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EY, I got my Roth IRA contributions set to max (30%). Does Fidelity automatically lower the % and stop contributions afterwards once I reach my 2022 limit?
Also at Deloitte, I had a couple thousand contributed in the beginning of the year. Does EY's 401k keep track of that as well towards the limit?
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Chief
Wouldn’t they all be the same? The point of a money market fund is to track the dollar, so every share is worth $1.00 all the time.
You might find very marginal differences in expense ratio or interest but I don’t think it’s worth more than a few minutes to compare if we’re talking normal amounts of money.
Yes. But that’s the broker I use. Never used any money market fund. If you use them currently can you recommend one or two?
Wouldn’t be able to do it in E*Trade, but treasury i Bonds (inflation bonds) are currently yielding over 7%. Can buy direct and after 1 year, you can cash out. Interest rate changes every 6 months based on inflation, but should be good for at least the next year. Not ideal if you are using as an emergency fund, but if you want to diversify out of all stocks, this is much better than corporate bonds or cash
Chief
Don’t time the market
So you eventually want to go 100% stocks? In that case, just make sure you have a decent emergency fund in cash set up separately (3-6 months of expenses is a decent rule of thumb to use as a starting point).
Would agree with McK1 - don’t time the market, but if you want to cost average out (I.e. invest 25% of your starting lump sum over the next 4 months, it’s not terrible - studies are out for passive investing showing this both does/doesn’t work well vs just investing up front.
Chief
Yes, that happens all the time for individual stocks. It rarely happens to the broad market and isn’t something you can time.