I really appreciate the guidance.+1 to lakpr that your Roth IRAs are backup Emergency Fund. Here’s what I would do in terms of order of operations:From there, I think you have a few options:
- *Fill up your Roth IRAs for 2024 – keep in mind you have until April 2025 to do so
*Given the interest rate, pay off the car note
*Roll his tIRA into his 401k and her tIRA into her 403b so that you can do the backdoor IRA once your income exceeds Roth limits
*Make sure you’re taking advantage of an FSA or HSA, and other tax-advantaged benefits (i.e. commuter)
- *Increase % contributions to the 403b/401k
*Start a 529; you can deduct up to $8k/year on state taxes.Best of luck!
- Roths can also be used for education expenses, which is why they’re best to prioritize since they’ll give you maximum flexibility down the road
Where does building up the EF w/VUSXX come into the order of operations?
We currently have a 529 for my son which has $53k in it. He's only 7 and we are contributing monthly, so I am not afraid of being underfunded once we goes to college.
Statistics: Posted by Lloyd Christmas — Tue Jul 23, 2024 1:00 pm — Replies 5 — Views 327
