Max 401(k) even with esop Max 403(b) even with a pension. Max HSA Little bit to 529s Investment properties Little bit to brokerage Use every other dollar to travel and do cool life shit to make memories
I do max 401k, max HSA, max 2 Roth IRAs, and 3 429s. Have a cash balance pension plan in there too. Any leftover I do some Megabackdoor Roth. But low raises, inflation, and 3 girls have cut back on that.
My pension from a previous job hit my IRA on Thursday. I invested it on Friday. Of course we have this beautiful Tuesday.
U.S. stocks may see a 7% to 10% pullback over next 2 months: Fundstrat’s Tom Lee https://www.marketwatch.com/story/s...ext-2-months-says-fundstrats-tom-lee-23127977
Curious on people's thoughts what to do with some cash right now. Sold an investment property and sitting on about $40K that I was going to put into my brokerage account. Sat out Friday cause I thought there might be a dip yesterday, which I was right about. I put in 10K yesterday on the ride down but now a little hesitant to sink more in. I know time in market beats everything but was just curious what some of you a little more versed in this might do in my situation.
You know as a financial adviser, I have advised many people to explore timing the market. Does it work for those people? No, it never does, but people always delude themselves into thinking it might, but... but it might work for you.
If you want to access the cash in a year or less, perhaps hold off for a bit? Anything else, get it in. Note: I am not FINRA registered and do not hold a Series 7/63/65 license.
Yes, I know I can't time the market but surely there are some times not to dump a ton of cash in? Assuming you wouldn't have dumped a bunch in yesterday morning? I got it though, ETF's and time in market.
You do understand you're contradicting yourself in the first sentence. The market could end up 2% today or down another 2% no one has any clue.
I’ve kept cash in a CD if I want to have low risk access to it and still get solid interest. Otherwise if you don’t need access to it and your time horizon is decently long just dump it in.
I'm no better, I will 100% consider trying to time the market next time I have a lump of cash to throw in.
Every time I add cash intended for investing I immediately buy etfs. Sometimes the market takes a shit the next day and it pisses me off but I can’t ever let it sit.
I get it, just hard to pull the trigger with zero hesitation. I'm also fairly new to the stock market game, was on the sideline for years while doing real estate investing.
I remember maybe 8 years ago I did some Ira contributing around tax time and didn’t immediately invest because I thought the market might correct. I lost like 30-40% growth waiting whatever it was I waited. That was enough of a lesson to get me to never fuck around like that.
Do you need this money in the short-term, or is it for retirement in 20+ years? If it's for retirement, put it in as soon as you have it. What happens to the market in the next day/week/month/year is completely irrelevant unless you actually have the money earmarked for a certain need in the short-term.
The old story about over the last 25 years if you missed the 10 biggest positive days in the market, your overall returns were like 40% of those who were invested on those 10 days. 10 days out of roughly 6,000 for 2.5x more profit. As others have said, if you don’t need the money in the next year, dump it in big fella.
If you throw it in and the bottom falls out you will tell yourself "I KNEW it" but you didn't know it. That was just the fear speaking.
Definitely agree on the overall lesson, but that "miss the best 10 days" exercise has always been for me more just a lesson about not panic selling. The best 10 days are almost always in periods of extreme volatility and just rebounds after horrible days. So sure if you're waiting around to put money in you may miss the 7% gain day but you probably likely just missed the 7% loss day on the day before too, so it's a wash. I don't know about being part of an overall lesson on market timing by just imagining those days in isolation.
Daily and weekly auto buys better than buying $10k worth of stock on the way down. You don’t know where and when the bottom is. avg over everything imo. If you want cash access there are lots of 5%+ APY high yield savings accounts still going. You can put your money in those while the rates are still good, just make sure the bank you use is legitimate. Or if you don’t need access you can do the CD route and get similar/slightly better APY
Where do you guys hold funds for your backdoor roth contribution? I've been holding mine in a HYSA but recently I've had the thought that it might be better to stop contributing to the HYSA and put all of my extra cash into brokerage and then sell enough to max my roth on Jan 1. I'm probably overthinking this one.
If you put it in a brokerage account and actively trade, when you sell you’ll get hit with the short term cap gains tax. I just set it aside in December for January rollover, but if you’re funding through monthly/weekly contributions throughout the year - keeping it in a HYSA and then transferring seems reasonable, you’ll pay tax on the interest you made, but should be negligible. Short term cap gains would likely hurt more from my napkin math.
My assumption was that using first in, first out the shares sold would be the oldest and therefore taxed as long-term.
You’re paying tax on the interest earned in a HYSA anyway so if you want to take the risk of investing it instead I don’t see a reason not to employ that strategy. Best case you’re just paying tax on a higher return than what a HYSA will offer you. If your aim is to ensure the funds are all there at the time you do the backdoor that’s different.
except when I am but I wasn't there, especially since that was the bottom and people were afraid to get in
I started going absolute haam on the market after December 2021 when I paid off my house (still no ragrats) and let my tell you the ole net worth is not upset at the last 3 years.