Author Topic: Best Investment Options?  (Read 2583 times)

OneDollarAtATime

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Best Investment Options?
« on: March 29, 2016, 08:15:14 PM »
I figure someone on the thread will know the answer to this question better than I do.  I suspect there's a 3rd option that's not being considered?

It's from my brother -- he's a firefighter and his soon-to-be wife is an ER Doc.


Should I look into a Roth 457 vs deferred comp?  I think the max is still 18 for each this year. I usually max deferred comp by end October and put the rest into my fidelity Roth but looking ahead filing jointly I don't know if that's going to remain an option

PhysicianOnFIRE

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Re: Best Investment Options?
« Reply #1 on: March 29, 2016, 08:34:22 PM »
Another Doc here.  The question is confusing.  A 457(b) is a deferred compensation plan.

Generally, putting tax deferred money into the 457 is preferable at or above the 28% federal income tax bracket.  If in the 25% bracket or below, a Roth 457 contribution is probably the better option.

The Fidelity Roth may not be an option if their combined income in 2016 exceeds the limits for contribution (~180,000).

Hope that helps.

OneDollarAtATime

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Re: Best Investment Options?
« Reply #2 on: March 29, 2016, 10:04:17 PM »
I think he's trying to figure out his investment options when they do tie the knot, since they'll be over 180k.

EnjoyIt

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Re: Best Investment Options?
« Reply #3 on: March 29, 2016, 10:57:17 PM »
I figure someone on the thread will know the answer to this question better than I do.  I suspect there's a 3rd option that's not being considered?

It's from my brother -- he's a firefighter and his soon-to-be wife is an ER Doc.


Should I look into a Roth 457 vs deferred comp?  I think the max is still 18 for each this year. I usually max deferred comp by end October and put the rest into my fidelity Roth but looking ahead filing jointly I don't know if that's going to remain an option

If able, maximize all deferred accounts to save on taxes. 
then do a backdoor Roth IRA contribution

Send your brother over to:
whitecoatinvestor.com
It is a finance blog written by an ER doc for other docs and other high income professionals.  Everything that you need will be found there.

OneDollarAtATime

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Re: Best Investment Options?
« Reply #4 on: March 31, 2016, 07:40:08 AM »

[/quote]
Send your brother over to:
whitecoatinvestor.com
It is a finance blog written by an ER doc for other docs and other high income professionals.  Everything that you need will be found there.
[/quote]

Will do -- just to be clear he's a firefighter, she's the ER doc.  I think a bunch of them were sitting around and one guy said "you outta check this 457 thing out, it's the way to go" and they kind of took it as gospel and ran with it.  Meanwhile, my brother slowed down long enough to ask if it was the right move.

The irony of the 'white coat investor' site -- my other brother (a doctor) gave me that book to read a few years back.  I still haven't gotten around to reading past the early pages of the book yet.

HipGnosis

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Re: Best Investment Options?
« Reply #5 on: March 31, 2016, 08:57:07 AM »

The irony of the 'white coat investor' site -- my other brother (a doctor) gave me that book to read a few years back.  I still haven't gotten around to reading past the early pages of the book yet.
Then give the book to your brother.

EnjoyIt

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Re: Best Investment Options?
« Reply #6 on: March 31, 2016, 09:20:40 AM »

The irony of the 'white coat investor' site -- my other brother (a doctor) gave me that book to read a few years back.  I still haven't gotten around to reading past the early pages of the book yet.
Then give the book to your brother.

That book is pure gold for any high income earner.