Roth contributions

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jatindrj
Posts: 6
Joined: Sat Jan 26, 2013 9:09 pm

Roth contributions

Post by jatindrj »

Is it better to have monthly investments from a checking or savings account or to contribute the max in one shot? Will you get more earnings if you max your contributions early in the year? Or does it not matter?

I have a Vanguard TRF (2055). Its looks like its gone up quite a bit in price since my initial investment and is higher than other TRF's and was wondering if this is a good sign or not and if I should throw money into it.
NYBoglehead
Posts: 1588
Joined: Fri May 25, 2012 9:38 am

Re: Roth contributions

Post by NYBoglehead »

Develop a plan and stick with it. There is no right way to do it. The market goes up and goes down. You could just as easily lose more money by investing one lump sum as you could make money. So I'd stick with your plan and don't deviate no matter what is going on with the market.
dickenjb
Posts: 2941
Joined: Tue Jan 05, 2010 12:11 pm
Location: Philadelphia PA

Re: Roth contributions

Post by dickenjb »

In my opinion it is best to invest in January of the current year as soon as one can if one is 100% sure their income will not be over the limit. If any doubt, fund the Roth in Q1 of the following year once you are certain you have not exceeded the income limit.
ilisira
Posts: 130
Joined: Tue Mar 11, 2008 3:04 pm

Re: Roth contributions

Post by ilisira »

dickenjb wrote:In my opinion it is best to invest in January of the current year as soon as one can if one is 100% sure their income will not be over the limit. If any doubt, fund the Roth in Q1 of the following year once you are certain you have not exceeded the income limit.
I have been doing this, and last year, we could not go ROTH route, but had to do backdoor conversion (and learning about this the absolute last day was not fun :) ).
If one knows income limit is/might be exceeded, the backdoor can be done within the year as well...
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