@j1991 This. This is bigger than you OP. Think of your kids or future wife. They’ll appreciate you made them millionaires young if you die. Your family tree will have a head start
@fredg61 Yes! There are no taxes owed on inherited Roth IRAs. They can even continue to grow tax free for 5 years after the original owner passes away. (The only real exception is estate tax, in some cases, which is a whole other issue but doesn’t apply to most people.)
What I feel for you is pride! At 28 you are debt free, you have a fantastic emergency savings fund, and you’re in a fantastic retirement situation. As others have said, you can even withdraw your Roth contributions (not earnings) at any time, because taxes are already paid.
@victoryforever You may want to just balance out your payments to your ira over 12 months that way it’s a little less harsh on your bank account at once
@victoryforever I think you’re doing everything right I wish my daughter and her husband would do the same.
Far as investment property. I don’t know about that.
It seems kinda taken on more risk than you need to.
Real estate investment for noobs is rough and you’re worried about putting money in the Roth IRA? It might be more trouble than it’s worth trust me investment gurus make it sound real easy it’s not.
@bsumvp12 Hey, thanks for the comforting words. I understand what you’re saying. I honestly just don’t know what other source of income/investments I can make other than buying real estate. It’s always been a dream of mine to buy an investment property.
@victoryforever You will like it in 5 years when it starts showing real gains. Keep maxing it out. Stay heavily in equities. You're young and it will pay off.
@victoryforever one psychological thing you could do is consolidate your finances into one platform, such as Fidelity, then you can see everything all together and it’s like the money never left. you also know you can pull those contributions out whenever so alls good
@victoryforever You’re doing the right thing. Keep in mind you can always withdraw your contributions from a Roth IRA. When I was starting to invest, I prioritized the IRA for that reason.
@victoryforever You did the right thing and you’re doing great. Next time, if you’re worried, just contribute monthly instead of the lump sum. If you don’t make it to 59.5, your beneficiaries will get your money. So your money will not be lost. Otherwise, people make all kinds of excuses not to contribute and in the end they suffer in their old age.
@resjudicata Thanks for the kind words! I’m obviously a little new to this, but do you think if I contribute the lump sum of $7k in February or March instead of January, it would make a significant difference? Just realized I have to renew my auto insurance policy in January so having $7k plus $1.8k coming out the same month would stress me out.
Thinking of cancelling my transfer of $7k and doing it in February or March instead.
@victoryforever It won’t make a huge difference but lump summing in the beginning of the year for many years should result in more money for you in the end. However, it sounds to me that you need to contribute to Roth IRA monthly because you made a comment that you’re worried you don’t have enough in your emergency savings account. Keep in mind, and someone already said it, that you should be able to withdraw contributions penalty free from your Roth IRA after like 5 years or something like that.
