Author Topic: Where should all my money go?  (Read 817 times)

mydogismyheart

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Where should all my money go?
« on: March 26, 2018, 09:48:47 PM »
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!

mydogismyheart

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Re: Where should all my money go?
« Reply #1 on: March 26, 2018, 09:53:12 PM »
Also, I apologize, I didn't mean to post 2 topics on this but my 1st one disappeared and then reappeared. Sorry about that!