Hi everyone,
Bottom line up front: Do I convert non-tax advantaged mutual funds into our RIRAs all at once and miss out on dollar cost averaging, or spread it out but pay more in processing fees?
I’m still in my “clean up from when I had no clue what I was doing while investing” stage. The short of it is I have about 30k in a “regular” non-tax advantaged account. I am not yet maxing out my RIRA/TSP (401k) space yet, so I figure it would make sense to convert that 30k into a tax advantaged account up to the max per year.
I think I should fill up the RIRAs all at once, at the beginning of the year. I figure the advantages of having earnings grow untaxed would mask any DCA, particularly since the money is already technically in the market. It will also minimize transaction costs ($20 per transaction, and can liquidate up to an entire fund in one transaction, with 8 funds in the account).
With kids, I’m at a super low effective tax rate right now so a TIRA just doesn’t make sense.
Just trying to get a quick sanity check here- thanks!