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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limeyx
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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 limeyx »

220volt wrote: Wed Jan 02, 2019 3:52 pm $13k went in VT immediately today.

I never knew how many market timers are actually on this forum until I read this thread. Buy dips, wait until a first low, go in on a down day, keep cash for later purchases etc...
Just funded our 2019 Roths. Cue a 6 month market decline from today onwards now !
limeyx
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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 limeyx »

220volt wrote: Wed Jan 02, 2019 6:29 pm
Catfish Plumber wrote: Wed Jan 02, 2019 4:20 pm How are you able to buy an ETF with 2019 IRA funds on the first trading day?

Best I can seem to find involves transferring money into a settlement fund for a purchase at a later date.
I transfer money from my Capital One 360 directly into Vanguard's settlement fund and the money is available to buy anything I want in 5 minutes.
Same here (but from Ally)
FinancialRookie
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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 FinancialRookie »

I would if I had $12k laying around. My Roth contributions will be sporadic throughout the year due to fluctuations in my income as the year goes along. Roth money this year will be coming from overtime and side job money.
car733
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Re: Should I fully fund IRA each January?

Post by car733 »

DouroBound wrote: Wed Jan 02, 2019 7:04 pm Why change? If your lump summing in the past was part of your plan, why not just stick to it? Unless, of course, you've decided that DCA suits you better from an emotional perspective and are committed to doing that going forward. That's perfectly reasonable. Just make sure you aren't switching plans because of some sense that things are bound to drop in the short term, as that rings of market timing. If you get burned, you might find yourself switching back next year, forever choosing the strategy that was best the prior year. I'd suggest sticking to whatever plan makes the most sense to you as a general matter, ignoring your feelings about the current state of the market.

I lost out from lump-summing last year (I made 80% of my annual investments pretty much right at the late January peak), but I'm planning to lump sum as soon as the money is available again this year. I may lose out again, but the logic of lump summing is compelling to me, so I cannot justify deviating.
Lump sum is also less effort but my cash reserves are a bit lower than the previous year and I would like to distribute the contribution across 2019. Perhaps I end up dollar cost averaging first part of the year and then lump sum.

As long as I max it, I don't see a real difference between lump sum and dca.
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sergeant
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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 sergeant »

livesoft wrote: Thu Jan 03, 2019 3:32 pm Woo-hoo! I even got an alert that bond funds have popped today! Win! Win!
Me too! See you at the sushi counter.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.
Thesaints
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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 Thesaints »

limeyx wrote: Thu Jan 03, 2019 4:01 pm Just funded our 2019 Roths. Cue a 6 month market decline from today onwards now !
Next time let us know in advance, so we can short.
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 »

sergeant wrote: Thu Jan 03, 2019 6:31 pm
livesoft wrote: Thu Jan 03, 2019 3:32 pm Woo-hoo! I even got an alert that bond funds have popped today! Win! Win!
Me too! See you at the sushi counter.
We may only be eating sushi for 2 weeks and then no more for the rest of the year. :(
Wiki This signature message sponsored by sscritic: Learn to fish.
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billthecat
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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 billthecat »

billthecat wrote: Wed Jan 02, 2019 9:58 am Yes, moved $7,000 from taxable to traditional IRA, converted it to Roth, and placed an order for SWTSX (Schwab total stock market) in full.

Because of that, you may want to wait, because I expect the market to decline after today. :(
I did try to warn you all...

I front load my 401k during January, so expect further declines in February.
We cannot direct the winds but we can adjust our sails.
NestEggLove
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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 »

Elena wrote: Tue Jan 01, 2019 3:05 pm
NestEggLove wrote: 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.
Hmmm.... they are all linked back and forth (to be able to pull and push). I never noticed that the RothIRA contribution worked differently than the brokerage acct., where one has to first move the funds to the settlement fund (two days), then wait for them to settle (one day or two), and by the time that happens the mini-drop might be over (which is why I never operate that way). So, the RothIRA contribution price gets "locked in", even when it may be in a "brokerage link" acct. of some sort.
First learned item in 2019, thank you, NestEggLove!
👍🏻 Sure Elena, I don’t have a brokerage link account, but know with Roths at Vanguard at least you can get the same day price if you purchase before 4 e.s.t. and you’ve previously linked your bank account.
limeyx
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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 limeyx »

Thesaints wrote: Thu Jan 03, 2019 6:44 pm
limeyx wrote: Thu Jan 03, 2019 4:01 pm Just funded our 2019 Roths. Cue a 6 month market decline from today onwards now !
Next time let us know in advance, so we can short.
Heh heh heh
Xrayman69
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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 Xrayman69 »

KnowNth wrote: Wed Jan 02, 2019 1:22 pm What is your definition of big drop? 10%? 20%? Thanks.
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.
Over 10% YTD. Glad I dollar cost average by putting lump sums as soon as they clear and convert backdoor ROTH in the same manner annually. I’ve never been good at market timing but comfortable that most years the value on December 31 will be greater than January 2.

Sucked in January 2018 but the prior decade January investing has worked out on average pretty well.
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