Maxed out contributions help!!

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Topic Author
Gillisjp
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Maxed out contributions help!!

Post by Gillisjp »

I have maxed out my contributions in rIRA for the year. Where do you suggest I put my money next? I dont have access to a 401k so that isn't an option. Thanks for the help
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mhc
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Re: Maxed out contributions help!!

Post by mhc »

If you have a qualified high deductible medical plan, you could fund an HSA.

You could pay down high interest debt.

You could invest in a taxable account.

If you have kids, a 529 or Coverdell.
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LateStarter1975
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Re: Maxed out contributions help!!

Post by LateStarter1975 »

mhc wrote:If you have a qualified high deductible medical plan, you could fund an HSA.

You could pay down high interest debt.

You could invest in a taxable account.

If you have kids, a 529 or Coverdell.

+1
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Topic Author
Gillisjp
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Re: Maxed out contributions help!!

Post by Gillisjp »

mhc wrote:If you have a qualified high deductible medical plan, you could fund an HSA.

You could pay down high interest debt.

You could invest in a taxable account.

If you have kids, a 529 or Coverdell.
No medical plan, no debt other than mortgage, and no kids.

Taxable account is what I was looking for but was looking for some recommendations. Thanks for the help!
livesoft
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Re: Maxed out contributions help!!

Post by livesoft »

I'll give another recommendation for a taxable account. Very few people complain about having a few million dollars in a taxable account.
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Longtimelurker
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Re: Maxed out contributions help!!

Post by Longtimelurker »

Gillisjp wrote:I have maxed out my contributions in rIRA for the year. Where do you suggest I put my money next? I dont have access to a 401k so that isn't an option. Thanks for the help
You say you don't have access to a 401k. Why is that? Are you self-employed? If so, you can start your own Solo (individual) 401k.
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.
LongerPrimer
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Re: Maxed out contributions help!!

Post by LongerPrimer »

Deferred VA. Business investment. RE. Tax efficient funds.
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Watty
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Re: Maxed out contributions help!!

Post by Watty »

Put the most appropriate investments into a taxable account.

http://www.bogleheads.org/wiki/Principl ... _placement


If you are in a low to moderate tax bracket then using the money to do Roth conversions would be an option to consider.

There are lots of opinions but depending on your situation paying down your mortgage if you have one would be another option to consider.
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Meg77
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Re: Maxed out contributions help!!

Post by Meg77 »

Investing in a taxable fund can look just like investing in your IRA - it might even be with the same funds. Many investors say an S&P 500 index or total US stock market index is all you need, but many Bogleheads champion the "three fund portfolio" for maximum diversity for the lowest price (choose a cheap US stock index, US bond index, and an international index fund; pick your target allocaiton to each category; rebalance annually).

One thing to consider is that holdings with higher dividend yields, interest, or capital gains belong in tax sheltered accounts so that you don't have to pay taxes each year on those distributions (think bonds and REITs). Taxable accounts are better for funds with low tunrover and distributions (stock index funds, international funds). Another factor might be trying to quailify for Admiral shares, assuming you are investing at Vanguard and have over $10,000 in one account or the other. It usually takes a $10,000 minimum to get the cheaper share class, so it may be better to have $10K in one fund (say, the Vanguard 500 index Admiral Shares) versus having $5K in two funds within one account.

If you tell us how much money you have nad what your IRA is invested in we can provide specifics.
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Jack FFR1846
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Re: Maxed out contributions help!!

Post by Jack FFR1846 »

Max iBonds then SCHB broad market etf at Schwab (no fee). No tax till you sell and even then, it can be LT cap gains. ER 0.04%
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Topic Author
Gillisjp
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Re: Maxed out contributions help!!

Post by Gillisjp »

Longtimelurker wrote:
Gillisjp wrote:I have maxed out my contributions in rIRA for the year. Where do you suggest I put my money next? I dont have access to a 401k so that isn't an option. Thanks for the help
You say you don't have access to a 401k. Why is that? Are you self-employed? If so, you can start your own Solo (individual) 401k.
I am self employed and didn't realize till just now that you could do have your own 401k. I am going to do that and also put more on my mortgage! Thanks for the help!
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Don Christy
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Re: Maxed out contributions help!!

Post by Don Christy »

You say you don't have medical insurance.

Perhaps reconsider that decision and choose a plan with an HSA.
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Longtimelurker
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Re: Maxed out contributions help!!

Post by Longtimelurker »

Gillisjp wrote:
Longtimelurker wrote:
Gillisjp wrote:I have maxed out my contributions in rIRA for the year. Where do you suggest I put my money next? I dont have access to a 401k so that isn't an option. Thanks for the help
You say you don't have access to a 401k. Why is that? Are you self-employed? If so, you can start your own Solo (individual) 401k.
I am self employed and didn't realize till just now that you could do have your own 401k. I am going to do that and also put more on my mortgage! Thanks for the help!
Great. There is a lot of paperwork (like 30-pages worth) to fill out. I suggest Vanguard. Its painful 1 time, then its set up for life. Good luck.
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.
Ldevelopment
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Re: Maxed out contributions help!!

Post by Ldevelopment »

I'm in a similar boat as you, no traditional access to 401k. Although my wife has a pension coming. So if you're considering retiring early (e.g. In your 40s or 50s) I'd put it in a taxable account to allow for maximum flexibility while allowing your roths to continue to compound. If you don't want to retire early, start a self employed 401k. Or contribute to all three if you have the means or need more for your retirement lifestyle.
placeholder
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Re: Maxed out contributions help!!

Post by placeholder »

Longtimelurker wrote:I suggest Vanguard.
I actively advise against Vanguard for i401k because they don't accept incoming rollovers and don't allow Admiral shares or ETFs so you can plans that are cheaper and more flexible with other custodians.
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