Author Topic: Starting off early for the savings 2014  (Read 2078 times)

scarab007

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Starting off early for the savings 2014
« on: January 06, 2014, 02:33:40 PM »
Starting off right for savings for 2014.  First savings transfer to brokerage account, 10K.  Anyone else hit the savings button already?

Anti-ComplainyPants

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Re: Starting off early for the savings 2014
« Reply #1 on: January 06, 2014, 03:36:24 PM »
Sure did, opened up my first Roth IRA by throwing the opening $3k to Vanguard. Props to us!

But without enough income to max out my Roth, I admit I'm questioning how much to delegate to it and how much to put in a taxable account I could actually access penalty-free if this whole FI thing actually works out...

But most importantly, we're saving, which means we're winning!

Sunflower

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Re: Starting off early for the savings 2014
« Reply #2 on: January 06, 2014, 06:31:53 PM »
You can access all contributions from your Roth penalty free. So if you put in $3000 you can always take out $3000 without a penalty.

Cecil

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Re: Starting off early for the savings 2014
« Reply #3 on: January 06, 2014, 10:09:14 PM »
Yup, hit the transfer button for $11k to my wife and my TFSAs on Jan 1st.

400 shares of VUN made for a very nice late Christmas present for myself.

scarab007

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Re: Starting off early for the savings 2014
« Reply #4 on: January 06, 2014, 10:45:42 PM »
Yup, hit the transfer button for $11k to my wife and my TFSAs on Jan 1st.

400 shares of VUN made for a very nice late Christmas present for myself.

Nice late present indeed.  We love Jan around here as well and get a little late present from my wife company.  She has a crazy 401k that has employee contribution of 10% of her income and another 15% on the SSI portion she pays, so makes for a good Jan in addition to our regular savings.

dragoncar

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Re: Starting off early for the savings 2014
« Reply #5 on: January 06, 2014, 11:11:18 PM »
Three paychecks for me in January!  They will fully fund my HSA and 401k.  I also opened a new IRA to do a back-door Roth conversion with extra funds in my taxable account.

scarab007

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Re: Starting off early for the savings 2014
« Reply #6 on: January 06, 2014, 11:27:25 PM »
Three paychecks for me in January!  They will fully fund my HSA and 401k.  I also opened a new IRA to do a back-door Roth conversion with extra funds in my taxable account.

Nice!  When you say you fully fund your 401k in Jan, you mean just that? You fully fund the yearly max?  How long have you been doing it that way? Do you find that it would be better to have the money go each month and average your way in on investments?  Seems you could get in a pinch on a given year if the market was way up and saw a correction. Curious.

dragoncar

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Re: Starting off early for the savings 2014
« Reply #7 on: January 07, 2014, 11:29:52 AM »
Three paychecks for me in January!  They will fully fund my HSA and 401k.  I also opened a new IRA to do a back-door Roth conversion with extra funds in my taxable account.

Nice!  When you say you fully fund your 401k in Jan, you mean just that? You fully fund the yearly max?  How long have you been doing it that way? Do you find that it would be better to have the money go each month and average your way in on investments?  Seems you could get in a pinch on a given year if the market was way up and saw a correction. Curious.

Yes, I've been funding the max ASAP for a few years.  It wasn't always as soon as January, though :-) 

If I spread out the contributions over 12 months, then I would have more cash on hand each month.  That extra cash would just go into a taxable account (in other words, I'm not investing more money, just deciding how to allocate between taxable and tax-deferred).  So all things being equal, I'd rather put it in tax-deferred sooner.