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Hey Fishes
Can anyone share Mutual Fund schemes in their Portfolio?
I am a newbie and planning to start investing via SIP's in MF ( Around 4-5 SIP's of 10k each)
Thanks in advance.
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Does Bank of America do a Mega Back door 401K?
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Rising Star
IMO, Backdoor means (1) you are a high income earner who is priced out of benefits of a tIRA and (2) you should have the ability to max our your 401k.
For me, a backdoor Roth is when I have already maxed out my tax advantaged accounts (ie 401k).
So at that point my question is either backdoor Roth or regular brokerage? For which the answer is simple - take the tax free earnings!
Rising Star
This. Your original question didn’t set yourself up correctly. Your reasoning was more to determine if Roth or tradition (regardless of 401k or Ira) is correct for you.
I would recommend modeling out what you think your retirement income will be based on your retirement account contributions. If your retirement income will be greater in real dollars than your current income, then Roth would make sense. I recently built a simple model for this if you’re interested
Sure, dm me
Does this mean if they make less than 150k a year in retirement the backdoor isn’t a good idea? Thanks in advance
Rising Star
If the options are backdoor Roth IRA vs traditional IRA the answer depends. I like Roth backdoor early on in your career when your earning potential is still high and very unknown. 10 years from now OP might be making $500k and be very glad they payed the taxes on their Roth contributions back when they were only making $150k. That’s my goal at least 😂 if you’re a realist/pessimist then sure maybe you’ll make less in retirement then you do now at the age of 28 or whatever. But in my experience people who are smart with their money and high earners in their 20s continue on that path throughout life.
https://www.bloomberg.com/amp/opinion/articles/2020-07-27/retirement-saving-in-covid-should-i-go-traditional-or-roth-ira
This article is a good read
Jesus $150k at 28. I did something wrong - $92k at 29 😆🤡😥. You're killing it
I was making $50K until 26 - and then got some good referrals thanks to my network and was able to job hop for a huge increase (I found someone I’m actually friends with who’s in strategy)
A bit of a lucky break, plus I think I interview well.
So far in my career, who you know > what you know
Amazing salary....congratulations