Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

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Global100
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Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Global100 » Mon Dec 31, 2018 9:21 pm

January 1st is approaching. Are you going to max your IRA contribution and then invest it all in equities for the first market day of the new year?

Happy New Year Bogleheads!

livesoft
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by livesoft » Mon Dec 31, 2018 9:24 pm

Nope. Never do that. I usually invest it on the first big drop of the year that goes below the 12/31 value.

There are very few years when the stock market doesn't go below the 12/31 value, so my investment that year almost always outperforms the total return for the year.
Last edited by livesoft on Mon Dec 31, 2018 9:26 pm, edited 1 time in total.
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frugalmama
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by frugalmama » Mon Dec 31, 2018 9:47 pm

No, in large part because I don't have huge chunks of cash like that to invest...it takes me all year to save up for the contribution for DH and so I DCA.

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Atomic
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Atomic » Mon Dec 31, 2018 9:51 pm

One Roth goes VTSAX, the other BND. Maxed on January 2.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by grabiner » Mon Dec 31, 2018 9:59 pm

I do it as quickly as possible, but not on the first day because I need two steps for a backdoor Roth IRA. I cannot make a contribution directly to a mutual fund in the IRA; instead, I contribute cash to the traditional IRA, then convert it to cash in the Roth IRA a few days later, and then use the cash to buy a mutual fund.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Grt2bOutdoors » Mon Dec 31, 2018 10:02 pm

grabiner wrote:
Mon Dec 31, 2018 9:59 pm
I do it as quickly as possible, but not on the first day because I need two steps for a backdoor Roth IRA. I cannot make a contribution directly to a mutual fund in the IRA; instead, I contribute cash to the traditional IRA, then convert it to cash in the Roth IRA a few days later, and then use the cash to buy a mutual fund.
Same here.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by ThrustVectoring » Mon Dec 31, 2018 10:02 pm

livesoft wrote:
Mon Dec 31, 2018 9:24 pm
Nope. Never do that. I usually invest it on the first big drop of the year that goes below the 12/31 value.

There are very few years when the stock market doesn't go below the 12/31 value, so my investment that year almost always outperforms the total return for the year.
Picking up nickles in front of a steamroller "almost always outperforms" staying home. You might outperform most years, but the years where you don't you'll really regret it.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by b4nash » Mon Dec 31, 2018 10:42 pm

Math and history says you should.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by bgf » Mon Dec 31, 2018 10:45 pm

i tax loss harvested today, and ill invest all $12000 in our Roths on the 2nd.
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MathWizard
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by MathWizard » Mon Dec 31, 2018 11:00 pm

No , I'll do it for 2018 (the previous year) after I do my 2018 taxes.
I only deviate from that in the few years when the market drops by a lot , and when I think I can see the bottom, then I put 100% VTSAX in my ROTH .
I did this in 2001 and 2003. I didn't do it in 2008 because I couldn't see a bottom. I did the normal think, contributing to a 2008 in Mar 2009. I did not have enough for 4 IRAs or I would have contributed for 2009 as well.
With the first child in college, there was not enough liquid savings.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by fire4fun » Mon Dec 31, 2018 11:01 pm

livesoft wrote:
Mon Dec 31, 2018 9:24 pm
Nope. Never do that. I usually invest it on the first big drop of the year that goes below the 12/31 value.

There are very few years when the stock market doesn't go below the 12/31 value, so my investment that year almost always outperforms the total return for the year.
Do you do this intraday? I thought when you put a same day buy order in Vanguard, it goes off of the end-of-day trading price.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by fire4fun » Mon Dec 31, 2018 11:03 pm

Grt2bOutdoors wrote:
Mon Dec 31, 2018 10:02 pm
grabiner wrote:
Mon Dec 31, 2018 9:59 pm
I do it as quickly as possible, but not on the first day because I need two steps for a backdoor Roth IRA. I cannot make a contribution directly to a mutual fund in the IRA; instead, I contribute cash to the traditional IRA, then convert it to cash in the Roth IRA a few days later, and then use the cash to buy a mutual fund.
Same here.
Isn't there a way to speed this up? I remember WCI or someone was discussing a faster way to circumvent this issue doing a Backdoor Roth.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by digarei » Mon Dec 31, 2018 11:25 pm

...

Yes, I’ll be making the maximum contribution to our Roth IRAs on the first investing day... but not all of those funds will be invested in equities.

I like to simultaneously rebalance by using the Optimal Rebalancing Calculator. Our portfolio’s approximate Asset Allocation is 80/20. I expect that some of this contribution will be directed to bond index funds.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by rob » Mon Dec 31, 2018 11:37 pm

I am always a year late on IRA's because I hover near the limit for Roth depending on bonus, so easier to not contribute ahead but I would if that were not a concern.

This year however, my employer allows a separate contribution rate to the catchup 401K and since I'm very likely to be moving employers early in the year... I've canceled my regular 401K contribute and hitting only catchup hard... not likely to get paid for a while as will all go into catchup.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by TIAX » Tue Jan 01, 2019 12:19 am

We are in the process of updating year-end retirement calculations. During this time, you will not be able to contribute to new or existing retirement accounts online, but you can perform any other functions on our site. Please return to our site at a later time to complete your transaction. We apologize for this temporary inconvenience.
Why is Vanguard ruining Bogleheads' New Year's Eve plans?

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by BogleMelon » Tue Jan 01, 2019 12:25 am

TIAX wrote:
Tue Jan 01, 2019 12:19 am
We are in the process of updating year-end retirement calculations. During this time, you will not be able to contribute to new or existing retirement accounts online, but you can perform any other functions on our site. Please return to our site at a later time to complete your transaction. We apologize for this temporary inconvenience.
Why is Vanguard ruining Bogleheads' New Year's Eve plans?
I agree! So annoying! I am wondering if fidelity is accepting now new contributions
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by badger42 » Tue Jan 01, 2019 12:35 am

Yes and yes. I already know I will need to go to the backdoor Roth route so there is no point on waiting to see income numbers, and tax-efficient placement means any Roth money goes to equities. Current market conditions also mean this will move things towards the allocation targets in our IPS so no rebalancing in other accounts should be needed.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by livesoft » Tue Jan 01, 2019 7:40 am

fire4fun wrote:
Mon Dec 31, 2018 11:01 pm
livesoft wrote:
Mon Dec 31, 2018 9:24 pm
Nope. Never do that. I usually invest it on the first big drop of the year that goes below the 12/31 value.

There are very few years when the stock market doesn't go below the 12/31 value, so my investment that year almost always outperforms the total return for the year.
Do you do this intraday? I thought when you put a same day buy order in Vanguard, it goes off of the end-of-day trading price.
As far as I am aware, no mutual fund trades at any price except the NAV set at the end of the day after the market closes. But exchange-traded funds are different. See: https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds

I use both, so sometimes intraday and sometimes end-of-day.

And in those years when a fund is always higher than the price it had on 12/31, I may buy a different fund that the price is lower. Here is a chart from 2014 which is a good example of this:

Image

My point is don't be bullied into buying on the first day of the year by posters at bogleheads.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by dharrythomas » Tue Jan 01, 2019 10:18 am

No. It will be around the end of January.

It used to be in June, when I received a periodic payment, but that ended.

I’ll wait to sell some Total World Stock until 30 days after the dividend. Then we’ll fund LifeStrategy Moderate Growth in our Roth accounts. Currently all new investment is in the TSP (4% traditional, 9% Roth) and we move money from taxable into the Roth IRA. This also helps me reduce risk as we go along, combined with the Target Date Funds in traditional IRAs and the TSP.

Sorry, we’re past the stage of trying to be exciting and I keep going back to Benjamin Graham who said the default asset allocation should be 50/50 and that everyone should stay in the range of 75/25 to 25/75.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Stinky » Tue Jan 01, 2019 10:20 am

b4nash wrote:
Mon Dec 31, 2018 10:42 pm
Math and history says you should.
Agreed. I will be doing it tomorrow.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Geneyus » Tue Jan 01, 2019 10:28 am

I'm 100% VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) due to having 30 years left to work and invest. I'm thinking about contributing my $6k in my Roth to VFIFX (Vanguard Target Retirement 2050 Fund Investor Shares) to scale the stocks back a tad bit until I know what 2019 will be like.

I'm also considering moving my entire amount to VFIFX, which is currently 90% stocks:

Vanguard Total Stock Market Index Fund Investor Shares 54.40%
Vanguard Total International Stock Index Fund Investor Shares 35.60%
Vanguard Total Bond Market II Index Fund Investor Shares† 7.00%
Vanguard Total International Bond Index Fund Investor Shares 3.00%

To answer the question, I will likely max both of our Roth IRA's later today or tomorrow. Definitely within the first few days of the year.
Last edited by Geneyus on Tue Jan 01, 2019 10:29 am, edited 1 time in total.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by overthought » Tue Jan 01, 2019 10:29 am

livesoft wrote:
Mon Dec 31, 2018 9:24 pm
Nope. Never do that. I usually invest it on the first big drop of the year that goes below the 12/31 value.

There are very few years when the stock market doesn't go below the 12/31 value, so my investment that year almost always outperforms the total return for the year.
livesoft wrote:
Tue Jan 01, 2019 7:40 am
And in those years when a fund is always higher than the price it had on 12/31, I may buy a different fund that the price is lower. Here is a chart from 2014 which is a good example of this:

Image
I must be missing something... nothing about the chart suggests that strategy was an optimal choice in 2014:
  • Buying VTSAX on 1 Jan gave ~35% return for the year
  • Buying VTIAX at that dip in late May gave ~16% for the year
  • Buying VTSAX on that same day in May gave ~19% for the year
I'd happily take 16% for a year, especially if it's part of a broader year to year pattern, but I'm not sure what argument this chart was making?

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Old_Dollar » Tue Jan 01, 2019 10:45 am

I’m going to make my contribution then DCA it in. If the volatility continues I want to buy those declines.
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mtmingus
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by mtmingus » Tue Jan 01, 2019 10:52 am

Just maxed out for both my wife and myself for 2019. Currently in cash, will gradually move into target date funds.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by noraz123 » Tue Jan 01, 2019 10:55 am

overthought wrote:
Tue Jan 01, 2019 10:29 am
livesoft wrote:
Mon Dec 31, 2018 9:24 pm
Nope. Never do that. I usually invest it on the first big drop of the year that goes below the 12/31 value.

There are very few years when the stock market doesn't go below the 12/31 value, so my investment that year almost always outperforms the total return for the year.
livesoft wrote:
Tue Jan 01, 2019 7:40 am
And in those years when a fund is always higher than the price it had on 12/31, I may buy a different fund that the price is lower. Here is a chart from 2014 which is a good example of this:

Image
I must be missing something... nothing about the chart suggests that strategy was an optimal choice in 2014:
  • Buying VTSAX on 1 Jan gave ~35% return for the year
  • Buying VTIAX at that dip in late May gave ~16% for the year
  • Buying VTSAX on that same day in May gave ~19% for the year
I'd happily take 16% for a year, especially if it's part of a broader year to year pattern, but I'm not sure what argument this chart was making?
I think the point is VTSAX never went below the Jan 1 price, so instead of investing in that fund, Livesoft looked for a fund that did go below its Jan 1st price, in this case VTIAX (looks like in June VTIAX was below its Jan 1st price).

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by MotoTrojan » Tue Jan 01, 2019 10:57 am

Geneyus wrote:
Tue Jan 01, 2019 10:28 am
I'm 100% VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) due to having 30 years left to work and invest. I'm thinking about contributing my $6k in my Roth to VFIFX (Vanguard Target Retirement 2050 Fund Investor Shares) to scale the stocks back a tad bit until I know what 2019 will be like.

I'm also considering moving my entire amount to VFIFX, which is currently 90% stocks:

Vanguard Total Stock Market Index Fund Investor Shares 54.40%
Vanguard Total International Stock Index Fund Investor Shares 35.60%
Vanguard Total Bond Market II Index Fund Investor Shares† 7.00%
Vanguard Total International Bond Index Fund Investor Shares 3.00%

To answer the question, I will likely max both of our Roth IRA's later today or tomorrow. Definitely within the first few days of the year.
Don’t market time.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by AerialWombat » Tue Jan 01, 2019 11:02 am

Global100 wrote:
Mon Dec 31, 2018 9:21 pm
January 1st is approaching. Are you going to max your IRA contribution and then invest it all in equities for the first market day of the new year?

Happy New Year Bogleheads!
Sort of. $6k in to back door Roth tomorrow. $19,000 into solo 401k for exmployee contribution. DCA in the employer contribution rest of the year.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Elena » Tue Jan 01, 2019 12:03 pm

One question for those who would rather wait for some kind of drop:
¿Where do you keep the funds while waiting? I am asking, because normally my earmarked contribution is in the savings acct., and by the time it hits the IRA (two or three days) the drop might be over. I have this same issue with any kind of savings earmarked for investment: I have the chunk of cash, I see a good moment to invest, but then the money takes a while to be transferred from another institution and the moment is gone.

To answer the OP's question, I always do a lump sum on Jan. 2nd, but this year my funds are tied in the Ally bonus promotion until Jan. 15th.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by livesoft » Tue Jan 01, 2019 12:19 pm

Elena wrote:
Tue Jan 01, 2019 12:03 pm
One question for those who would rather wait for some kind of drop:
¿Where do you keep the funds while waiting?
I don't have any funds waiting perhaps because of my unique situation.

1. We may not have any earned income each year since I am retired and my spouse may decide to quit at any moment.

2. We have assets in a taxable account and they have paid December distributions, but most all of those distributions go to pay big bills like annual property tax and insurance that are due soon.

3. Yes, we could sell some assets in taxable to put into Roth, but we don't pay taxes on our gains in a taxable account anyways, so those assets are very "Roth-like" in that regard except for one thing: If we lose money in taxable, we can try to make it tax-deductible. That's not the case for Roth IRAs, so our preference is to put money in taxable until there is less chance that something new purchased in the Roth IRA will have a loss. It doesn't always work out that way.

4. We don't segregate our portfolio thinking and instead treat it as all one big portfolio, so cash is only in checking, and everything is essentially invested in something. A difference of 3 to 9 months of moving money from one account that is invested tax-free to another account that is invested tax-free is not a big deal to us.

Bottom line: We don't contribute to Roth IRAs until we have earned income to contribute to Roth IRAs.
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by NestEggLove » Tue Jan 01, 2019 12:21 pm

Elena,
If you electronically link your savings to your other investment account you can get the same day price if you make an investment purchase.

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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Toons » Tue Jan 01, 2019 12:22 pm

I would And ......
I did for years.1997-2011
Time Not Timing.
Happy New Year
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Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by Candor » Tue Jan 01, 2019 12:35 pm

I just processed my contribution. To be honest I did debate whether I should wait a little and try and time it with all the recent volatility but it's a small % of my overall equity exposure so I really didn't see the point. I don't plan on touching it for 10 plus years and I have 28% in CD's and I-bonds so I'm comfortable with the short term risk if the market goes awry.

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Is everyone maxing out their Roth IRA today? AA question too.

Post by fortfun » Tue Jan 01, 2019 12:54 pm

[Thread merged into here, see below (next page). --admin LadyGeek]

Was planning to dump 12k in for me and DW later today. Should I know anything before I make the payment.

I know generally people recommend Tot US and Tot Int for these Roth IRAs but if you may need to access some of that money in 5 to 7 years, is there anything wrong with investing in a 2025 TDF? (Due to possible early retirement. Prior to 401Ks, 403Bs, etc being unavailable for a time.) Of course, if we did TDFs, I'd adjust our AA in 403bs and 401ks.

clip651
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by clip651 » Tue Jan 01, 2019 1:03 pm

Markets aren't open today. So if you're buying mutual funds, you can put an order in today, but it won't go through until tomorrow's close.

I don't use ETFs, so I'm not sure of the details on the procedures for buying those, but I think you don't generally want to put in orders for those while the market is closed.

best wishes,
cj

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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by mortfree » Tue Jan 01, 2019 1:04 pm

I went to transfer $6k for my 2019 Roth via Vanguard website (from Vanguard taxable MM fund) but the transfer from my external bank account hadn’t settled so I wasn’t able to make the contribution. I had $3k in Vanguard already but the other half was still being transferred.


Nothing wrong with a target date fund. Slightly higher ER but hands off approach.
Last edited by mortfree on Tue Jan 01, 2019 1:07 pm, edited 1 time in total.

nolesrule
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by nolesrule » Tue Jan 01, 2019 1:06 pm

I don't have any qualifying earned income in 2019 to make IRA contributions yet. We wait till we get paid.

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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by Helo80 » Tue Jan 01, 2019 1:07 pm

nolesrule wrote:
Tue Jan 01, 2019 1:06 pm
I don't have any qualifying earned income in 2019 to make IRA contributions yet. We wait till we get paid.

You can still contribute if you anticipate earning eligible income this year.

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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by lazylarry » Tue Jan 01, 2019 1:11 pm

Tdf fine. However , I would not invest in stocks if you anticipate withdrawing that potentially in 5 yrs. Could you tolerate a 50% loss?
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by Cycle » Tue Jan 01, 2019 1:11 pm

Yes, just did. max in VTIAX/VTSAX, via backdoor. https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
Never look back unless you are planning to go that way

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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by dodecahedron » Tue Jan 01, 2019 1:22 pm

Helo80 wrote:
Tue Jan 01, 2019 1:07 pm
nolesrule wrote:
Tue Jan 01, 2019 1:06 pm
I don't have any qualifying earned income in 2019 to make IRA contributions yet. We wait till we get paid.

You can still contribute if you anticipate earning eligible income this year.
Yes, but if I get run over by a bus tomorrow morning and somehow wind up with no actual earned income in 2019, I would be leaving an additional unnecessary issue for my heirs to unwind. I will wait. My tax-advantaged is all conservatively invested fixed income anyway, so no super big hurry. TIAA Trad in my 403b and Schwab TIPS fund in my Roth IRA. Equities are in my taxable account.

Edited to add: actually--truth be told--I have yet to make my 2018 contribution! Given the vicissitudes of life and various twists and turns (charitable giving projects, enrolling in part-time classes eligible for Lifetime Learning Credit, will young adult be a dependent or not, what will my filing status be, will I buy into a community solar array generating tax credits as well as electricity, etc.) I have a habit of waiting until close to the last minute to make my IRA contributions. Generally I make my contributions in February or March of the following year, once my prior year tax picture seems fully clear and the ink is dry on all last minute Congressional tax law changes. We did have a recent year where Congress passed retroactively effective legislation in January affecting the prior year in a way that was relevant to my choice between Roth and tIRA contributions. (Yes, I know I could recharacterize but I like to hold down the number of ¨moving parts¨ in my financial life.)
Last edited by dodecahedron on Tue Jan 01, 2019 1:35 pm, edited 1 time in total.

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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by Bmac » Tue Jan 01, 2019 1:29 pm

Cycle wrote:
Tue Jan 01, 2019 1:11 pm
Yes, just did. max in VTIAX/VTSAX, via backdoor. https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
How did you backdoor for 2019 today? I contributed the 2019 max for spouse and I to our TIRAs this morning (from taxable settlement fund to TIRA settlement fund) but will not be able to do the backdoor conversion to our Roth IRAs until earliest January 3rd, once the first step in the process has cleared. This is all at Vanguard.

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Cycle
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by Cycle » Tue Jan 01, 2019 1:37 pm

Bmac wrote:
Tue Jan 01, 2019 1:29 pm
Cycle wrote:
Tue Jan 01, 2019 1:11 pm
Yes, just did. max in VTIAX/VTSAX, via backdoor. https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
How did you backdoor for 2019 today? I contributed the 2019 max for spouse and I to our TIRAs this morning (from taxable settlement fund to TIRA settlement fund) but will not be able to do the backdoor conversion to our Roth IRAs until earliest January 3rd, once the first step in the process has cleared. This is all at Vanguard.
I only initiated the IRA purchase (federal money market settlement fund). Markets aren't even open. That will settle in a few days, at which point I will convert it immediately to Roth.
I view it as just a single 3-5 day transaction :sharebeer
Never look back unless you are planning to go that way

Bmac
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by Bmac » Tue Jan 01, 2019 1:39 pm

Cycle wrote:
Tue Jan 01, 2019 1:37 pm
Bmac wrote:
Tue Jan 01, 2019 1:29 pm
Cycle wrote:
Tue Jan 01, 2019 1:11 pm
Yes, just did. max in VTIAX/VTSAX, via backdoor. https://www.bogleheads.org/wiki/Backdoor_Roth_IRA
How did you backdoor for 2019 today? I contributed the 2019 max for spouse and I to our TIRAs this morning (from taxable settlement fund to TIRA settlement fund) but will not be able to do the backdoor conversion to our Roth IRAs until earliest January 3rd, once the first step in the process has cleared. This is all at Vanguard.
I only initiated the IRA purchase. Markets aren't even open. That will settle in a few days, at which point I will transfer it immediately convert it to Roth.
I view it as just a single 3-5 day transaction :sharebeer
Ok. I was just wondering if you knew some backdoor Roth trick I didn’t know.

L1tt1eMinon
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by L1tt1eMinon » Tue Jan 01, 2019 2:00 pm

Yep! Contributed 12k to me and DW Roth. Have been doing this for few years already.

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changingtimes
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by changingtimes » Tue Jan 01, 2019 2:14 pm

[deleted, will ask elsewhere]
Last edited by changingtimes on Tue Jan 01, 2019 3:06 pm, edited 1 time in total.

kacang
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Location: CA

Re: Will you contribute the max to your IRA and then invest it all in equities for the first market day of the new year?

Post by kacang » Tue Jan 01, 2019 2:32 pm

Timely reminder. Just maxed tIRA for both of us, will convert to Roth in a few days and all funds will go to VTSAX

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cap'n crunch
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by cap'n crunch » Tue Jan 01, 2019 2:41 pm

i was debating whether to wait a couple days hoping for another massive drop or just chuck it in and be done with it..but i got a hunch a ton of people are going to take advantage of the market drop already and throw their IRA money in Jan 2 and drive the market up slightly for the next couple days,not get the market drop i was hoping for..

Compound
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Re: Is everyone maxing out their Roth IRA today? AA question too.

Post by Compound » Tue Jan 01, 2019 2:51 pm

cap'n crunch wrote:
Tue Jan 01, 2019 2:41 pm
i was debating whether to wait a couple days hoping for another massive drop or just chuck it in and be done with it..but i got a hunch a ton of people are going to take advantage of the market drop already and throw their IRA money in Jan 2 and drive the market up slightly for the next couple days,not get the market drop i was hoping for..
No need to wait on establishing the Roth. You can open the IRA with a money market fund. Then buy whatever your fund of choice is once you’re ready. That said, most people's crystal balls are pretty hazy, as you’ve alluded to, so not much point to market timing.

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