Author Topic: Roth IRA Maxed(Quick Vanguard Question)  (Read 958 times)

401Killer

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Roth IRA Maxed(Quick Vanguard Question)
« on: May 28, 2020, 06:21:53 AM »
I have my Roth IRA maxed out at Vanguard(401k Max as well) but I want to keep dumping money into the 3 fund portfolio in the same way. I just need to setup a Traditional IRA account and pick the same funds basically right? Or is that actually still part of the $6k/yr thing?

I'm not interested in individual stocks but the more I read it seems like this may be the limit? Short of maxing out the HSA? I would like to invest $6k/yr into Roth IRA and $6k/yr into the same funds or dump it all into VTSAX.

This is where the limit of my understanding is, how do I become one of those people who save 50%+ after these types of accounts are maxed?



« Last Edit: May 28, 2020, 06:33:26 AM by 401Killer »

terran

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Re: Roth IRA Maxed(Quick Vanguard Question)
« Reply #1 on: May 28, 2020, 06:30:56 AM »
Yes, the $6k limit is combined between Roth and traditional IRA. If you had at least $6k of earned income in 2019 you still have time to contribute to an IRA for 2019 since the tax filing deadline was extended due to COVID. If you have a spouse they can contribute to an IRA even if they don't work as long as you have enough earned income to support both contributions.

If you're enrolled in an HSA eligible high deductible health insurance plan then can contribute $3350 to a single plan or $7100 to a family plan to an HSA.

Here's the recommended places to put your money: https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

At this point your only option may be a taxable account, in which case this might be helpful: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement

401Killer

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Re: Roth IRA Maxed(Quick Vanguard Question)
« Reply #2 on: May 28, 2020, 07:14:46 AM »
Gotcha, thanks.

I guess the main thing that really confused me is that I remember people stating that if they came into X number of dollars (Like $100k) they would just dump it all into VTSAX and forget about it. Apparently that's not actually possible in lump sum.

It was a big moment to reduce paying down my house and investing it instead. Now that I'm maxed out on the investments I supposed I'll put what's left back into the house. I have a 15 year loan of $44k @ 5.25% and nobody will let me refinance as the amount it too low. ahh well. o_O
« Last Edit: May 28, 2020, 07:25:27 AM by 401Killer »

NotJen

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Re: Roth IRA Maxed(Quick Vanguard Question)
« Reply #3 on: May 28, 2020, 07:30:57 AM »
I guess the main thing that really confused me is that I remember people stating that if they came into X number of dollars (Like $100k) they would just dump it all into VTSAX and forget about it. Apparently that's not actually possible in lump sum.

It is possible in a taxable brokerage account, as terran mentioned.  No limits there.

terran

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Re: Roth IRA Maxed(Quick Vanguard Question)
« Reply #4 on: May 28, 2020, 07:55:02 AM »
I guess the main thing that really confused me is that I remember people stating that if they came into X number of dollars (Like $100k) they would just dump it all into VTSAX and forget about it. Apparently that's not actually possible in lump sum.

It is possible in a taxable brokerage account, as terran mentioned.  No limits there.

Right.

It's possible you're confusing Accounts (401(k), Roth IRA, traditional IRA, taxable/brokerage, etc) with investments (VTSAX, VTIAX, etc). One puts money in an account, and buys investments with the money in that account. So the account and the investment are separate decisions. While some accounts have annual contribution limits, others (taxable/brokerage) don't, so you can put as much money as you want in a taxable/brokerage account and you can invest that money in the same investments as other accounts (for the most part).

cchrissyy

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Re: Roth IRA Maxed(Quick Vanguard Question)
« Reply #5 on: May 28, 2020, 10:05:34 AM »
There is no limit how much money you can invest in VTSAX or other stocks or funds. The limit is just about how much fresh money can go in the IRA account.
Call Vanguard and ask them to open you another account. This one will be brokerage, not retirement. Of course you are free to save in it for however long you want, including for your retirement.

401Killer

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Re: Roth IRA Maxed(Quick Vanguard Question)
« Reply #6 on: May 28, 2020, 10:12:31 AM »
I guess the main thing that really confused me is that I remember people stating that if they came into X number of dollars (Like $100k) they would just dump it all into VTSAX and forget about it. Apparently that's not actually possible in lump sum.

It is possible in a taxable brokerage account, as terran mentioned.  No limits there.

Right.

It's possible you're confusing Accounts (401(k), Roth IRA, traditional IRA, taxable/brokerage, etc) with investments (VTSAX, VTIAX, etc). One puts money in an account, and buys investments with the money in that account. So the account and the investment are separate decisions. While some accounts have annual contribution limits, others (taxable/brokerage) don't, so you can put as much money as you want in a taxable/brokerage account and you can invest that money in the same investments as other accounts (for the most part).

Ok, that makes more sense. I think I finally found out how to do it on Vanguard. When creating a new investment account I always chose "Retirement" and not a general savings account. Now it has the option for an Individual account.

BTW during this I raised up my HSA contributions by 10x!

Thanks a ton for the assistance you guys. =D