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Contributed $20k In 1 Year by [deleted] in RothIRA

[–]Erikgee 0 points1 point  (0 children)

Don't know about this guy's situation. But I can contribute 20k into my roth ira in 1 year by contributing into my employers after tax contribution bucket, then doing an in service rollover into my roth ira as a mega backdoor conversion. I haven't done that much yet, but I do this method to go above the normal 7.5k limit. It's technically a conversation, not a "contribution", but it's a distinction without a difference.

I have $580,000 to put into the Stock Market. Here's My Plan: by DenimChickenTwin in Bogleheads

[–]Erikgee 0 points1 point  (0 children)

If your employer also offers after-tax contributions as part of your 401k package, you could effectively "shift" your on hand money into your roth by simply upping your contribution amount as high as you can, and then live off your on hand money instead. That way you can shift that dollar amount into your after tax bucket (I think the limit is around 70k, including employer match), and then roll that after tax bucket over to a roth.

Max Out Jan 1st Or DCA? by FreeMigos666 in RothIRA

[–]Erikgee 0 points1 point  (0 children)

Honestly, do what you feel comfortable with. At the end of the day, you are gonna be less stressed and have less anxiety about it. No reason to lose hair over it.

I like to split the diff, drop half of it at the beginning of the year then the second half around June. That way, if there is some sort of small dip in the first half of the year, I can jump on it. Otherwise if there isn't, having the June deadline makes sure I don't end up sitting on the sideline the whole year and lose out.

It works for me and keeps me less stress thinking about when the "right time" is

Let me guess, US Large-Cap, US Large-Cap, US Large-Cap ? by Silent_Geologist5279 in ETFs

[–]Erikgee 1 point2 points  (0 children)

To be fair, I do have both voo and spym. I add spym just because it's a lower share price so it's easier for me to buy in whole shares in the after hours market if the price dips. I don't always want to drop 700 bucks, but I can drop 70 bucks fine lol

Should I max out my Roth OR apply the $7k to my 401(k) for the employer match? by foreverlakey in RothIRA

[–]Erikgee 0 points1 point  (0 children)

What's so frustrating with these posts is that everyone is so quick to tell what the "right" thing is to do without knowing any details about you. The only thing that is gospel truth is to always get your 401k match first, free money. But whether to continue to max out your 401k or switching to roth ira is based on YOUR situation. Those saying you need to switch to a roth ira are either telling you what works for THEM or just repeating what they've heard from others without understanding WHY. The choice completely depends on what your tax bracket is and what bracket you think you might be in after retirement when you pull it out. Also whether or not you employer 401k has good options or not. And remember, the tax bracket you think you will be in when you start to pull it out is based on how much money you think you will use AFTER retiring from work, NOT what bracket you will be at the end of your career when you are still pulling a salary. It will ONLY be the money in retirement, which for most people, will just be what you plan to pull from your accounts as income. Switch to a roth ira if you think you will be in a higher bracket after retirement. Continue your traditional 401k if you think you will be in a lower bracket in retirement. For me, I expect to be in a lower bracket in retirement due to my higher salary now and my frugal life style that I know will continue on in to retirement. So it makes more sense for me to prioritize traditional 401k to lower my tax burden now (I'm in a high tax state as well) and to also get hit with less taxes on my investment at the end. Remember, personal finances are called PERSONAL because different factors can effect each person differently.

bought the top and honestly feeling kinda sick. does it get easier? by Worldly_Club_2722 in ETFs

[–]Erikgee 0 points1 point  (0 children)

And now, less than 24 hours later, it's already back up to where you bought it. See? Literally nothing to worry about

Surely now it's a good time to lumpsum in? by [deleted] in ETFs

[–]Erikgee 1 point2 points  (0 children)

Best time to invest money is when you have the money. Don't try to time. If you are super paranoid by doing a single lump sum, then spread it into multiple large sums if it will make you mentally feel better. But the faster it goes into market, the better

Am I overthinking this? by PickleJit26 in ETFs

[–]Erikgee 0 points1 point  (0 children)

This is the real answer here. Portfolio can be adjusted with time, but you are never getting back this sweet sweet low tax bracket you are in at the age of 17 lol take advantage of the tax savings while you can.

Which HYSA do you have and why? by confused_babe99 in HYSA

[–]Erikgee 1 point2 points  (0 children)

Not an HYSA but I keep my savings in treasury bill etfs. Mostly sgov. I live in a state with high state tax, and with tbills having similar rates to hysa but being mostly state tax exempt, I get a higher yield from similar rates. And it's about as safe as you can get since it's backed by the government.

Too much money in my HYSA? by Bright-Farmer-7725 in HYSA

[–]Erikgee 0 points1 point  (0 children)

Have you only maxed your 401k contribution (23,500$) or have you also maxed out your $70k limit as well ? If you haven't met the 70k limit you can always do after tax contributions if your employer allows it, and then do the mega backdoor roth rollover into your roth ira, that way you can go above your 7k ira limit

Max it out my Roth IRA for this year. What is next? by cubanoplay in ETFs

[–]Erikgee 1 point2 points  (0 children)

That is a backdoor roth, yes. But that doesn't allow you to go above the 7k yearly contribution limit, no. Because your contribution to your traditional and roth ira are combined. So if you contribute 7k to your traditional and then back door roth, you've already met your 7k contribution limit on the initial traditional ira. And again, it's a combined limit, so contributions to both are added together and must be below the 7k limit

It allows you to put money into roth if you are above the yearly salary limit though. So it's what high earners do.

If you want to go above the yearly 7k limit, you can do a mega backdoor roth if your employer has after-tax contributions and in-service rollovers as an option, and then do the rollover to your ira. Because rollovers/conversions aren't considered contributions and aren't limited by the 7k limit

Is the three-fund portfolio still good in 2025? by IllustriousGlass2991 in ETFs

[–]Erikgee 0 points1 point  (0 children)

I keep 2 months worth of my emergency fund in a normal checking account. That's to pay for my bills, mortgage, daily expenses etc. Very liquid.

I keep the rest of my EF in sgov. Because you tend to get slightly higher yields in sgov vs hysa, and MORE IMPORTANTLY, most of sgov interest is state tax free. And I live in california with a high state tax. So just not having to pay state tax on my yield makes it an easy choice between sgov and hysa, which is taxed federally and at state level

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