Quote:
Originally Posted by Shag
This is awesome, thanks! I'm single, so just trying to get myself to retirement, find a sugar mama, or both. Or buy a place in Tahoe, whichever comes first. 
I max out my 401k every year, but that does bring up another option I've been considering - mega backdoor roth IRA. This is an option through my employer, and seems like an awesome loophole for tax-free growth to retirement. I think the max is like 66k/yr (including traditional 401k), and trying to figure out if it makes sense when I'm at my highest tax burden. Anyone doing this?
The VOO/VUG thing is kind of what I had in mind. I threw some money into VTI a couple years ago, which was supposed to be a nice growth ETF, but it's been entirely flat. I'll look into those two a bit. |
Congrats on maxing out your 401K. That's ****ing awesome. Seriously.
If your company is offering a backdoor Roth, I'd probably do it. I haven't done one, but if a qualified plan is offering it, I'd be down. My comment about making sure you like your investments in your plan still stands. Seems like companies have gotten more progressive recently, but I don't know, I'm kind of out in the cold these days. If you're comfortable with the funds, I'd probably do it.
That being said, I'm like 1,000% more cash conscious than I was a couple years ago. Now that you can get 5+ for holding cash and borrowing money (probably) won't outperform the market, I'm holding a lot more cash than I have in years past. When I could get 2% money I didn't have a problem financing a car for instance. Now, if it's going to cost 8%, I'm not feeling it. So I'm keeping cash back for those kinds of purchases, where I did less before. 1. I'm incentivized to do so. (Cash is unlikely to outperform inflation, but 5% is much closer than 0%, especially when historic return of the S&P is 8% cash is much more attractive), 2. The cost of a little liquidity is substantially more expensive.
Accordingly, if you don't have a good bit of cash that's liquid, I'd leave some out, just for in case shit money. Once it goes into the tax shelter, it doesn't come back out.
VTI is a total market fund, so it has every stock on the market. I've considered it because it is as diversified as you get, but it has all the losers too. VOO (S&P) just has the biggest 500 companies, so there are less likely to be big losers (but it's not impossible, see GE, Philip Morris, etc).
Again, JMO. I'm certainly open to being a dumbass.