The mega backdoor Roth is one of the most powerful tax maneuvers available to someone whose 401(k) plan allows after-tax contributions and in-service withdrawals. The basic idea is straightforward: you contribute after-tax dollars to your 401(k), then move that money into a Roth IRA, where it grows tax-free forever. No income limits. No conversion drama.
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This post will take a closer look at our investment portfolio. The purpose is not to influence your decision on investment options or to suggest you should follow our approach. The intention is to share a strategy that we’re comfortable with and works for us. …
The idea of writing about this subject has been on my mind for some time; however, I’ve found myself procrastinating instead of sitting down my ass in front of my computer and getting it done.
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Betterment is a great option for those looking to start investing in the stock market. They make investing easier, affordable, and completely hands-off. They create portfolios tailored to your risk tolerance investing in passively managed Index Funds to keep your costs as low as possible.
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A lot has been said about a Health Savings Account (HSA). It is by far the best tax-advantage vehicle created by mankind that allows eligible individuals to divert a portion of their income to an account from which they can reimburse eligible expenses tax-free and efficiently save for present or future health care expenses. If you have not yet taken advantage of an HSA, I highly encourage you to think about it but more importantly, to do your due diligence to evaluate if it would be beneficial for your personal situation. …
In the personal finance community, there’s a lot of back and forth between the advantages and disadvantages of Traditional and Roth IRAs. Short and long-term tax implications are normally highlighted as the main differences and are the ones that carry the heavyweight in moving the needle in either direction. …
One strategic approach to investing is to buy a particular mix of investments that you believe will provide the return you’re seeking at a level of risk you’re willing to take. This is what we refer to as asset allocation and is nothing more than bringing the concept of diversification into an investment strategy. …
So the 4th of July celebration has come to an end but now that we are back in Colorado I thought I’d take a break and share the story of our recent trip to The Texas Hill Country, and how we saved and invested during the holidays.
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