Hi All - I have been working to improve my focus on investing and wanted to get some input on how I have things invested/allocated. Now, let me preface my post by acknowledging I have too much in cash. There are reasons for this that are not worth getting into here. Currently I am in the process of DCA from my high yield savings account into my individual account ETF's. So, be patient with me on that. . With that said, here it goes...
Other Comments:
One thing I want to specifically ask the group is around back-door Roth contributions. Currently I have a Traditional IRA from a previous company roll-over. I like this account because I have the VTI, VEU, BND investment options...and anything else I may want to invest in...vs and 401K where the investment options are limited to what the plan provides. My current 401k plan offers quite a few investment options...but all except 2 have fairly high management fees. So, these two low management fee funds are what I stick to. Anyway, my question is, do you think it's worth rolling everything from my Traditional IRA into my current employers 401K so that I can easily do a back-door Roth contribution every year? I'm really struggling with this one and am not sure if it is worth losing the investment options I have in my current Traditional IRA account.
Thanks for your input and look forward to your comments!
High Yield Savings (1% interest): $145K |
Other Various Savings (0.04% interest): 32K |
Individual Investment Account: $306K VTI (30%), VEU (20%), FUSVX (40%), F (10%) |
Traditional IRA $134K in VTI (50%), VEU (30%), BND (20%) |
Roth IRA: $34K in VTI (50%), VEU (30%), BND (20%) |
401K: $170K in VINIX |
TOTAL ASSETS: $821K |
Other Comments:
- I have no debt
- I do not own a home. I rent.
- I own a car.
- I max out my 401K, and my employer matches my contributions at 7% (4% retirement contribution & 3% employer match).
- I cannot contribute anything to my Roth now because my compensation is above the allowed contribution limit. The current money showing in my Roth is from contributions many years ago.
- I will eventually get out of F and FUSVX in my individual account and DCA that money into the index funds. There are some of my legacy investments that still linger. They are making money now, so there is no sense getting out of them at the moment until I can put those funds to work (after I DCA my high yield savings account money).
One thing I want to specifically ask the group is around back-door Roth contributions. Currently I have a Traditional IRA from a previous company roll-over. I like this account because I have the VTI, VEU, BND investment options...and anything else I may want to invest in...vs and 401K where the investment options are limited to what the plan provides. My current 401k plan offers quite a few investment options...but all except 2 have fairly high management fees. So, these two low management fee funds are what I stick to. Anyway, my question is, do you think it's worth rolling everything from my Traditional IRA into my current employers 401K so that I can easily do a back-door Roth contribution every year? I'm really struggling with this one and am not sure if it is worth losing the investment options I have in my current Traditional IRA account.
Thanks for your input and look forward to your comments!
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