Welcome to the forum.Hi all,
I recently came in to about $450K in cash and am interested in this community's advice on the best investment strategy for it. I'm a personal finance and investment enthusiast and all of my investments are in low-cost index funds.
My spouse and I already max out our 401Ks, Roth IRAs, HSA, and we're contributing to a mega backdoor roth (in-plan conversion for our 401K). We contribute monthly to our taxable brokerage account (all invested in low-cost Vanguard index funds), and we contribute monthly to our three kids' college savings plans. Our retirement horizon is roughly 20 years out give or take.
My financial advisor recommended gradually investing the cash into my brokerage account over the next 6 months. Generally, I'm a proponent of dollar cost averaging but am also aware that the stock market is at an all-time high, so curious if I should take my advisor's recommendation of investing the money into my brokerage account over the next 6 months vs. hold some in high-yield savings to see if the market pulls back at all vs. lump sum investing it all now.
We don't have any big spending planned at the moment, though are considering a couple house projects which could add up to $60-70K total.
Any advice would be appreciated.
Step 1 for me would be to max out the mega backdoor Roth sub-account in the 401k.
If that shrinks your paycheck too much for your comfort, then spend some of the $450k on your monthly bills and expenses.
The general idea is that you're moving the $450k from taxable to Roth - which is a big win in my book.
If I had to guess, the advisor is getting paid based on the balance in your taxable account, which could be one reason why this strategy wasn't discussed.
Regards,
Statistics: Posted by retired@50 — Mon Jul 08, 2024 10:16 am — Replies 6 — Views 335