Author Topic: Front Load IRA's/HSA in 2017?  (Read 1868 times)

RockYourSocksOff

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Front Load IRA's/HSA in 2017?
« on: January 04, 2017, 07:12:18 AM »
I'm trying to determine whether to front load my and my wife's IRA's and our HSA in 2017 or to keep the money in savings and make monthly contributions over the year.  I know this question is basically an attempt to predict the market but I'd love to get some feedback.  Both the IRA's and HSA are in a mixture of low cost index funds.  Both of the IRA's will be funded as backdoor Roths.  Thanks in advance!

RockYourSocksOff

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Re: Front Load IRA's/HSA in 2017?
« Reply #1 on: January 06, 2017, 03:32:57 PM »
Any thoughts?  Someone else must be trying to make a similar decision.

jdhansen

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Re: Front Load IRA's/HSA in 2017?
« Reply #2 on: January 06, 2017, 03:40:22 PM »
So I believe that Time in the market is more important than timing the market, so I would put it all in now, set it and walk away.


Derrian

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Re: Front Load IRA's/HSA in 2017?
« Reply #4 on: January 06, 2017, 04:23:36 PM »
The data has shown that over the long term front loading leads to higher returns than DCAing into the market. Some individual years this does not work out but generally speaking it does. Predicting market returns is a foolish exercise. For the last four years my own highly educated family members have said a crash is imminent. When I started investing SP 500 was at 1600. While it all may come crumbling down at any moment, I'm glad I invested as planned and capitalized on the gains. My advice, make an IPS and stick to it, whether it is DCA every month or invest a lump sum on a particular date.

doneby35

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Re: Front Load IRA's/HSA in 2017?
« Reply #5 on: January 06, 2017, 05:15:22 PM »
As per Nothlit's reply, I pretty much had the same question earlier today in this post:
http://forum.mrmoneymustache.com/ask-a-mustachian/max-out-tira-contributions-with-single-purchase

Good answers in there.

RockYourSocksOff

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Re: Front Load IRA's/HSA in 2017?
« Reply #6 on: January 09, 2017, 06:34:35 AM »
Thanks for the feedback all.  Just made the transfers.

financiallypossible

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Re: Front Load IRA's/HSA in 2017?
« Reply #7 on: January 09, 2017, 09:55:29 AM »
I'm trying to determine whether to front load my and my wife's IRA's and our HSA in 2017 or to keep the money in savings and make monthly contributions over the year.  I know this question is basically an attempt to predict the market but I'd love to get some feedback.  Both the IRA's and HSA are in a mixture of low cost index funds.  Both of the IRA's will be funded as backdoor Roths.  Thanks in advance!

Interesting that your wife's job has the option to front load HSA. My employer forces the HSA contribution to be spread equally throughout the year.

Quote from: jdhansen
So I believe that Time in the market is more important than timing the market, so I would put it all in now, set it and walk away.

I agree with this general philosophy, but would recommend being cautious depending upon what is being purchased in the IRAs. Always be price sensitive. If the asset chosen is at a high price and you feel it has more downside risk than upside potential, then I'd recommend either buying cheaper assets to use for front loading or avoid the front loading and spread it out over the course of the year.

RockYourSocksOff

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Re: Front Load IRA's/HSA in 2017?
« Reply #8 on: January 09, 2017, 10:33:27 AM »

Interesting that your wife's job has the option to front load HSA. My employer forces the HSA contribution to be spread equally throughout the year.


Our HSA is actually for my small business.  I give my employees an amount every month on their paychecks but they are free to make their own contributions up to the limit that applies to them throughout the year.  I simply contribute to my HSA directly with after tax money and take the tax deduction on my return at the end of the year.  Sadly there is no way (that I know of) for me to make my own HSA contribution a business expense.