Hey all. Around 60k liquid right now
27k in roth ira vanguard 2060 target date (3200 to max 2019)
Have a mortgage at 116k/4.25%
Student loans at 11k/4.1%
Income: 22/hr (45k annual, no 401/no healthcare currently unless they hire me salary in 4 months). Around 2800/month after taxes. Around 1200 a month to allocate after all living expenses. This job may change.
Excess income (working side jobs-500-800/month expected self employed llc)
I'm wondering what the best options as follows are:
1) Healthcare. I have to find a plan by next month. Looking into HSA accounts but it's like the wild west.
2)How to allocate current assets. Plan on keeping 25k in ally HYSA for emergency/business capital. That leaves 35k to allocate. I believe taxable accounts would be the best as I'm currently maxing my Roth yearly. Once again-those seem to be the wild west. Looking at just putting it all in VITSAX?
3) Keep a Roth or move to a traditional. I expect to make more in the future whether it be self-employed/under others employment.
Any advice? Really just looking for the smartest moves to make. I don't have hours every day to buy and sell funds but hate leaving money sitting around doing nothing.
Thanks
Rule of thumb is is max the tax advantaged space. I'm not really sure if the traditional or Roth is better in your situation. I think Roth because...
...you are in luck! Because you have a side gig and an LLC (LLC is not strictly necessary, but it helps) you can have a self-employed 401(k). And, you can contribute 100% of your side gig income up to $19,000. Which is probably more side gig income than you will have this year. AND because you are employing yourself you can also contribute 25% of your income as the employer side--up to $62,000 total! AND the employer contribution is tax deductible. I imagine your taxable income will be knocked down quite nicely. Which probably means the Roth is the best option. Plus the favorable tax withdrawals of the Roth might come in handy down the road.
So depending on the side gig, you should be able to jam quite a bit of that money into the SE 401(k). The part that you can't do in tax advantaged accounts this year, you can place in taxable accounts and shuffle it into the SE 401K in future years.