Need some advice. I am a simple person and have not thought much about some massive or strategic diversification of my net worth. I am 40 yrs old. Net worth of $2.2M. It is simply categorized in three buckets - $1M in 401K, $0.8M in bank and $0.3M in fully paid house. My house and 401K are appreciating at a good rate of 10-15%. Now after joining this app, I am seeing alternatives such as Roth IRA, Index Funds, Kids 529(?), annuity, tax saving strategies…there is so much. Where should I start?

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Get all but rainy day out of the “bank” and into an index fund, back door ira for you and spouse, and after tax megabackdoor roth ira.

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I use investopedia for some specific advice, but the rest is pretty basic. You can do a basic s&p index for pretty much everything.

Are you an S& partner? If so, the firm has some good advisors that will help you out for free on the basics. You need the basics (though M1 gave you a good start)

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I am also happy to help, having thought through this.

Where’s the other $0.1M? Cash?

funny

House is more like $0.4M

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Thanks M1 and others

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You have too much money to get one time financial consultation

wtf $800k in the bank

Thanks!

Very helpful. Has someone created a financial model to see the benefit of 401K vs mega backdoor Roth IRA conversion on what will be the total benefit under different assumptions of tax rates over 20 yrs (40
to 60 Years of Age) ? I will look online as well but seems like a unanimous approval for Roth IRA vs traditional 401K…

Yea agreed. Lots of assumptions on your earnings now vs future and what may happen to tax rates. I’m sure it also depends on how much you want in the bank to hit your FIRE number. If you can’t max out all of them I like having some Roth and some traditional dollars because I then have some tax diversification in retirement.

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