Author Topic: Investment Order Question  (Read 763 times)

diesel

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Investment Order Question
« on: February 10, 2021, 02:50:03 PM »
Hi All.  I come seeking advice.  First a little background.

Age: 31
Status: Engaged
Home: Rental
Salary: ~105k
Debt: 0 (as of 12/2020..yay)
HSA: max contr.
401k: 124k
Roth IRA: 8500

My question is regarding steps 4 and 5 in the investment order (401k and IRA).
Let's say for round numbers I have 20k to invest.  I am trying to decide what would be best.

Scenario 1: Max out 401k (invest extra 500 in Roth)
Scenario 2: Max out Roth IRA and invest the remaining 14k in 401k.

Both accounts are through vanguard.  The biggest difference is in the 401k I don't have access to VTSAX but I have created about the same diversification through the funds that are there. (Ratio of large cap, mid cap, small cap, international)

The reason I only mentioned Roth 401k is due to the fact that as far as I know my salary is too high to deduct traditional.

Has anyone ever been in a similar scenario or have advice?  Thanks in advance!

**Disclaimer.  I know a better option would be just to max out both.  I'm working on that but in the meantime I'm looking for my best immediate course of action.**

secondcor521

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Re: Investment Order Question
« Reply #1 on: February 10, 2021, 02:56:12 PM »

diesel

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Re: Investment Order Question
« Reply #2 on: February 10, 2021, 03:00:39 PM »
Read the answer to a similar question posted here:

https://forum.mrmoneymustache.com/investor-alley/investment-order-question-120672/msg2787263/#msg2787263

:)

I realized it may fit better here and wanted to move it but I wasn't sure how!