Author Topic: Invest in taxable on Monday or in my Roth on January 2nd?  (Read 1762 times)

Physicsteacher

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Invest in taxable on Monday or in my Roth on January 2nd?
« on: December 16, 2016, 07:25:32 PM »
I just got my last paycheck for the year and need to invest $1k. Should I go ahead and buy more VTSMX in our taxable account now or wait and put it in my Roth in January? Either way, I expect to max out my Roth by mid-2017.
« Last Edit: December 16, 2016, 07:47:04 PM by Physicsteacher »

Quidnon?

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #1 on: December 16, 2016, 07:32:59 PM »
If it were me, I'd wait.  The markets look downright effervescent right now.  I'm actively converting into cash, and plan on waiting until this 'Trump bump' returns to some kind of reason.

VoteCthulu

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #2 on: December 18, 2016, 12:36:48 AM »
I don't think this is a bad time to invest like the above comment, but I would also wait. It's only two weeks, and the Roth is more important to get invested asap for me.

Lews Therin

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #3 on: December 18, 2016, 01:10:17 AM »
I'd wait for the ROTH, the amount of time you will have to wait wont cost you more than 2$ in lost interest, unless you are looking at something that has a dividend that pays out end December for the year.

Either way, 1000$ is such a low amount, Both are fine. You are wasting more money thinking about it then the actual effect :D !

talltexan

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #4 on: December 19, 2016, 01:02:38 PM »
without knowing how old you are, it's tough to give a good answer. The Roth IRA is trading access to the gains generated by the money until you're 59.5 for having to pay taxes on those gains. That's very often the right trade, with having to wait two extra weeks not making a big difference.

Nothlit

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #5 on: December 19, 2016, 01:53:11 PM »
When do you normally invest new money? Right after a paycheck? On the first of the month? I would say you should do whatever you normally do, and don't pay attention to what the market is doing right now. If you normally invest on the first of the month, then I'd say wait until Jan 1 and direct your money into your IRA. Continue directing into your IRA until you have maxed it out for the year, then redirect subsequent money to your taxable account. On the other hand, if you normally invest ASAP following a paycheck, then I'd stick with that pattern as well. Invest in your taxable account now, and then start investing in your IRA following your first January paycheck.

If you don't have a routine habit, then maybe now is a good time to establish one.
« Last Edit: December 19, 2016, 01:56:35 PM by Nothlit »

gimp

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #6 on: December 19, 2016, 02:12:49 PM »
It's so close to the end of the year that I'd just wait till it rolls over to January.

That's what I'm doing. $5500 sitting, ready to go.

Retire-Canada

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Re: Invest in taxable on Monday or in my Roth on January 2nd?
« Reply #7 on: December 19, 2016, 02:28:52 PM »
Honestly it doesn't matter either way.