Where to invest 6k in Roth?

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Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Where to invest 6k in Roth?

Post by jack22 »

All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
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anon_investor
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Re: Where to invest 6k in Roth?

Post by anon_investor »

jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
100% VTSAX and chill.
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

anon_investor wrote: Tue Apr 13, 2021 11:55 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
100% VTSAX and chill.
Should I do that right away or wait ?
User avatar
Metsfan91
Posts: 203
Joined: Sat Jan 11, 2020 12:33 pm

Re: Where to invest 6k in Roth?

Post by Metsfan91 »

jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
VTSAX is a great fund for long term.
“Time is your friend; impulse is your enemy.” — John C. Bogle
b12
Posts: 4
Joined: Fri Apr 09, 2021 9:48 am

Re: Where to invest 6k in Roth?

Post by b12 »

jack22 wrote: Wed Apr 14, 2021 12:05 am
anon_investor wrote: Tue Apr 13, 2021 11:55 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
100% VTSAX and chill.
Should I do that right away or wait ?
Consider reading https://www.bogleheads.org/wiki/Dollar_cost_averaging on the Bogleheads wiki. For a long-term horizon, you may achieve better outcomes by being in the market for longer (i.e. lump-sum).
User avatar
dogagility
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Re: Where to invest 6k in Roth?

Post by dogagility »

Invest in VTSAX.

You might question your slice/dice investing strategy should it underperform... which would lead to performance chasing... and lower returns.
All children spill milk. Learn to smile and wipe it up. -- A Farmer's Wife
McDougal
Posts: 265
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Re: Where to invest 6k in Roth?

Post by McDougal »

jack22 wrote: Wed Apr 14, 2021 12:05 am
anon_investor wrote: Tue Apr 13, 2021 11:55 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
100% VTSAX and chill.
Should I do that right away or wait ?
Wait for what?
User avatar
anon_investor
Posts: 6178
Joined: Mon Jun 03, 2019 1:43 pm

Re: Where to invest 6k in Roth?

Post by anon_investor »

jack22 wrote: Wed Apr 14, 2021 12:05 am
anon_investor wrote: Tue Apr 13, 2021 11:55 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
100% VTSAX and chill.
Should I do that right away or wait ?
Yes, why not? Invest when you can afford to.
Slacker
Posts: 902
Joined: Thu May 26, 2016 8:40 am

Re: Where to invest 6k in Roth?

Post by Slacker »

The only thing I would wait for is to complete the backdoor from non deductible to roth. Immediately upon completing the backdoor I'd invest it in your selected funds.

I don't like to purchase funds in the non deductible prior to rollover.
SuperTrooper87
Posts: 101
Joined: Tue Jan 26, 2021 6:42 am

Re: Where to invest 6k in Roth?

Post by SuperTrooper87 »

Is there a pro to vtsax over VTi in Roth?
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ruralavalon
Posts: 21114
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Location: Illinois

Re: Where to invest 6k in Roth?

Post by ruralavalon »

jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
Vanguard Total Stock Market Index Fund VTSAX) is an excellent choice for a Roth IRA in my opinion.
SuperTrooper87 wrote: Wed Apr 14, 2021 9:26 am Is there a pro to vtsax over VTi in Roth?
It's just personal preference.

They are just different share classes of the same fund.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

Thanks all for the advice , I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which
I did not know .. I am not sure why ..Just thought I will let you all know.

Cheers
User avatar
retired@50
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Location: Living in the U.S.A.

Re: Where to invest 6k in Roth?

Post by retired@50 »

jack22 wrote: Wed Apr 14, 2021 2:16 pm Thanks all for the advice , I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which
I did not know .. I am not sure why ..Just thought I will let you all know.

Cheers
If you choose to use Fidelity as your broker, then you can avoid this $75 fee by using the Vanguard ETF called VTI.

VTI holds the same stocks as VTSAX since it is just another share class of the same fund, so you're buying the same thing, just without the fee.

Regards,
This is one person's opinion. Nothing more.
investmax
Posts: 57
Joined: Thu Mar 11, 2021 8:00 pm

Re: Where to invest 6k in Roth?

Post by investmax »

jack22 wrote: Wed Apr 14, 2021 2:16 pm Thanks all for the advice , I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which
I did not know .. I am not sure why ..Just thought I will let you all know.

Cheers
TD Ameritrade will charge 49.99 for Vanguard Mutual funds. You can buy the equivalent ETF's like VTI for without transaction fee in TD. It may be same in Fidelity. But once you buy a minimum purchase of MF you may be able to schedule an automatic systematic reinvestment for free. I have similar thing setup in my taxable
User avatar
Duckie
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Joined: Thu Mar 08, 2007 2:55 pm

Re: Where to invest 6k in Roth?

Post by Duckie »

jack22 wrote: Tue Apr 13, 2021 11:47 pm I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
I advise you to purchase a total US stock index fund (mutual fund or ETF) once you have converted. Before the conversion keep the money in the cash settlement fund. The gains will be minimal and there will be no losses to track.
I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which I did not know.
Well, it you had said you were at Fidelity we would have warned you about the transaction fees on non-Fidelity mutual funds.

If at Fidelity you can purchase ETFs without a transaction fee so VTI, ITOT or SCHB would all be suitable total US stock index ETFs. If you want mutual funds instead of ETFs then choose a Fidelity fund. Either FSKAX or FZROX would work.

(VTI) Vanguard Total Stock Market ETF (0.03%)
(ITOT) iShares Core S&P Total US Market ETF (0.03%)
(SCHB) Schwab US Broad Market ETF (0.03%)
(FSKAX) Fidelity Total Market Index Fund (0.015%)
(FZROX) Fidelity Zero Total Market Index Fund (0.00%)
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

investmax wrote: Wed Apr 14, 2021 4:41 pm
jack22 wrote: Wed Apr 14, 2021 2:16 pm Thanks all for the advice , I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which
I did not know .. I am not sure why ..Just thought I will let you all know.

Cheers
TD Ameritrade will charge 49.99 for Vanguard Mutual funds. You can buy the equivalent ETF's like VTI for without transaction fee in TD. It may be same in Fidelity. But once you buy a minimum purchase of MF you may be able to schedule an automatic systematic reinvestment for free. I have similar thing setup in my taxable
if I open a account with vanguard and buy direct
Is that free or still there is a transaction fee ? The one above is for Roth and I want to open a separate brokerage account and
My plan is to buy VTSAX as a periodic investment.. any advice ?
elle
Posts: 74
Joined: Thu Mar 13, 2014 3:13 pm

Re: Where to invest 6k in Roth?

Post by elle »

What's your goal with this money? If by "horizon is long term", you mean stable, retirement income, then index funds other posters have mentioned.

I have very few vices in life, so I use mine as "play" money to buy individual stocks. If I lost it all, it doesn't jeopardize my retirement and I like being able to trade and not deal with the tax implications of a regular brokerage account. So far my gambling is paying off decently. 8-)
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
User avatar
Wiggums
Posts: 3737
Joined: Thu Jan 31, 2019 8:02 am

Re: Where to invest 6k in Roth?

Post by Wiggums »

I buy vanguard funds at vanguard and Fidelity funds at Fidelity.

Zero fees to buy funds the normal three fund portfolio funds or ETFs using this method.

I bought more stock today also. You are in good company. :-)
Texanbybirth
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Joined: Tue Apr 14, 2015 12:07 pm

Re: Where to invest 6k in Roth?

Post by Texanbybirth »

Wiggums wrote: Wed Apr 14, 2021 5:41 pm I buy vanguard funds at vanguard and Fidelity funds at Fidelity.

Zero fees to buy funds the normal three fund portfolio funds or ETFs using this method.

I bought more stock today also. You are in good company. :-)
That’s what we do.

(I bought more stock today, too. :beer )
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
RXfiles
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Re: Where to invest 6k in Roth?

Post by RXfiles »

VT /thread
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

Duckie wrote: Wed Apr 14, 2021 5:23 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
I advise you to purchase a total US stock index fund (mutual fund or ETF) once you have converted. Before the conversion keep the money in the cash settlement fund. The gains will be minimal and there will be no losses to track.
I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which I did not know.
Well, it you had said you were at Fidelity we would have warned you about the transaction fees on non-Fidelity mutual funds.

If at Fidelity you can purchase ETFs without a transaction fee so VTI, ITOT or SCHB would all be suitable total US stock index ETFs. If you want mutual funds instead of ETFs then choose a Fidelity fund. Either FSKAX or FZROX would work.

(VTI) Vanguard Total Stock Market ETF (0.03%)
(ITOT) iShares Core S&P Total US Market ETF (0.03%)
(SCHB) Schwab US Broad Market ETF (0.03%)
(FSKAX) Fidelity Total Market Index Fund (0.015%)
(FZROX) Fidelity Zero Total Market Index Fund (0.00%)
Thanks much this helps .. I’m going to open a vanguard
Brokerage account and buy VTSAX there periodically
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

elle wrote: Wed Apr 14, 2021 5:38 pm What's your goal with this money? If by "horizon is long term", you mean stable, retirement income, then index funds other posters have mentioned.

I have very few vices in life, so I use mine as "play" money to buy individual stocks. If I lost it all, it doesn't jeopardize my retirement and I like being able to trade and not deal with the tax implications of a regular brokerage account. So far my gambling is paying off decently. 8-)
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
The goal is for retirement and king term
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

Also What are admiral shares ? When I bought it today for 6k
It said admiral and min investment 2.5k

Thanks
User avatar
ruralavalon
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Location: Illinois

Re: Where to invest 6k in Roth?

Post by ruralavalon »

jack22 wrote: Wed Apr 14, 2021 5:36 pm
investmax wrote: Wed Apr 14, 2021 4:41 pm
jack22 wrote: Wed Apr 14, 2021 2:16 pm Thanks all for the advice , I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which
I did not know .. I am not sure why ..Just thought I will let you all know.

Cheers
TD Ameritrade will charge 49.99 for Vanguard Mutual funds. You can buy the equivalent ETF's like VTI for without transaction fee in TD. It may be same in Fidelity. But once you buy a minimum purchase of MF you may be able to schedule an automatic systematic reinvestment for free. I have similar thing setup in my taxable
if I open a account with vanguard and buy direct
Is that free or still there is a transaction fee ? The one above is for Roth and I want to open a separate brokerage account and
My plan is to buy VTSAX as a periodic investment.. any advice ?
In an account at Vanguard there is no fee to purchase either Vanguard Total Stock Market Index Fund (VTSAX) or the ETF share class (VTI).

In an account at Fidelity you can purchase Vanguard Total Stock Market ETF (VTI) with no transaction fee.

Both VTSAX and VTI in a taxable account are very tax-efficient.

My personal preference is VTSAX, in an account at Vanguard.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
ForTheLongHaul
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Re: Where to invest 6k in Roth?

Post by ForTheLongHaul »

jack22 wrote: Wed Apr 14, 2021 6:20 pm
Duckie wrote: Wed Apr 14, 2021 5:23 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
I advise you to purchase a total US stock index fund (mutual fund or ETF) once you have converted. Before the conversion keep the money in the cash settlement fund. The gains will be minimal and there will be no losses to track.
I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which I did not know.
Well, it you had said you were at Fidelity we would have warned you about the transaction fees on non-Fidelity mutual funds.

If at Fidelity you can purchase ETFs without a transaction fee so VTI, ITOT or SCHB would all be suitable total US stock index ETFs. If you want mutual funds instead of ETFs then choose a Fidelity fund. Either FSKAX or FZROX would work.

(VTI) Vanguard Total Stock Market ETF (0.03%)
(ITOT) iShares Core S&P Total US Market ETF (0.03%)
(SCHB) Schwab US Broad Market ETF (0.03%)
(FSKAX) Fidelity Total Market Index Fund (0.015%)
(FZROX) Fidelity Zero Total Market Index Fund (0.00%)
Thanks much this helps .. I’m going to open a vanguard
Brokerage account and buy VTSAX there periodically

If you already have a Fidelity account, just buy FSKAX. It and VTSAX are almost identical.

https://www.askfinny.com/compare/VTSAX-vs-FSKAX
investmax
Posts: 57
Joined: Thu Mar 11, 2021 8:00 pm

Re: Where to invest 6k in Roth?

Post by investmax »

jack22 wrote: Wed Apr 14, 2021 5:36 pm
investmax wrote: Wed Apr 14, 2021 4:41 pm
jack22 wrote: Wed Apr 14, 2021 2:16 pm Thanks all for the advice , I did invest in VTSAX few minutes back the lump sum. Fidelity charged me $75 as fees to buy VTSAX which
I did not know .. I am not sure why ..Just thought I will let you all know.

Cheers
TD Ameritrade will charge 49.99 for Vanguard Mutual funds. You can buy the equivalent ETF's like VTI for without transaction fee in TD. It may be same in Fidelity. But once you buy a minimum purchase of MF you may be able to schedule an automatic systematic reinvestment for free. I have similar thing setup in my taxable
if I open a account with vanguard and buy direct
Is that free or still there is a transaction fee ? The one above is for Roth and I want to open a separate brokerage account and
My plan is to buy VTSAX as a periodic investment.. any advice ?
If you open up a separate brokerage account with Vanguard, all regular Vanguard mutual funds like VTSAX, VFIAX etc are transaction fee and commission free. You can set up VTSAX as a periodic investment and then once you buy the first tranche of VTSAX for minimum $3000, subsequent to that you can add to this periodically in any amount in multiples of $1. I mean once you buy the initial minimum, the subsequent investments can be $100 weekly or anything like this.
elle
Posts: 74
Joined: Thu Mar 13, 2014 3:13 pm

Re: Where to invest 6k in Roth?

Post by elle »

jack22 wrote: Wed Apr 14, 2021 6:25 pm Also What are admiral shares ? When I bought it today for 6k
It said admiral and min investment 2.5k

Thanks
Lower expense ratios than the standard.
User avatar
Brianmcg321
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Re: Where to invest 6k in Roth?

Post by Brianmcg321 »

anon_investor wrote: Tue Apr 13, 2021 11:55 pm
jack22 wrote: Tue Apr 13, 2021 11:47 pm All - I have contributed 6k to traditional IRA ( non deductible) for 2020 and in the process of converting to ROTH IRA ( back door strategy)
Can you please advice whether I should invest this 6k in index fund like VTSAX or buy some good growth stocks ( any suggestions?)
My horizon is long term and I will do this contribution every year as non deductible as I am not eligible for ROTH IRA contribution.

Please advice

Thanks
Jk
100% VTSAX and chill.
Follow this advice. VTSAX all the way.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
dukeblue219
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Re: Where to invest 6k in Roth?

Post by dukeblue219 »

ForTheLongHaul wrote: Wed Apr 14, 2021 8:19 pm If you already have a Fidelity account, just buy FSKAX. It and VTSAX are almost identical.

https://www.askfinny.com/compare/VTSAX-vs-FSKAX
This would be my advice simply to avoid having multiple accounts, and my preference is that Fidelity is a vastly better platform anyway.

There's nothing about being a Bogle Head that necessarily promotes Vanguard over Fidelity or others. Just keep or sell the VTSAX (a sell will be free btw) and buy FSKAX from here on out.

But VTSAX at Vanguard is cool, too.
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

Thanks I don’t have a personal preference too ..
If these 2 are similar in terms of returns and expense ratio
It really doesn’t matter ..

Thanks
User avatar
ruralavalon
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Location: Illinois

Re: Where to invest 6k in Roth?

Post by ruralavalon »

jack22 wrote: Thu Apr 15, 2021 4:47 pm Thanks I don’t have a personal preference too ..
If these 2 are similar in terms of returns and expense ratio
It really doesn’t matter ..

Thanks
Fidelity Total Market Index Fund (FSKAX) and Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) are very similar funds, both are very diversified U.S. stock funds with very low expense ratios. Their historical performance has been nearly identical. Portfolio Visualizer 2012-2021.

If using an IRA at Fidelity then use the Fidelity fund.

If using an IRA at Vanguard then use the Vanguard fund.

My personal preference is Vanguard.
Last edited by ruralavalon on Thu Apr 15, 2021 5:03 pm, edited 1 time in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
veggivet
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Location: New England

Re: Where to invest 6k in Roth?

Post by veggivet »

Don't add unneeded complexity with another account with Vanguard. Just buy either VTI or ITOT and sit back and don't watch! 😉
If you watch your pennies, your dollars will take care of themselves.
brademac
Posts: 67
Joined: Sat Oct 27, 2018 4:50 pm

Re: Where to invest 6k in Roth?

Post by brademac »

If it were me I would do:

$3000 Vanguard Total stock market

$3000 Vanguard Small Cap Value

Each have $3,000 minimum to open so you got just enough to do both.
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

brademac wrote: Thu Apr 15, 2021 7:12 pm If it were me I would do:

$3000 Vanguard Total stock market

$3000 Vanguard Small Cap Value

Each have $3,000 minimum to open so you got just enough to do both.
Good idea next time I would split.this time 100% I invested
In VTSAx
Pimmerman
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Re: Where to invest 6k in Roth?

Post by Pimmerman »

Not knowing your financial situation, your age/proximity to retirement, your risk aversion etc. answers may not really fit well for you. That said, VTSAX is an excellent well diversified index fund and has served me very well.
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

Pimmerman wrote: Thu Apr 15, 2021 8:08 pm Not knowing your financial situation, your age/proximity to retirement, your risk aversion etc. answers may not really fit well for you. That said, VTSAX is an excellent well diversified index fund and has served me very well.
43 years old and at least 10 years away from retirement .
This 6k is going to Roth as a conversion from TIRA as a back door
Strategy as I’m not eligible for Roth direct contribution. Me and my wife max out on 401k and we contribute 12k per annum
To traditional ira and do the back door.
I want to invest in index funds outside retirement accounts
As well .. is there any other suggestion or best way to do that ?
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ruralavalon
Posts: 21114
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Location: Illinois

Re: Where to invest 6k in Roth?

Post by ruralavalon »

jack22 wrote: Thu Apr 15, 2021 9:10 pm
Pimmerman wrote: Thu Apr 15, 2021 8:08 pm Not knowing your financial situation, your age/proximity to retirement, your risk aversion etc. answers may not really fit well for you. That said, VTSAX is an excellent well diversified index fund and has served me very well.
43 years old and at least 10 years away from retirement .
This 6k is going to Roth as a conversion from TIRA as a back door
Strategy as I’m not eligible for Roth direct contribution. Me and my wife max out on 401k and we contribute 12k per annum
To traditional ira and do the back door.
I want to invest in index funds outside retirement accounts
As well .. is there any other suggestion or best way to do that ?
It's great to see that you make maximum annual contributions to your tax-advantaged accounts, both the 401ks and backdoor Roth IRAs.

In general in a taxable brokerage account use very tax-efficient stock index funds. Wiki article "Tax-efficient fund placement", link.

If the taxable account is at Vanguard examples of very tax-efficient stock index funds to use include:
1) Vanguard Total Stock Market Index Fund (VTSAX) ER 0.04%; and
2) Vanguard Total International Stock Index Fund (VTIAX) ER 0.11%.

If the taxable brokerage account is at Fidelity don't use regular Fidelity stock index funds, for better tax-efficiency use stock index exchange traded funds (ETFs) like:
1) Vanguard Total Stock Market ETF (VTI) ER 0.03%, or iShares Core S&P Total U.S. Stock Market ETF (ITOT) ER 0.03; and
2) Vanguard Total International Stock ETF (VXUS) ER 0.08%, or iShares Core MSCI Total International Stock ETF (IXUS) ER 0.09%.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
Topic Author
jack22
Posts: 43
Joined: Tue Feb 09, 2021 6:00 pm

Re: Where to invest 6k in Roth?

Post by jack22 »

ruralavalon wrote: Fri Apr 16, 2021 10:38 am
jack22 wrote: Thu Apr 15, 2021 9:10 pm
Pimmerman wrote: Thu Apr 15, 2021 8:08 pm Not knowing your financial situation, your age/proximity to retirement, your risk aversion etc. answers may not really fit well for you. That said, VTSAX is an excellent well diversified index fund and has served me very well.
43 years old and at least 10 years away from retirement .
This 6k is going to Roth as a conversion from TIRA as a back door
Strategy as I’m not eligible for Roth direct contribution. Me and my wife max out on 401k and we contribute 12k per annum
To traditional ira and do the back door.
I want to invest in index funds outside retirement accounts
As well .. is there any other suggestion or best way to do that ?
It's great to see that you make maximum annual contributions to your tax-advantaged accounts, both the 401ks and backdoor Roth IRAs.

In general in a taxable brokerage account use very tax-efficient stock index funds. Wiki article "Tax-efficient fund placement", link.

If the taxable account is at Vanguard examples of very tax-efficient stock index funds to use include:
1) Vanguard Total Stock Market Index Fund (VTSAX) ER 0.04%; and
2) Vanguard Total International Stock Index Fund (VTIAX) ER 0.11%.

If the taxable brokerage account is at Fidelity don't use regular Fidelity stock index funds, for better tax-efficiency use stock index exchange traded funds (ETFs) like:
1) Vanguard Total Stock Market ETF (VTI) ER 0.03%, or iShares Core S&P Total U.S. Stock Market ETF (ITOT) ER 0.03; and
2) Vanguard Total International Stock ETF (VXUS) ER 0.08%, or iShares Core MSCI Total International Stock ETF (IXUS) ER 0.09%.
thank you , as suggested and to avoid multiple
Accounts ( not open in vanguard) I will use fidelity to buy VTI
On a periodic basis... thanks again for this lovely guidance
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