So I have now been on the MMM forums for a few months now, and am starting to get a much better picture of my financials and my goals for the future. I've been paying down SL's, increasing my 401k, and living very frugally, so a good start. Today I went back and read my first post, a case study I posted, to see what my progress had been since my first foray into MMM, and noticed some information that had gone right over my head when I was first starting.
Many people on my first post had advised taking the ~$4.5K I have invested in various stocks on TDAmeritrade, and moving that over to an IRA. I am interested in doing so, but have a few questions on how to go about doing this. I have played around with a few calculators, and it seems like a traditional IRA is the way to go for me vs the ROTH, but can't quite grasp the nuances of the tax advantages, just know that the calculators indicate that for me, the trad. IRA would earn about $7K more if I retire by 35.
Also, how would I go about actually moving this money from TDA to an IRA. Would I need to cash out the stocks, and then just invest that money in an IRA, or is there a way to roll it over somehow?
The other question I have is if it truly does make sense for me to move this money to an IRA. I have stock in Apple, Ford, Alibaba, Seadrill, and a few biotech companies, and while I know that it is best to invest heavily in tax advantaged accounts, I think I am having a hard time letting go of the idea that they will "take off" and it will be a worthwhile investment. It is such a horrible thing to keep this $4.5K invested in these stocks, and just put all future money towards other tax advantaged accounts?
(Other info that may be relevant: am contributing 12% to my 401K, with an intention of maxing it out next year after paying of $21K in student loans this year)
Totally new to investing, so appreciate any advice or facepunches!