Hi there,
I've read a lot and gotten a lot of advice over the years. I'm finally to the point where I can start maxing things out and investing a lot more. I recently paid off my last debt and have a FFEF. I have some questions. I currently make about $95,000/year, however, this is variable. I make a base salary plus commissions. So I'm capable of making more and I also sometimes make less. I'm expecting to make more this year than I have in the past, however, because it will vary over the years, my tax bracket will also currently vary. I have some options.
Currently I just opened a Roth IRA that I started contributing to and plan to fully fund
I participate in my company's ESPP and plan to max this out in the next round
My company does not match my 401K (they do the ESPP instead). I currently invest 5% here but can increase this. I have the option of contributing to a regular 401K or a Roth 401K. I'm not sure which is the right one for me based off of my variable income. I was thinking about doing 50/50.
I also have a regular IRA from a previous employer 401K that I rolled over. I have not been contributing to this but could, it has more options than my 401K and potential to do better long term because of that.
I also have some regular Vanguard funds that I've been putting some money in for when I need it in the future. Things like paying cash for a car or putting a new roof on my house.
I know the basic order for investments and am kind of following it. However, I don't always have the money to max everything out. Should I be focusing on any specific items above? Or would it be better to spread my money out and just put what I can where I can in order to diversify? I'm also not sure of the Roth 401K vs. regular 401K and same with the Roth IRA and Regular IRA. Should I be targeting any of those specifically or diversifying again?
Thanks!