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Appraise my current situation?

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  • Appraise my current situation?

    Hi all,

     

    I currently started my first attending job and realized it's about time I played a more active investing role. Throughout residency I maxed my Roth IRA, but now with more disposable income, I'm starting to explore other options.

    For some background, I'm ~30 years old and have been blessed to have no outstanding student loans at this time. My current job has a variety of retirement account options with a 10% match for a 401(a). I also have access to a couple supplemental retirement accounts and I plan to backdoor to my Roth yearly. As such, I'm looking at putting away ~100k yearly in retirement funds. I'm also currently single and have low living expenses, so if my calculations hold true I should have 100k in disposable income (plus some other liquid money) that I'd like to put towards something. With the above, what sort of investment options would you guys recommend?

    Should I open a Vanguard account and just continue to diversify my portfolio? Or would you look at more passive investment options such as turnkey rentals or something in that ilk? Would love to hear your thoughts.

     

    Thanks!

  • #2
    Taxable account.

    Comment


    • #3




      Hi all,

       

      I currently started my first attending job and realized it’s about time I played a more active investing role. Throughout residency I maxed my Roth IRA, but now with more disposable income, I’m starting to explore other options.

      For some background, I’m ~30 years old and have been blessed to have no outstanding student loans at this time. My current job has a variety of retirement account options with a 10% match for a 401(a). I also have access to a couple supplemental retirement accounts and I plan to backdoor to my Roth yearly. As such, I’m looking at putting away ~100k yearly in retirement funds. I’m also currently single and have low living expenses, so if my calculations hold true I should have 100k in disposable income (plus some other liquid money) that I’d like to put towards something. With the above, what sort of investment options would you guys recommend?

      Should I open a Vanguard account and just continue to diversify my portfolio? Or would you look at more passive investment options such as turnkey rentals or something in that ilk? Would love to hear your thoughts.

       

      Thanks!
      Click to expand...


      Congrats on your success and good fortune (no student loans is amazing).  Anyway, in my opinion, alternative investments in real estate or other avenues should be reserved for those who already have sizable taxable accounts in addition to the usual tax advantaged accounts.  If I were you, I'd spend a few years continuing to build up your tax advantaged accounts and put all "extra" money into a taxable account.  If you're successful at staying disciplined with that, then start saving for an alternative investment such as a turnkey rental if that's what you're interested in.  IMHO your alternative investments should be a relatively small portion of your portfolio, especially early on.

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      • #4
        I agree I would just pad the taxable account early on.  It will not take many years for a 100K alternative investment to only be 10% of your total.

         

        Some people are really into RE investing.  Are you one of those or just listing it as an option?

        Welcome to the forum and Keep up the good work!

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        • #5
          you're already doing great. Other things you should look into before a taxable account or RE investing:

          1) Do you have a 401k/403b? I assume so. You should put $19k in there this year, whether your employer matches or not, and do it pre-tax

          2) Do you have a 457 plan? If so, do some research on this site to see if you should use it or not. Probably if you have it you'll want to use it. Put another $19k there, pre-tax.

          3) Go back to your 401k/403b plan and find out if it allows for you to deposit after-tax money and also allows for in-service withdrawals or rollovers to a Roth 401k or Roth IRA. Research on here about the mega backdoor Roth.

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          • #6
            Thanks for all the replies.

             

            My employer has a pre-tax 401(a), a pre-tax 403b and a pre-tax 457. It is a state university so I plan on contributing the max to all three plans. I don't think there's any way to do a mega backdoor Roth though.

             

            The RE thing was just something that had come up in my research, but I'm not married to it for any specific reason. Honestly, my biggest concern was that all these retirement invests are about saving money up for 30 years from now. I am young though and have a reasonable schedule, so I wanted to look into investments that could help fund more immediate (5-10 year) expenses. It does appear that a taxable account is the safest option, however.

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