Author Topic: After max IRA and 401k, what next?  (Read 3336 times)

OneCoolCat

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After max IRA and 401k, what next?
« on: February 03, 2015, 09:16:34 PM »
For someone who wants to maximize their net worth in the shortest amount of time?  Investment properties or taxable accounts? 

MDM

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Re: After max IRA and 401k, what next?
« Reply #1 on: February 03, 2015, 10:14:00 PM »
Pick the next winning lottery ticket.

Other than that, for the choices you listed, it really depends on your flair for managing rentals (assuming that's what you mean by "investment properties") and the rental market available to you.

Pooplips

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Re: After max IRA and 401k, what next?
« Reply #2 on: February 04, 2015, 09:45:57 AM »
Roth then taxable.

MDM

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Re: After max IRA and 401k, what next?
« Reply #3 on: February 04, 2015, 09:54:10 AM »
Roth then taxable.
Can't do Roth after max [traditional] IRA.

OneCoolCat

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Re: After max IRA and 401k, what next?
« Reply #4 on: February 04, 2015, 10:25:34 AM »
I'm thinking throwing everything into taxable accounts (less volatile type investments) and wait for the next housing crash and buy property then.  Thoughts?

skunkfunk

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ImCheap

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Re: After max IRA and 401k, what next?
« Reply #6 on: February 04, 2015, 10:47:49 AM »
Roth then taxable.

This is my view:

1. Contribute enough to the work plan to get the match.
2a. If your work plan is decent keep filling it up.
2b. If the work plan stinks fill up your rIRA or tIRA depending on you tax issues.
3a. If your work plan stinks and your IRA is full go back and fill up the work plan.
3b. If your work plan is decent and its full fill up a rIRA or tIRA depending on you tax issues.
4. I think some people will vary here but Ibonds or Taxable. Pros and cons to either one if these, I happen to like some ibonds myself.

If your work plan is a real, real dog I may choose ibonds and or taxable after any free money in the work plan, I'm thinking anything getting over 1.5% ER's should make a person look at all the options with eyes wide open.


DrF

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Re: After max IRA and 401k, what next?
« Reply #7 on: February 04, 2015, 10:49:11 AM »
I'm thinking throwing everything into taxable accounts (less volatile type investments) and wait for the next housing crash and buy property then.  Thoughts?

The obvious response to this is that we may never see a housing crash again. Realistically, in your area you may never see houses again cheaper than they are currently.

Look at the MadFientist article, if you can take advantage of the after tax 401k contributions then do that. If not, then put it into a taxable investment account while you are waiting for this "housing crash".

ImCheap

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Re: After max IRA and 401k, what next?
« Reply #8 on: February 04, 2015, 10:53:22 AM »
I'm thinking throwing everything into taxable accounts (less volatile type investments) and wait for the next housing crash and buy property then.  Thoughts?

What is your definition of the next housing crash and what your entry point is going be?

How long are you going to wait to get in?

In other words if housing does not crash for 20 years are you ok hanging on to less volatile investments over that time frame? I assuming less volatile = does not keep up with inflation or just keeps up with inflation. 


OneCoolCat

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Re: After max IRA and 401k, what next?
« Reply #9 on: February 04, 2015, 06:31:53 PM »
Unless the prices surge to 2008 levels, I will just use my taxable account contributions as a downpayment in a few years (when I get enough to avoid PMI).

I expect home prices to continue their pretty fast appreciation right now, but I don't have to resources to buy an investment house now while prices are still pretty low compared to 2008.