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When’s the best time to start a Roth IRA?
Posted on 5/28/20 at 9:32 pm
Posted on 5/28/20 at 9:32 pm
***Potential dumb question alert***
30 years old, married with two kids. Both wife and I have 401ks through work and both currently contribute to a Schwab broad market ETF that my wife started back when she was 18.
I’d like to start a Roth IRA for myself to contribute too as well. Any certain “time” is best to start? Ive been waiting for another big market drop but seems like I’ve missed the late March-early April boat. Also is there anything wrong with having “too many” retirement accounts? Given we collectively have 2 401ks and the Schwab ETF?
30 years old, married with two kids. Both wife and I have 401ks through work and both currently contribute to a Schwab broad market ETF that my wife started back when she was 18.
I’d like to start a Roth IRA for myself to contribute too as well. Any certain “time” is best to start? Ive been waiting for another big market drop but seems like I’ve missed the late March-early April boat. Also is there anything wrong with having “too many” retirement accounts? Given we collectively have 2 401ks and the Schwab ETF?
This post was edited on 5/28/20 at 9:35 pm
11
Posted on 5/28/20 at 9:37 pm to Dav
Now, but you don’t invest all $6000 in one thing today.
Posted on 5/28/20 at 9:41 pm to Dav
quote:
Also is there anything wrong with having “too many” retirement accounts? Given we collectively have 2 401ks and the Schwab ETF?
So an ETF is not actually a retirement account. It could be fund your invested in in one of your retirement accounts.
Posted on 5/28/20 at 10:03 pm to Dav
quote:
I’d like to start a Roth IRA for myself to contribute too as well. Any certain “time” is best to start?
The best time is always now. You’re 30 years old. No need to worry about timing the market, just get in the market.
quote:
Also is there anything wrong with having “too many” retirement accounts? Given we collectively have 2 401ks and the Schwab ETF?
I don’t see how this would be a bad thing at all so long as you’re able to keep track of everything - which for retirement accounts for someone at age 30 should be pretty low maintenance
The ETF sounds like an investment account you use for retirement but it isn’t what is generally referred to as a “retirement account” like an IRA or 401K that has tax benefits and rules associated with them
This post was edited on 5/28/20 at 10:04 pm
Posted on 5/28/20 at 10:13 pm to Dav
It’s not a bad idea to have a 401k, Roth IRA, and traditional ira. They all have their advantages and you can use various withdrawal strategies during retirement with a mix of withdraws from these different accounts to minimize taxes.
Posted on 5/28/20 at 10:38 pm to Dav
Before July so you can contribute for 2019. Depending on your income you and your wife are eligible to save 6k each.
Don't overcomplicate things. Just invest as much of that 12k as you can afford before the tax deadline- and make sure it is clearly designed as 2019 IRA contributions.
Don't worry about timing the market in general. Just get the contribution in and start setting aside money for the 2020. There's no reason you can't use the wife's ETF to fund her Roth IRA FWIW- the Roth will accumulate gains for years without being as vulnerable to taxes
Don't overcomplicate things. Just invest as much of that 12k as you can afford before the tax deadline- and make sure it is clearly designed as 2019 IRA contributions.
Don't worry about timing the market in general. Just get the contribution in and start setting aside money for the 2020. There's no reason you can't use the wife's ETF to fund her Roth IRA FWIW- the Roth will accumulate gains for years without being as vulnerable to taxes
Posted on 5/28/20 at 10:41 pm to Dav
The real answer is - 12 years ago.
No one can time the market. An IRA is set it and forget it so now is as good a time as any, maybe better than we've seen since 2009.
No one can time the market. An IRA is set it and forget it so now is as good a time as any, maybe better than we've seen since 2009.
Posted on 5/28/20 at 10:47 pm to Dav
quote:If you’re 30 years old the best time to start a Roth/IRA is 15 years ago.
When’s the best time to start a Roth IRA?
The second best time to start one is today...
Posted on 5/29/20 at 5:57 am to LSURussian
quote:
If you’re 30 years old the best time to start a Roth/IRA is 15 years ago.
The second best time to start one is today...
quote:
Also is there anything wrong with having “too many” retirement accounts?
Hell no. In my household we have a:
401k
Roth IRA
i401k
403b
457
Roth IRA
TRSL Pension Plan
This post was edited on 5/29/20 at 5:57 am
Posted on 5/29/20 at 7:37 am to Dav
As soon as you get a job.
Posted on 5/29/20 at 7:55 am to Dav
Only on a thursday during the winter. Any other time and you will never achieve success.
Posted on 5/29/20 at 7:56 am to tigabait01
quote:
Now, but you don’t invest all $6000 in one thing today.
Putting it all in something like a vangard target retirement date ETF isn't a bad choice.
Posted on 5/29/20 at 9:44 am to Dav
Yesterday
Posted on 5/29/20 at 9:51 am to notsince98
quote:
Putting it all in something like a vangard target retirement date ETF isn't a bad choice.
he can do much better with a simple index fund for starters.
Posted on 5/29/20 at 9:55 am to Fat Bastard
quote:
he can do much better with a simple index fund for starters.
You must have poor reading comprehension.
Posted on 5/29/20 at 10:11 am to Fat Bastard
He could certainly, but it’s a better choice than most options.
Posted on 5/29/20 at 10:41 am to Dav
See the Chinese proverb about planting a tree.
Posted on 5/29/20 at 10:51 am to Fat Bastard
I’d personally recommend VTSAX if you’re in your 30s. Lower expense ratio than the target retirement funds for that age range.
And I think he meant just don’t dump it all in the same thing on the same day. Dollar Cost Averaging helps protect you from market swings if you say deposit $500 every month over a year instead of all 6k in at one set price. I do that for mine.
Although, it’s not a bad idea to watch the market and sometimes either double up or hold off. Like in March I did 2k at once since VTSAX was in the 50s. Now it’s up in the 70s and I’m holding off for a couple months to see where it goes.
And I think he meant just don’t dump it all in the same thing on the same day. Dollar Cost Averaging helps protect you from market swings if you say deposit $500 every month over a year instead of all 6k in at one set price. I do that for mine.
Although, it’s not a bad idea to watch the market and sometimes either double up or hold off. Like in March I did 2k at once since VTSAX was in the 50s. Now it’s up in the 70s and I’m holding off for a couple months to see where it goes.
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