I'm trying to sort out my investment strategy and would like some feedback. These are the accounts we currently have:
- Fidelity: This is my wife's 401a, 53.8%
- Morgan Stanley: This is my SEP IRA, 23.4%
- Betterment: Safety net at 60% stocks 40% bonds, 10.5%
- Betterment: My Roth IRA at 100% stocks, 6.8%
- Betterment: Her Roth IRA at 100% stocks, 2.3%
- Capital One Investing: Mostly Apple, little bit of BRK-B, 3.2%
- Motif: Just opened, no money in here yet, 0%
*Percentages at the end of each line item above are the percentage of our total amount invested in that line item.
The only investment we've really been diligent about in the past is my wife's 401a. This is because she gets an 8% match on a 5.5% contribution so we've always taken advantage of that. I'm self employed so our income can swing wildly. We had a good year last year and I expect to have a similarly good year this year. So, I'm trying to use this time to get serious about debt reduction and also investing. We have no control over Fidelity's fees and we obviously don't want to lose the match so I don't think there is much to discuss there. I am concerned that Morgan Stanley charges me 1.5% annually to manage my account. This seems really really high to me. But, I like having a guy who answers the phone when I call and is willing to discuss things with me. I'm very interested in being involved in my investments but I don't know a lot.
One specific question I have; does it really make sense in the long run to contribute to a Roth? I have no idea if I will be in a higher tax bracket or not when I retire. Shouldn't I take the guaranteed more money working for me now that I get with a traditional IRA? Also, should I be maxing out my SEP IRA before I contribute to a Roth or traditional IRA?
Further info; I've undertaken the journey of becoming debt free in 5 years (63 months actually) but will still be investing 15% our gross income in retirement accounts. I'd like to use any remaining money to invest in non-qualified accounts but I'm not opposed to putting that money in retirement or adding to the debt snowball. So many options!
I'm not even sure I'm asking all the right questions. I'm really trying to learn and I'm open to any and all feedback. Please let me know what other info I can provide. Thanks!