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.
Roth contributions
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Re: Roth contributions
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.
Re: Roth contributions
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.
Re: Roth contributions
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 ).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.
If one knows income limit is/might be exceeded, the backdoor can be done within the year as well...