortgage, that's just gonna tie the $ up earning no more growth on the real estate instead, reducing the ROI. Home equity is more difficult and costly to access than brokerage or even Roth contributions.
This post was edited on 8/28/24 at 8:20 pm
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