Author Topic: End of the year questions/review  (Read 1589 times)

Sebastian

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End of the year questions/review
« on: December 19, 2013, 07:39:09 AM »
Hello All!

So I only started investing back in June when I first stumbled upon ERE and MMM. Now, I have a little stache building up in a 401K and Roth IRA account :) I had a couple questions to wrap up the year for my investments and I want to make sure I have the right idea.

1. We are allowed to put $5500 a year in our Roth IRA accounts right? Can I still dump money into my 2013 year past December? For example, I have heard/was told that you can contribute to your IRA account until the cut off for taxes of that year. So some time in April.

2. Do I need to reallocate any of my investments yet? Any time I asked this question people said I didn't have enough money in my accounts yet for it to make a difference. I still might have enough but I just want to double check..

401K - Charles Schwab S&P 500: Currently have $7,200 in this account.

Roth IRA - Vanguard TargetFund 2060: Currently have $4,000


By the way, some side info about me to give you a better picture.

I'm 26 years old and live in Madison, WI. I plan on using my retirement accounts when I'm a bit older. I will be financially independent in my 30s through real estate investing. So I'm kind of planning my 401K and Roth to be icing on the cake when I get older. So I won't be needing this money anytime soon.

Let me know if you need any more info on me to properly assess.

Thanks!

matchewed

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Re: End of the year questions/review
« Reply #1 on: December 19, 2013, 08:15:36 AM »
Hello All!

So I only started investing back in June when I first stumbled upon ERE and MMM. Now, I have a little stache building up in a 401K and Roth IRA account :) I had a couple questions to wrap up the year for my investments and I want to make sure I have the right idea.

1. We are allowed to put $5500 a year in our Roth IRA accounts right? Can I still dump money into my 2013 year past December? For example, I have heard/was told that you can contribute to your IRA account until the cut off for taxes of that year. So some time in April.

That is correct, up to April 15th - Source

2. Do I need to reallocate any of my investments yet? Any time I asked this question people said I didn't have enough money in my accounts yet for it to make a difference. I still might have enough but I just want to double check..

401K - Charles Schwab S&P 500: Currently have $7,200 in this account.

Roth IRA - Vanguard TargetFund 2060: Currently have $4,000


By the way, some side info about me to give you a better picture.

I'm 26 years old and live in Madison, WI. I plan on using my retirement accounts when I'm a bit older. I will be financially independent in my 30s through real estate investing. So I'm kind of planning my 401K and Roth to be icing on the cake when I get older. So I won't be needing this money anytime soon.

Let me know if you need any more info on me to properly assess.

Thanks!

I'd refer to your investment policy statement and asset allocation, it should outline rebalancing frequency and the like.