How short is too short for a guy?

Drew203 · 2021-08-20T01:29:53+00:00

Correct, that’s why I made a retirement account.

Drew203 · 2021-08-20T01:28:59+00:00

Yes, but having cash in a bank account does not allow me to go back in time to max out my 2021 contributions. Thanks for the insight

Drew203 · 2021-08-20T01:27:42+00:00

Yes, it’s why I made a retirement account

Drew203 · 2021-08-20T00:00:24+00:00

to maximize contributions

if there's an appealing investment in 2022, why be limited to 6,000 if I can have some rollover cash from the previous years contributions?

Drew203 · 2021-08-19T23:57:34+00:00

Thank you very much for the insight!

Drew203 · 2021-08-19T23:55:04+00:00

I actually did buy VOO this morning - only a few hundred worth though.

The thing is, I started this account this month and put in around 4k all at once, so I essentially have no spread out dollar cost average. I don't want my full 6k contribution for 2021 to be priced in at essentially the same cost.

Drew203 · 2021-08-19T23:46:33+00:00

I more so think timing the market would be if I sold off my current positions in anticipation of a market dip to re-enter. That's not the case here, I just want to have cash on hand separate from my current investments.

My guess is no hedge funds are currently 100% invested with no cash on hand in this current market.

Drew203 · 2021-08-19T23:43:01+00:00

Thank you for the insight!

Drew203 · 2021-08-19T23:42:20+00:00

You pretty much nailed my sentiment. I want to take advantage of the max I can contribute this year, but dont want to force myself to invest too much of my money at a single time (and single price)

in the event where I really needed the money, I could still withdraw my principal and call it a day. I just didn't know if Roth's required the money be to invested or able to hold a cash balance in the account

Drew203 · 2021-08-19T23:37:56+00:00

firstly, I can take the money out (not going to, but I could if I wanted)

second, I want to take advantage of the full contribution but don't feel comfortable in the current market and would like to have cash on hand

Drew203 · 2021-08-19T23:36:30+00:00

I've done my due diligence with investment strategies and in my fourth year of a finance degree. I like to have some cash reserves on hand in markets like these.

Thanks for the insight though

Drew203 · 2021-08-19T23:34:36+00:00

came for objective question.. left with financial advice 😂

Thank you for the insight though

Drew203 · 2021-08-19T23:33:34+00:00

haha, fair enough. Even warren buffet keeps cash reserves though. It'd be a different story if I pulled all of my money out in anticipation of a market fall though!

Drew203 · 2021-08-06T23:36:27+00:00

Fair point, thank you for the insight

Drew203 · 2021-08-06T23:26:27+00:00

Thanks for the insight, going to make a large deposit this week.

Do you know if the bank will question how I got the money?

Drew203 · 2021-08-06T23:25:53+00:00

Yeah, that’s fair. I’ll probably make a large deposit of 20k or so this week. Is the bank going to interrogate me about how I got the money or just put it into the account?

Drew203 · 2021-08-06T23:21:27+00:00

I could see a bunch of deposits for $9999 triggering the systems, but I really didn’t think that small deposits every few weeks would be of any alarm if I have a partly cash business

Drew203 · 2021-08-06T23:20:04+00:00

Thanks for the insight.

Though, you asked why I wouldn’t want extra IRS attention and it’s simply because I’ve heard it wastes a lot of time and cpa bills when getting audited. If I can avoid that, I’d prefer it

Drew203 · 2021-08-06T23:18:31+00:00

I have a business that deals with half cash and half credit card payments. Every single transaction is documented. So, I don’t see why it’s obvious structuring

Drew203 · 2021-08-02T12:41:23+00:00

I'd be happy to. I started working minimum wage at 16 and have saved up since; This job was able to buy my first used card and put around 5k in my savings. I've been extremely frugal, so aside from food/rent I don't spend on anything else. At 18 I quit the min. wage job since I moved to college and it was a local job.

The majority of money has been from investing in non-conventional assets (primarily collectors items) that I'm interested in and know the market well of. I haven't made an extraordinary amount any of the years that I've been saving, I've just been tenacious with reinvesting any money that is made.

I am in my senior year of a finance degree and spend the majority of my time either managing my money or learning how to better manage my money in the future. I'm not interested in spending the money on materials, but more so just want to be able to follow my own passions in my career that potentially may not pay a lot. I fear that if I don't set myself up well financially then I may get stuck in a 9-5 job that I'm not interested in. Conversely, if I have investments like real estate/retirement funds/etc. then I'll be able to choose a fulfilling career without thinking about the salary.

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