Wife and I max out Roth 401ks
HSA maxed
Paying down 30 year mortgage in 15 or less
529s being funded
No car payments

Have some in 5% Capital One CD
The rest just sitting in Capital One savings
Don't qualify for Roth IRA (don't know if that would be a good idea anyway since we already do Roth 401k)
Don't want to pay a financial advisor but don't want to screw up either

I'm in pretty much the same boat and decided to just do the FA thing, let someone else handle some of it.

I think of it as an extra 401K but the only tax advantage is how the FA invests it

And taking the 6 year old with us to a beach in Mexico sometime this year

Yeah we took a Port A trip last month w the kids. We're in dfw

keep building your nest egg / emergency fund

in what situations would doing backdoor Roth IRA not make sense?
actually curious

This is the answer. I'm not familiar if you can do a Roth IRA with all those others you're doing,but if you could that's tax free trading.

Check the interest rate on your Capital One savings account. Make sure you're not leaving some very easy money on the table by not having it someplace drawing 4-5% interest.

I think that's the low hanging fruit. Other questions and suggestions are tougher.

Park the extra cash in a Robinhood investment account, earning 4.65% and insured up to $2 mil, then invest when/if you are ready.

hoosier-daddy said:

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Wife and I max out Roth 401ks
HSA maxed
Paying down 30 year mortgage in 15 or less
529s being funded
No car payments

Have some in 5% Capital One CD
The rest just sitting in Capital One savings
Don't qualify for Roth IRA (don't know if that would be a good idea anyway since we already do Roth 401k)
Don't want to pay a financial advisor but don't want to screw up either

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Backdoor Roth IRA is an option

See if your employer allows for Roth In-Plan Conversion on after-tax contributions to your 401k. If so, dump any extra income in there. (This can get you up to a $66k limit.)

If the contributions get auto-converted the instant they go in, you'll never pay tax on those gains after age 59.

Agree with this in principal, but where are you getting 5% (other than Marcus savings with referral bonus)?

If your mortgage is under 4%, I would stop trying to pay extra on it and just pay the minimum.

You can also see if your 401k plan allows mega back door roth which might be easier to set up than a regular back door roth and less gotchas (you can't do regular backdoor roth tax free if you already have a traditional ira with tax deferred money in it).

I don't know about 5%, but in that 4-5% range are cd's like at Marcus, or cash deposits at Interactive Brokers are paying 4.58%.

My point was that the OP should take a look at what his cash is earning, in case it's something minimal.

treasury bills are over 5%... doesn't get much more secure than that

topher06 said:

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Agree with this in principal, but where are you getting 5% (other than Marcus savings with referral bonus)?

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pretty much anywhere with a decent money market fund, VMFXX is a bit over 5% currently

OP, you have extra cash but don't want to pay a FA? You don't want to pay an FA, but are scared to screw something up?

And you end up on Texags asking for advice? You do know our fees are higher than a FA, right?

chris1515 said:

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JohnLA762 said:

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OP, you have extra cash but don't want to pay a FA? You don't want to pay an FA, but are scared to screw something up?

And you end up on Texags asking for advice? You do know our fees are higher than a FA, right?

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Our fees might be free, but we could end up costing you plenty!

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Could?

topher06 said:

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Agree with this in principal, but where are you getting 5% (other than Marcus savings with referral bonus)?

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5% isn't hard at all to get right now. T Bills are well over that level (around 5.4% for 6 months or 1 year), a lot of CDs are over that level, and even a few savings accounts.

ea1060 said:

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Tormentos said:

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There is nothing to "screw up" here, just get a brokerage account opened and start recurring buys (weekly, monthly, etc) into some all market fund, for example VTI. This is a good place to start and when you are more comfortable you can get more advanced.

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+1

Invest the extra money into VTI or an S&P 500 fund like SPY.

Backdoor Roth IRA.

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This - would do VOO instead of SPY though

I'd put it into $PDMIX, collect about a 5-5.5% yield, you'll get some upside on the treasuries when yields hold steady or drop in about a year. You could easily get a gain around 10-20%. The duration period is around 5.75 years for the fund and there isn't a reinvestment risk like you have with a MM account. MM funds are great but it's a like a sugar high and won't sustain, you'll have considerable reinvestment risk. On this play you could ride into into a recesssion, make a great return and then feel like investing in securities since you didn't have the gut punch with the equities market. Kind of a no brainer.

This thread is why this forum is a joke.

SF2004 said:

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This thread is why this forum is a joke.

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In the past, I've asked staff to post a sticky of my patented investment advice: "Buy Low; Sell High".

But they won't do it because it would kill traffic to this board once everyone adopted it. Would be no reason to discuss this topic anymore.

YouBet said:

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SF2004 said:

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This thread is why this forum is a joke.

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In the past, I've asked staff to post a sticky of my patented investment advice: "Buy Low; Sell High".

But they won't do it because it would kill traffic to this board once everyone adopted it. Would be no reason to discuss this topic anymore.

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Maybe it's so inane that staff thought better of it.

Wheel strategy. Buy sets of 100 shares of SOXL, TSLL, or TQQQ. Sell weekly calls against the position. You can also sell cash secured puts. I try to do 25% selling puts and 75% selling calls in the current market conditions. Bring in 7-10% monthly returns. Obviously, be careful around any speakers for congress pertaining to inflation. Market spikes or dips quickly around these talks.