ROTH

mcchung52

Awesome dude! Pull it tax free? So it’s ROTH ira? I wanna pick my own stocks for my retirement

PooPooPointBoiz

Guess who went all in on NVDA stock in my ROTH today and what happened the moment I bought? Me. And I bought at the top today before close, and it immediately dropped like 2%. What the fuck dude.

izfanx

Maxing out 401k isn't the first goal because not everyone fully benefits from the tax savings. Where as ROTH IRA is post-tax money so the benefit is universal. That's why the steps are 401k until employer match (because free money), then ROTH IRA, then max out 401k if there's money to spare.

tybone537

I hope so, I max out my 457(b) plan at work as well which is also ROTH but unfortunately they didn’t have VTI/VTSAX so I did 80% - VIIIX(large cap), 10% VMCIX(mid cap) and 10% VSCIX(small cap) to try and mimic VTI.

Niastri

You have to pay earned income on the amount that you convert. Using the example from above, my 122 shares of Apple were $80 in January. I thought it was a gift to be able to convert them for only $58 a share. By converting when I did, I got a 27% discount on my tax hit from the conversion. Since you can get up to the standard deduction without paying any taxes, this year you could convert $14,600 from your rollover IRA to your ROTH for free. If you have earned income, you won't get away free, but you can manage conversion cost by looking for dips. Apple want even my biggest gift from COVID... ARCC dropped from 19 to 9 during the pandemic scare. I converted all of it and bought a bunch more while I was at it. You could write a book about the dangers of using margin, but having a substantial margin account with a fairly predictable crash like the one from the pandemic was like a cheat code for the market. But that isn't talking about ROTH anymore. 😂 I use Vanguard for now, they have a simple button on their browser page to convert your IRA to a ROTH. The brokerage firm I used to work for had a 20 page form! I guess most companies will be more like Vanguard these days.

izfanx

What *I* would do is just lump sum it to an SP500 etf and be done with it. But I've got all my things covered (emergency fund, no debt, all retirement contributions planned out). So get rid of your debt, make sure you have your emergency fund, and look to contribute to tax advantaged accounts (ROTH IRA) before putting it in a brokerage account. Though to be perfectly honest HYSA is not a bad choice.

FlatIndependence8633

529 for college. If they don't use 529, can be converted to ROTH. Or.....ST CDs for now. Utilities are down currently and have a high yield for LT. Better with children's accounts and smaller amount of $ to go conservative. Buy and hold.

vision-quest

I contributed to a ROTH IRA for both my wife and I (2023), but realized that we are actually above the income limit and not eligible for regular or a backdoor ROTH contribution. How would I go about fixing this mistake?

DeansFrenchOnion1

25-30% of ROTH if 1) you’re interested in stocks and 2) also contributing to 401k Life is supposed to be fun and having (some) fun with investing will encourage lifelong savings. I use my HSA as my fun portfolio and completely dedicate the bi-weekly contributions to individual stocks I believe in

CUbuffGuy

Couldn’t afford the MSTR put I wanted yesterday in my taxable acct so I bought it in my ROTH. Now I’m a few years contributions ahead :)

Kr1s2phr

You’re not the only one. I’ve always felt that way as well. I never liked the fact that my money is locked into an account until “x” age. Where there’s more penalties than there is positivity. Especially, when it comes to pensions (which I have). However, I do invest in my own personal, taxable account. And now, going on 43 years old, I just started my own personal ROTH (for the hell of it). Just for an extra boost down the road. That gets my growth stocks and one BDC (TSLA, FBTC, SCHG, and MAIN). But I still feel you’re better off investing in your own taxable brokerage then being locked into anything.

fantasyfool

I can start a 529 even before I have a kid?? Nice! HSA is another great call but unfortunately I have to wait til the next enrollment period at my company to do that. I guess I can open one on my own too - I’ll look into that. Also to clarify on the 401k - I am in a 401k but it’s a ROTH 401k

Knot_In_My_Butt

I have just maxed my ROTH and I have about 4k left to invest but now I’m wondering if my account is balanced. I have: 8 shares of JEPI 4 shares QQQ 2 shares VHT 4 shares VOO I feel like QQQ and VOO overlap a lot and I’m not a fan of JEPI so maybe another ETF with a decent dividend payout would be nice. VHT is okay, I really like the idea of getting into healthcare but tbh it doesn’t seem to be that lucrative. Any help would be appreciated

Kydoemus

If in USA, I'd go with a ROTH IRA, you'll be able to withdraw your contributions without penalty (not gains). You'll also be able to pick what to invest in. I'd go index fund, such as Vanguard S&P 500 ETF (VOO).

gavalo01

you can pull your initial investment out of a ROTH tax free, any touching of the gains will fuck you w taxes and the Fee

HippoSpa

Wait till you hear about the mega backdoor ROTH…

rredmed

I'm 72 now and I have used IRA's and Roth's to minimize taxes. I retired at 49 and took my retirement as lump sum. That lump sum came as IRA funds. I had about 140K from a real estate investment to live on. I expected to live as long as I could on that 140K and use the lack of income as a opportunity to dribble the maximum I could tax free into a Roth. To my surprise I was able to do this all the way until I turned 70. At 70 I started to collect Social Security and I expected my tax free IRA --> ROTH dribble to pretty much go away, but it did reduce but I'm still able to rollover a good amount taxfree to my ROTH. So a ROTH is a very usefull tool.

Niastri

The situation gets better if you have a million in your ROTH, and a million in your brokerage account, and get 20k from social security. You're not selling, but living off dividends. 4% from Roth= 40 income 4% from brokerage non qualified amount 40k * 15% taxes= 34k and 6k taxes 20k from Social Security is only half taxable. It is under your standard deduction, so you pay no taxes. You therefore have a total taxable income of 50k, instead of the 100k you have coming in. You pay 6k in taxes. Because you have half your money in a ROTH, you lock in a 6% tax rate with 100k annual income. If you had all your money in the ROTH, you pay no income taxes the rest of your life.

sirzoop

If you are going to end up in a lower tax bracket when you retire than you currently are in, ROTH IRAs are worse than traditional IRAs. If you are going to end up in a higher tax bracket when you retire, ROTH IRAs are better than traditional IRAs.

dldoom

You can withdraw your contributions from a ROTH IRA penalty free.

freebeetoo2

Boy got his ROTH on HOOD

ProudNativeTexan

Just wanted to thank you again for your response. I cashed out the I-Bond, put $4K in my ROTH Ira and added some savings to the remaining balance and got a six month $10K CD at my credit union at 4.75% APR. Contrary to what usually happens when I put money in the market and it immediately dropping, my investment is actually up the two days I have had it! Really can't go wrong with VTI.) This splitting of funds satisfies my wife (and me as well) with her being concerned the ROTH IRA could lose money. Thanks again.

Isenbro_

I’ll give yall a ROTH IRA. Update in a few weeks when I’m up to 500k

Scary-Procedure5373

Yea, but you have great, highly diversified funds in your ROTH, you don't NEED to do anything fancy in your taxable if you don't want to. You can even just buy more of the same fund or do VTI/VXUS if you want.

ShouldvehadaV1

Would the tax benefits of the ROTH IRA be beneficial if I need to withdraw in let’s say 10 years compared to a regular brokerage account?

Organic_Cry3213

At different points in my (45f) married life, I've taken a step back from my career for our family. I don't mind it; I love my work but also my family. But this has meant I've made less money than my husband (40m). He's recently offered to transfer $100k to me to invest in my retirement accounts. I have a ROTH IRA and a SEP IRA through Weslthfront. I'm thinking of just transferring $4k a month to each of these until I work through the full $100k. Is that reasonable? Or is there another strategy I should consider. Note: we're not hurting for money and most of that came after we were married so if we did split up I'd get half of everything. He decided to send me this money on his own accord for the psychological aspect of it. So when I look at my accounts, they don't seem so sad in comparison to all the money we have as a family.

Full-Mousse7576

I'm new to investing, and I mean NEWW. Started this year. Few years back I would dabble here and there nothing serious like bs amount of $. But 2024 I'm agressively putting a minimum $500-800 a month Now here's the thing, I have 0 clue about investing. The extent of my knowledge goes as far as "you believe in that company? Okay own some shares" that's about it I don't know my goals with it, I've read a couple about dividends and stuff which caught my attention but that's about it. I'm more of a long term guy I don't mind then sitting until I need it for god knows what I also opened a ROTH ira which houses VOO only right now. If you seasoned veterans could chime in and possibly drop some pointers that would be greatly appreciated! Or honestly whatever you feel like saying I'm all open ears My brokerage account includes AAPL - 6 shares AMZN - 6 shares GOOG - 1 share KO - 7 shares RIVN - 23 shares TSLA - 2 shares UBER - 6 shares

Kr1s2phr

Learn a trade or multiple trades like plumbing, electrical, heating/AC, and carpentry. People will always need that kind of help. Later, you can always invest in an ETF like SCHG (growth only) in a taxable, and ROTH, account.

lichsadvocate

Ease of use, no commissions, % match in the ROTH

whereismyface_ig

Nah BTFX isn’t on my platform at all. Meanwhile, BITX is listed on the platform but it just doesn’t allow one to trade it at all. In any case, I dumped the whole account into my BITO trade so I can’t even put in bread on the others even if I wanted to. In Canada, we have these accounts called the TFSA where there’s a limit to the contribution room, and any gains made in that account are tax-free. It’s sort of like a ROTH-IRA but not exactly. Because I have a good entry on the LEAP and it’s my entire TFSA, I’m just going to have to wait til BTC hits its cycle peak. When that happens though, I’ll look at all the options available to see if there’s some better moves than BITO

aqwn

Open account at Vanguard and buy only VOO. Also would have maxed out 401k at least to get max employer match and ROTH IRA contributions

HotPlops

You're 26. ROTH IRA. Dividend heavy stocks. Buy them. Keep buying. Reinvest the dividend for more stock. Try for the 7k max annually. $T is boring, but the dividend is currently 6.45%. In 40 years when you retire, you'll have millions and tax-free dividend money coming in. If you want more money, sell weekly covered calls slightly oom.

Normal_human_person

STOP JIM, MY DAD THREW MY ROTH INTO BITCOIN 

Striking-Block5985

no , it depend how soon he takes profit after the original tarde (the wash rule is 60 days ) I doubt that is in play , we also don't know it was done in tax free acct like a ROTH IRA or not

Caboun6828

One of my ROTH accounts is with RH. My ETFs are VOO, JEPQ and XLY. My stocks are AAPL, TSLA and META all with $5 per day reoccurring investments and $150 every two weeks spread across all six.

eateralum

They’re matching 3% on max ROTH contributions???!

semicoloradonative

I did the same thing at your age (50/50) and don't regret it. I did recently stop doing the ROTH 401k though and went all in on pre-tax to help decrease my AGI.

Prudent_Marketing109

Genuine question; when did you start investing on the ROTH IRA?

LUNA_underUrsaMajor

No. Use it to max out HSA and ROTH IRA every year 

No-Service-3987

Personally I would have gone all in and also converted to ROTH first, but nobody is perfect.

Opposite_Engine_6776

I’m having a serious case of fucking FOMO. Like literally liquidate everything: 401k, ROTH, other holdings, and just dump it all in NVDA. Seriously need to see a therapist otherwise I might act recklessly on this impulse. 

p4ort

Long as you max your ROTH you triple your investment just off that. Everything else is gravy

Resilient_Heart

Thanks for the detailed response! I'll have to talk with my financial advisor about what allocations my two professionally managed accounts have, and go from there. I'm not sure if it matters, but the two professional accounts are a Traditional IRA and an Individual - TOD. I also have three non-professionally managed accounts I *try* to tinker with on my own. One is a ROTH IRA Active, one is an investment account for myself, and the third is an investment account for my son. The ROTH IRA Active was set up before my husband passed in 2020 (obligatory "cancer sucks"), and I honestly haven't made any changes to it, while the two investment accounts are heavily invested in Fidelity's FTBX bonds (they also have very small holdings in Target, Apple, WPC, JOBY, and Archer Aviation).

Kr1s2phr

I agree. The FUD is ridiculous. Most people despise Elon and what he’s been doing. But Elon isn’t Tesla. Just the spokesperson. 2024 will be rough but, I see this year being a massive opportunity to stack as many shares as possible (taxable and ROTH). I’m in it for the long haul (7-12 years out).

Evening-Mud-2253

Don't forget you can convert $35k of it to your kids ROTH as well (keeping within yearly limits) -- That contribution at say age 22 would be huge by age 62 (40 years) -- could result in an additional tax free 1.5M (Roughly $500k after inflation).

Resilient_Heart

Honestly, that's kind of how I feel about it! In addition to the two accounts I shared returns for, I also have a ROTH IRA Active, an investment account for my son, and an investment account for myself (the two accounts I shared are a Traditional IRA and an Individual - TOD). The investment accounts for my son and myself are largely invested in Fidelity Total Bond, plus a few stocks I bought a few shares in based upon things I've read in financial articles (for example, Archer Aviation, JOBY, Target, Apple, and WPC).

Isenbro_

At 100k in ROTH IRA

Complete-Freedom3219

I believe that your ROTH IRA is the best place for "high risk high reward" plays, since all gains are completely tax free. I go slow and steady index funds in my brokerage account, and went FBTC in my roth. DYOR, YMMV, & NFA.

freeState5431

Idk but I’m moving 250 shares to a ROTH while it’s beaten down

Isenbro_

ROTH IRA update 60k started November with 6.5k total contributions are 8.75k

292ll

Gamble in your ROTH IRA (if you hit the lottery, no taxes). Index in your 401k.

quuxquxbazbarfoo

I feel you. I'm quite a bit older and just hit the coveted 1m mark, and like you it was just a regular day. Keep doing what you're doing and you will get there! IRAs, ROTH especially!

Asleep-Durian-3722

is this 4k a month not including ROTH IRA & 401k?

Prestigious-Put-7790

Hi all, college student (20, USA) looking for investment advice for my ROTH IRA. Planning to max out Roth till I can. Annual income while in school is $20,000 and expecting $110k post-graduation. Thanks in advance. Portfolio up 9.22% YTD. Present Value: $13,584.02 Here are my current holdings and portfolio diversity %: **BRK.B; 12.74 shares:** $5,120 (37.7%) **QQQM, 4.01 shares:** $720 (5.3%) **SPLG, 16.45 shares:** $983 (7.2%) **SPYG, 0.4 shares:** $29 (0.2%) **VUG 3.03 shares:** $1018 (7.5%) **SCHD, 12.01 shares:** $941 (6.9%) **ARCC, 167 shares:** $3400 (25.1%) **AAPL, 3.42 shares:** $582 (4.3%) **TRMD, 4.27 shares:** $143 (1.1%) **LNTH, 10 shares:** $645 (4.8%)

thechosen10ne

Wow! Sounds like a good tool. I just rolled over my old 401k into my new 401k unfortunately because I was nervous to manage my account on my own and make the same mistakes as outlined above. Any recommendations for where to open a ROTH IRA? I got a promotional email from Webull about some 3.1% matching promo they're offering for new Roth IRA accounts.

FalconOut

I invested $100 of it and have the rest as cash. Do I simply sell $100 worth of stock, and withdraw the amount that was over the limit? My whole ROTH IRA made money on average. Do I also take that average and pay a penalty for it? I invested $100 of it and have the rest as cash. Do I simply sell $100 woth of stock, and withdraw the amount that was over the limit? My whole ROTH IRA made money on average. Do I also take that average and pay a penalty for what I earned?

Gre3nPowerRanger

Many here will say you’re ridiculous for investing a large sum into “kids 529” yet they are wrong. Overfunding the 529 is a strategy very savvy investors will utilize to a) eliminate taxes b) move money out of their estate c) maintain full access, liquidity and control of their money. Similar to a ROTH, your money grows tax free in perpetuity. Withdrawals for education, room, board, tuition and miscellaneous costs are all tax free. You can switch the beneficiary among family, to yourself, and across generations. You can also convert excess 529 balances to Roth after 10 years. Lastly, and this is key, you can avoid the 10% pro rata penalty if the beneficiaries is impacted by a) death b) disability c) scholarship. In summary, overfund the 529 because you never lose control of the money, the kid has no claims, you direct all distributions, and your can recycle money back to yourself if any money is left over. The 529 is one of the most under appreciated investment accounts in existence and education inflation exceeds even healthcare costs. Remember, it’s your money, not your kids, and you have no obligation to use the money for education, yet the privilege to spend it tax free if you chose to.

RepresentativeTie309

I have 29k in my ROTH IRA, which stock(s) should I go all in on? I don’t plan staying in the market for long I’m more of a Crypto holder than stocks but right now I have 29k in my IRA. Thank you for your suggestions.

SailingBacterium

36 years old. As of today 372k in 401k and 72k in ROTH IRA. I started with just putting in what the company would match at 27, and then started maxing 401k and IRA around 30. Our goal is to retire at 55 but who knows what'll happen between now and then and we're in a VHCOL area.

thechosen10ne

I'm currently maxing out my HSA contributions to the IRS limit and taking full advantage of my employer match and then some. All 401k contributions are currently ROTH only. I have considered doing half ROTH and half traditional to reduce my taxable income. Currently I have an emergency fund that should cover 4-6 months of expenses but it could be stretched if necessary. But to answer your question, no, I currently am not maxing out my 401k. I asked the advisor at Empower if I should stop investing in the taxable account until I am maxing out my 401k and his response was that it's always nice to have liquid investments. Meaning that my taxable account can be used in the event I need cash without the penalties of withdrawing from a retirement account. With that being said, is there a benefit to opening yet another account (Roth IRA) instead of contributing more to my Roth 401k or even doing standard pre-tax contributions to my 401k?

thechosen10ne

I'm currently maxing out my HSA contributions to the IRS limit and taking full advantage of my employer match and then some. All 401k contributions are currently ROTH only. I have considered doing half ROTH and half traditional to reduce my taxable income. Currently I have an emergency fund that should cover 4-6 months of expenses but it could be stretched if necessary. But to answer your question, no, I currently am not maxing out my 401k. I asked the advisor at Empower if I should stop investing in the taxable account until I am maxing out my 401k and his response was that it's always nice to have liquid investments. Meaning that my taxable account can be used in the event I need cash without the penalties of withdrawing from a retirement account.

ramavali

27m— 26k in ROTH— 15k in brokerage— 17k in Govt. I bonds. Both investment accounts are Vanguard. I really wish I had started saving sooner. Had a Roth IRA since 20 but only started maxing out my contributions in the last couple years. Had some addiction issues that I’m now on top of and if only I could have all THAT money back. But we live and learn!

011010001

Isn’t he over the ROTH income limit?

Coookie_Thumper

Open a ROTH Ira, traditional Ira if you don’t qualify. Max it. You can still drop 13.5k (2023 & 2024). Put rest in HYSA and brokerage of choice. Don’t know your income but get a good CPA. My partners and I keep a firm on retention.

lichsadvocate

I’ve asked AI, looked at its sources, and other sources, RH support was sus, and still don’t know: let’s say I contribute $6k to my ROTH for year 2024, then next day immediately withdraw it without any earnings of any kind. Can I immediately contribute it back without issue? No forms, no fees? Does it count as a roll over that can only be done once every 12 months?

SurvivedWayWorse

I stayed with Hood for the sick ass 3% match on my ROTH contributions. LOL, Im a sucker for free tendies bro. Not sure what to say. I do think that Hood could improve the reporting features and that would more or less shut me up about any issues I have with it.

Tannman129

I'm 32, just hit 150k in my 401 and put 9% Pre-Tax 6% ROTH. The company only matches 2% but has a full pension as well. I'm hoping to retire at 55, but that depends on when my wife goes back to work which should be roughly 2 years.

RCDrift

I'm in the weird situation with a 457 where my tax deferred and my ROTH can get the max contribution of $23,000, but they can't exceed that amount combined. One of the guys I work with says go for the Roth, but the difference is not being able to touch it till 59.5, but the deferred account can be accessed anytime after leaving employment without a penalty. I'm looking to be done working at 57, and I've really got to make my concrete plans now. Currently I'm maxing the deferred, but I've been staring hard at the ROTH.

zel_bob

I’m 24 so very early in my retirement investing career but I believe I have just around 25-30K. I’m putting around 22% of my income (20% ROTH 401K, my company matches 100% of the first 4% then 50% of the next 2%. I’m fairly close if not maxing out 401k contributions. I’ll have to check once my raise hits. And I plan to open a ROTH IRA this year

CornfieldJoe

I'm lower income myself and used to be MUCH lower income lol. You should set out to try to save 20% of your total income. That's not reachable for some people who have way too much debt or if they have kids/housing expenses that are out of wack. 1st. Make sure you have an emergency fund - ideally several thousand dollars in a bank that you could instantly extract for an emergency. Think broken bones, jail, car randomly dying, toilet breaks. 2nd. Once you have that, open a ROTH IRA. Roth Ira's are beneficial to low income individuals for a range of reasons:

Dem_beatz123

I'm slightly older than you so hopefully my life stage is similar as well. Take it easy and slow. The worst thing you should do is rush and it's good that you're researching. It's not a terrible idea to have 1-2 sessions with a financial advisor to plan your road ahead and to learn. It's their professional job afterall and everyone here has no rightful qualification or right to give you good advice. It's great hearing you take a class but don't underestimate the knowledge of professionals either. It's worth the cost even if it's 10 sessions for example (just do research, some advisors are scummy). But if you want my opinion (not financial advice), start with a budget. To know how much to invest, you need to know how much you spend on living and free spending costs. There are 3 financial categories for most people in a budget: Living costs (required costs to survive, work, eat, and for some... Health), non-priority spending (any excess things beyond the required amount in living costs, hobbies, snacks and takeaway food, liabilities like clothes; jewellery etc.) and finally savings (emergency fund, investments, trust and estate, retirement fund, house deposit etc). Organise your life in detail and place each aspect in its respectful category. It's different for everyone and needs to be AS DETAILED AS POSSIBLE while having some flexibility (like an excess fund and emergency fund)... Not all months are the same cost wise. Once you know how much you can invest you need to figure out your plan. Are you investing short term or long term? What's your risk tolerance? How much have you researched? What investment types will you consider? I advise you do not go into speculative investments like crypto, options, futures or high risk investing like leveraged investing. They are dangerous if you don't know what you're doing. Personally is say avoid trading as well. This isn't suitable for anyone who isn't doing it as moreorless a full time job (and who dont lack experience and skill on this too). You will not see good gains I promise you. A class is not good enough to consider yourself a good day trader, it's a job like lawyer, doctor etc. For beginners ETFs are a pretty good place to start. But don't mistake what they are, they're not an asset, but a collection of assets. You're essentially buying a pre made portfolio of stocks. Understand that before you go into them. You're right VOO and VTI as well are great ETFs. They measure the s&p 500 and the total us stock market respectively there are also international ETFs which track the global market. If you're investing in 50 stocks, it's better to change your strategy to 1-6 ETFs instead which hold the stocks you like and track them on a broader scale. 6 assets is easier to track than 50. Bonds are also a great investment to look into early on. They're very simple, there is 2 primary types of bonds: Government Bonds and Corporate bonds. Bonds are a way of a business or government to guarantee investors a return for taking on their respective debts. Corporate bonds are a bit more risky but if they're a large and stable company in a stable market they can act similarly. Think of large health care companies or even massive tech giants like apple who have a track record of repaying their debt. Both governments and businesses are given credit ratings based on how reliable they are repaying debt. These are tracked by international organisations and just know A, AA, AAA Is top while the lower the letter, the more unreliable they are. Anything B or above imo is considered reliable, while A or above is considered very reliable. Credit ratings may also use '+' or '-' to add additional tiers to the letters. You mentioned ROTH Ira and In addition 401k is similar. These are retirement funds which you can invest into and should only take out funds in specific conditions. I am not in the US but we have our own version in NZ. With NZ's superannuation, you can't take out funds unless a) you're retired or b) you are purchasing your first property (and intend to live in it). Roth and 401k are similar. These have the advantage of employers who are also required to match your contributions to a certain amount. This essentially means you're gaining additional money that isn't yours from your employer. It's a powerful tool for later life income and assets and can get you ahead so don't underestimate these options. Stocks are essentially ETFs but for single companies. They are riskier since you're investing in 1 market, 1 company, 1 sector and 1 industry at a time, whereas ETFs can be multiple different ones which can spread your assets and reduce risk. Think of a flat and wide pin vs a narrow and sharp one. The protrusion you get when you stab something determines your profit. Breaking and how far you break through the penetrsted point determines your loss. You can gain more from 1 stock but also lose more. With ETFs would should be doing this too, but stocks requires even heavier research and active analysis and tracking of companies you specifically invested into. It allows you to pour assets into your exact desired location in an exact percentage of your portfolio. It's great for when you're better on a single or few companies. We can also discuss real estate. Unlike the stock market which are abstract assets based on real entities, real estate is skipping the abstract idea of stocks and buying the entity directly (like with collections and art). But real estate is considered a reliable real asset because its a survival need. People need to live, work and earn money and these are primarily done in properties. But the entry is also steep of course. It doesn't return as well as stocks but real estate has a particular and special advantage, it allows high leverage in low interest through leverage and mortgages to purchase additional property. Banks, brokers and investors love real estate more than other investments because they are stable, living requirements and real assets you can touch, hence why they trust it more and provide lower interest loans. There is also long term deposits, high yield savings accounts etc. But these are either short term, low yield investment methods are don't yield much but are super safe and stable as long as the bank itself is. Avoid art or collections as these are based on taste and preference and therefore their value has no base, so are unreliable on their worth. These all have different risk levels and require different approaches to track and maintain. Selecting what investment you want to push with is very important and needs careful consideration and understanding. This is also partly why you create a budget and an investment Road map. It reveals which investment type you usually wanna pursue. Bare in mind each of these also have a recommended holding period. Real estate needs to be held for longer than stocks, usually due to debt and also the materialised profit from it. There are also variations in each investment type. There are long term hold ETFs and short term hold ETFs. Difference being how many fluctuations are expected with the respective type. Bonds also have long term vs short term bonds and in addition also have maturing spans. Company stock holding period depends on the circumstance, company, industry etc. These are determined by the investor. Roth Ira and 401k is extremely long term but also has tax cut and employer contribution advantages. Hope this helps!

Slahhhpyy_Joe

$135k brokerage, $80k 401k, $80k ROTH IRA, $6k HSA

jorlein25

31 yr old, $130 in 401k, 20k in ROTH

ElectrochemicalAorta

You should open a ROTH

PurposeImpressive808

I’m in a similar situation as you where I recently came into a lump sum of cash and not sure what to do with it. I opened up a regular Vanguard account and parked it all there until the market either crashes or interest rates really start to come down. In the meantime it’s earning about 5.2% and I use that to fund my wife’s ROTH.

Double-Hair-4887

Yea. I didn’t know that’s, why I was asking. I know about Traditional IRAs & ROTH IRAs & 401ks & 403bs but didn’t know anything about a brokerage account. I only heard the term thrown around, but I didn’t know, hence why I asked. Call me stupid or ignorant if you want, but I didn’t know.

beyondo-OG

\#1, it you don't have a ROTH, start one. Obviously if you can max it out every year, do so. Keeping in mind, this is money for the long haul. \#2, to keep it simple, I'd suggest moving a portion (say $50K) of your HYSA funds into the brokerage account. Funds usually have a min investment to get started, so buy the min of whatever S&P index you like, and then setup an automatic investment option to invest the rest. That way you dollar cost average into the market. You can buy weekly, monthly, etc. For example: you buy $5K of VOO to get started and setup to buy another $1K every week there after. Move as much into the brokerage as you feel comfortable with and sit back and watch it grow.

Kr1s2phr

Hello. Since you’re new, I suggest using M1 Finance. It’s the simplest brokerage to use. You create a “pie”. Pick your investments, set allocations, and auto-invest or manually do it. Very easy. You could create two accounts (taxable and ROTH). Like others have said, the easiest options, and I’ll list their counterparts in parentheses, are; VTI (SCHB), VOO (SPLG), or if you want to go somewhere in between, SCHX. Those are “set and forget” ETF’s. For a little extra growth, you could always add SCHG or QQQM.

Double-Hair-4887

I have used a Traditional account with my business. I have a personal ROTH IRA. But I’ve been hearing about brokerage accounts & idk where that fits in my wealth journey & what are it’s benefits? From what I know, they have no contribution limits but they’re not tax deferred. Do Backdoor ROTHs play into this or is this an IRA only type thing?

type_error

I kinda like the RH interface… I moved my ROTH over there to take advantage of that 3%

cleptocurrently

If you can make 400k a year do you really need a ROTH?

voltechs

How the hell do I get to do trades like this with my ROTH? This is genius! TAX FREE GAINS LETS GOOOOO

EpidemWick

Do this bro… really. 1. Open a Roth IRA: Put in your limit for the year… $7000 I think it is now. I use Schwab - I take my yearly amount an distribute it between ETFs or Indexes etc… I use SCHB, SCHD, SCHF, SCHP and finally SWPPX. Primarily most of it goes into the S&P 500 index… SWPPX. These are all ETFs and Indexes that mirror the stock market values. Your money is invested into the best companies and securities without you lifting a finger… Never take this money out! Add to it every year. I’ve contributed over the last 3 years and have yielded 9.43%… Reinvest all gains and dividends. This will dip at some point! But it will rise again. Never take it out, invest in only long term strategies… mine is all Schwab ETFs and indexes… 2. Take your remaining 43k… and put it into a HYSA or Money Marker Fund. You will get a safe 5% return for the short term… Use these short term safe gains to build a nest egg and save for a house… or another more expensive investment. The rates are good now because banks really need our money… they’re lending at very high interest rate loans that they are probably accounting for eventual defaults/foreclosures. Example… I am actually doing something similar. I opened a Schwab brokerage account and put 50k in. I’m taking that 50k and investing to SWVXX. This is a Schwab money market fund that is BASED on government high interest securities. This fund is not FDIC insured…but it will not fail you unless the banks fail… just monitor it. SWVXX has a 7 day net yield of 5.19%. It pays its dividends every month and compounds when you reinvest capital & dividend payments. That 50k will turn into 52.6K by the end of the year…. The benefit of using money market funds is that your still VERY liquid. You can sell all your assets and use it the next or same day…. Example…: say the rates begin to drop 2025 and now that money market is going down under 4%. You need a car because your Subaru shit the bed. Sell your money market fund assets and put a hefty down payment on a car. Oh , you see you can lock a 3.75% interest mortgage rate now?? Okay, take all those money market fund assets and buy a house.. 3. If you can - YOU MUST TRY to Keep taking out $500 a month to be ready to replenish your ROTH IRA next year…. Put that $500 into your HYSA or your brokerage account money market fund - it will help with compounding. 4. Still contribute to your work’s 401k and health savings account…. Esp if you’re young. My company matches what I put in up to 3%…. That’s FREE MoNeY! Put in the bare minimum if you must in order to get this. A Health Savings Account. It is great to put money into as well… contribute a tiny amount each check in your early 20s to build the habit. It can help you be taxed less and plans for your future health. They’re like untaxable IRA’s accounts… you can mirror your contributions to what you invested in your ROTH IRA to keep it simple. This is my strategy man…. I’m only 31 and have about 110k net worth, but I’m beginning to feel more dialed in. I’ve invested into individual stocks here and there and made a tiny bit, it also lost some. I profited 3k last year investing and selling in things like DLR… Individual stock investing is risky, but is playful. Be careful.

CUbuffGuy

This is so funny to me. I’m literally a financial professional who does this for my clients. Back door Roth IRA’s are a way to skirt the income requirements for Roth contributions. It doesn’t allow you to put any more in than it does someone else. It’s literally just contributing the max to an IRA, then rolling it over to a ROTH. Again, I don’t see how this makes any difference at all to what I said. As for making it easier to balance. I just don’t follow your logic. How is allocating 50% of your account to BTC and never touching that position again hard. Because currently that would be the same as vesting half your contributions to a seperate IRA and going 100% BTC. You never have to rebalance…. Say you did want to change allocations of other funds, you just do it and don’t touch the BTC…

OrangMiskin

What are you guys buying on your ROTH? 

nitroweb87

yeah I'ma convert all my BITO into IBIT, maybe add a little extra as well. setting up to hold for life in the ROTH

BetterFlow226

On the flip side, I have made a lot more than if I just put everything on ITOT. Granted, majority of my portfolio is in ITOT, I use my ROTH to pick stocks and I only pick stocks I use or see my close family use often and companies that I feel are here to stay due to some kind of moat or other advantage. For instance, COST, NVDA, MSFT, AMZN, AAPL, TSM. Considering decreasing my stake in Amazon

next_phase2

A backdoor ROTH conversion is important for people who think they’re going to be in the top income bracket during retirement.

sirbmed

Decided to sell all my chad MSTR shares to buy cucked VOO shares in my ROTH IRA ewwwwwwwwww

NatureBoyJ1

Money is in 401k & ROTH. Fidelity charges a transaction fee to buy Vanguard funds, not their own.

MassCasualty

Was this in a ROTH and you are 100% tax free! A+

LifeUser88

I have my 403 B with Fidelity because that was the best option, and I have my stocks and ROTH IRA in Schwab. I prefer Schwab, but not going to move my 403 B, which just sits there and grows.

MR_TOFU0508

IN ROTH???

No_Lie5768

So from what im gathering: If i have a stock in my ROTH with a $5000 profit and i decide to sell it and put that elsewhere, I will not be taxed on that $5,000 profit.

RubiksPoint

>Currently shorting UVIX as a long term position in ROTH How are you doing this in a Roth? Do you mean you have puts on UVIX?

dudeatwork77

That’s solid commitment doing it in your ROTH

TRex77

Super helpful! Thanks so much. I think the rule is that if you do a rollover (e.g., trad IRA --> 401k), you can't do another rollover (e.g., backdoor ROTH IRA) for 365 days. I am having trouble finding the rule, but I thought I had read this at some point. Thanks!

empire539

> Or is the 7k from a backdoor ROTH IRA conversion on top of the 43k (assuming no employer match) mega backdoor ROTH IRA conversion? This. Backdoor Roth is meant for people with high enough income that they can no longer make the yearly contribution to a Roth IRA through the normal means due to phase out limitations. Mega Backdoor Roth is an entirely different process that lets you contribute more to your Roth IRA per year than the regular yearly IRA contribution, by going through your after-tax 401k. The $7k isn't included in this because MBR funds are considered 401k contributions and not IRA contributions. So use BR to get the $7k annual contribution (assuming you're within the phase out range), and MBR to get an additional 43k (minus employer match).

bah2nah

Congrats, you just blew up this ROTH IRA. Fucking 🤡

squidd16

Trying to get advice on what to do with a brokerage account I’ve funded before being fully educated on tax advantaged accounts. I have about $23k (up 12.5% lifetime) sitting in there passively invested but i’m thinking it might be a better idea to sell some investments and use this to fund my ROTH for the next two years. If I do this I should be able to put all $7k I would’ve contributed to the ROTH into my 401(k) for this year. Just curious if anyone sees any big disadvantages to this plan or if it seems sound.