Author Topic: Structuring Plan for Investing  (Read 1413 times)

SpaceGhost

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Structuring Plan for Investing
« on: July 29, 2016, 06:35:03 PM »
Earlier this year I started reading about FI while closing out my second mortgage and student loans.  Now the only debt i have is my main mortgage and I feel great about working so agressively on those 2 loans over the past 18 months.

Twelve weeks ago I started funding my SEP for 2015 (im cathcing up to current) and have now gotten accustomed to putting back $1000 a week into my retirement accout.  Another $250 a week is put aside for general savings, as well as $400 a week for my tax payments.  The balance of this year I plan to continue the trend every week to finally catch up to being current with my contributions.

As I plan for 2017, I would like to continue the same trend but can't figure out the game plan.  If I maintain weekly contriubtions of $1000, I don't know where to put it all.  A good problem to have, but looking for some guidance in structuring a game plan for 2017.  I have added some details below to help.

I have my own company, make between $115,000 to $130,000 a year.  I have a SEP IRA, a Roth IRA, and just opened an i401K but can't fund both (SEP and i401K) in same calendar year, so may convert SEP IRA to tIRA.  That would allow $5500.  The i401K can be funded 18K plus 20% of my salary.  This will be $30,500 to contribute.  With more to contribute to the i401K in lieu of the SEP, that may help get my MAGI below the cap so I could possibly fund my Roth IRA as well.  That leaves about 10 weeks of contributions to go....???  Bonds?  My brokerage account?

Thanks in advance!

slugsworth

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Re: Structuring Plan for Investing
« Reply #1 on: July 29, 2016, 07:30:29 PM »
HSA for a few of them?

SpaceGhost

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Re: Structuring Plan for Investing
« Reply #2 on: July 30, 2016, 09:35:51 AM »
I'm not sure a HDHP with HSA is right for me.  My current health insurance has remained intact throughout the ACA implementation.  I was surprised I got to keep what I had and my monthly rates are lower than what I can pruchase regular health care for.  I pay around $170 a month for my coverage and have been fortunate to be really healthy, so it's not used that much.  If i understand correctly, switching to a HDHP and HSA would be much more out of pocket monthly.  I read the MF ultimate retirement account write-up about HSA's and don't disagree with the logic, just not sure it's the right fit for me.  If I'm not looking at it the right way, then i would be happy to hear others thoughts.

Choices

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Re: Structuring Plan for Investing
« Reply #3 on: July 30, 2016, 12:40:46 PM »
Your phrasing sounds like you're single, but if not you could contribute to your spous's retirement the same way and to 529s if you have kids.

It's controversial on this forum, but paying off your mortgage earlier gives a great feeling too.

Do you also have a good emergency fund? And do you foresee any large purchases or repairs in the next year or two?

SpaceGhost

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Re: Structuring Plan for Investing
« Reply #4 on: July 30, 2016, 10:22:32 PM »
yes single, no kids.  emergency fund is fine and growing $1000 a month.  eventually i will cap it.  i'm currently looking into refi on my mortgage to see if i can get the rate below 4.  while im not interersted in paying off my mortgage, i am interested in increasing my equity either by paying down or renovations.

arebelspy

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Re: Structuring Plan for Investing
« Reply #5 on: July 30, 2016, 10:28:26 PM »
After maxing all tax-advantaged, brokerage or mortgage, depending on your rate and investor profile. At the 4% or lower amount you're talking, I'd just start building the taxable account.
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