Author Topic: VTSAX or Roth IRA?  (Read 2254 times)

DrMoney

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VTSAX or Roth IRA?
« on: January 26, 2017, 02:33:36 PM »
Hi, Everyone!
My husband and I recently cashed in a whole life policy (H's grandma bought it for him when he was a baby), and now we've got 10,000 to invest properly. We could use the money to max out our Roth IRAs, OR we could (finally) be able to buy VTSAX admiral shares. Which do you think is the better option? We are 35/33, if age matters in this.

neo von retorch

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Re: VTSAX or Roth IRA?
« Reply #1 on: January 26, 2017, 02:36:38 PM »
What matters is that you go in the best order of tax advantages and overall return on investment.

If you're in the 15% marginal tax bracket (or are outside the allowable MAGI to take advantage of a Traditional IRA) then taking advantage of your Roth IRA is a good idea. (Once the deadline passes, there's no going back.)

You can always buy VTSMX inside those Roth IRAs, and when you hit 10k in each, they'll be upgraded to admiral shares.

DrMoney

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Re: VTSAX or Roth IRA?
« Reply #2 on: January 26, 2017, 03:26:12 PM »
Thanks for the advice! I'm new to this. I was invested in the vanguard target funds, but after doing a little research, I was able to call and transfer to the VTSAX within the Roth.

 

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