I have considering putting money into a Roth IRA recently. I was looking at Vanguard’s VTSMX Total Stock Market Index. Basically I want to invest the $3,000 initially, and then about $500 per month. But now, our company’s 401(k) is giving us a Roth option. I am 48 and contribute about $10,000 per year to my current 401(k). I have changed my 401k so that I am now paying 60% Roth and 40% traditional 401k. Does this approach make sense? How does the 401(k) Roth work? Does your company offer retirement reviews?
We generally recommend that our clients take advantage of maximizing their contribution to a Roth IRA when they are eligible. It’s great that you are currently splitting your contributions between the Roth and Traditional 401(k). In your position, it makes sense for you to continue to hedge the “tax bet” since you are 48 and […]
What is a 26f program? Are funds that are stated to be 26f, such as Vanguard Wellington, good investments in an IRA or are they better in a taxable account?
We weren’t aware of a “26f” program, so we did some research online and found no evidence that there is any official 26f program. It appears to be some type of scam to get people to purchase an annual subscription to their “financial advice” website, where they will then give you the details of the […]
Should I boost up my current 401(k) contributions to Fidelity or go with the Vanguard? If I go with Vanguard is VTSMX a good choice or would you suggest another fund? How does the 401k Roth work? Does your company offer retirement reviews?
We often recommend that our clients consider taking advantage of maximizing their contribution to a Roth IRA when they are eligible. The way you are currently splitting your contributions between the Roth and Traditional 401(k) makes sense in your situation. It’s a great idea to continue to hedge the “tax bet” since you are 48 […]
I’m not eligible for my company’s 401(k) yet, so I’m contributing to my own IRA. I’m married and we file jointly. We are both over age 50. Does the $6,500 limit apply to both of us together or just me?
The IRA contribution limit applies to the individual, therefore both you and your wife are eligible to contribute $6,500 each to your own IRAs.
