With the market tumbling, about to pump some of my liquid cash into the market.

If I can't contribute to a Roth IRA, how do I go about getting this amount invested and into a backdoor IRA?

Would you recommend something else?

Do you have a Roth 401K?

Ghost of Bizbee said:

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If I can't contribute to a Roth IRA, how do I go about getting this amount invested and into a backdoor IRA?

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Contribute $6k to Traditional IRA, then click convert to Roth IRA. Its pretty simple to do on Vanguard.

Ghost of Bizbee said:

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With the market tumbling, about to pump some of my liquid cash into the market.

If I can't contribute to a Roth IRA, how do I go about getting this amount invested and into a backdoor IRA?

Would you recommend something else?

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As noted on the I Bonds thread, $10,000 there first. I'd put a little in SQQQ.

I don't know,

I got berated here when I mentioned I was holding cash. It's significantly larger than the OP's amount. Common thread was inflation is eating away the cash value.

But besides real estate in some market, what's performing better than cash today?

ea1060 said:

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Ghost of Bizbee said:

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If I can't contribute to a Roth IRA, how do I go about getting this amount invested and into a backdoor IRA?

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Contribute $6k to Traditional IRA, then click convert to Roth IRA. Its pretty simple to do on Vanguard.

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What are the rules for this? That's the backdoor Roth?
This seems too easy.

It is that easy. I'm with Fidelity, and I don't even have to click to convert. I just move the funds from my IRA to my Roth and then handle the conversion when I file my taxes.

It's so stupid easy that I don't understand why Congress just doesn't do away with the Roth income limits.

Ghost of Bizbee said:

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ea1060 said:

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Ghost of Bizbee said:

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If I can't contribute to a Roth IRA, how do I go about getting this amount invested and into a backdoor IRA?

---

Contribute $6k to Traditional IRA, then click convert to Roth IRA. Its pretty simple to do on Vanguard.

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What are the rules for this? That's the backdoor Roth?
This seems too easy.

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Those are the rules lol, its that easy. And yes thats for a backdoor Roth IRA.

AggieDruggist89 said:

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I don't know,

I got berated here when I mentioned I was holding cash. It's significantly larger than the OP's amount. Common thread was inflation is eating away the cash value.

But besides real estate in some market, what's performing better than cash today?

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Same. People keep saying this but the market keeps puking while inflation soars. Commodities have done well though.

Ghost of Bizbee said:

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With the market tumbling, about to pump some of my liquid cash into the market.

If I can't contribute to a Roth IRA, how do I go about getting this amount invested and into a backdoor IRA?

Would you recommend something else?

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Buy a dividend producing stock. If you could get 6-7% dividends, would you take it?

Vertex Energy

Ag CPA said:

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AggieDruggist89 said:

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I don't know,

I got berated here when I mentioned I was holding cash. It's significantly larger than the OP's amount. Common thread was inflation is eating away the cash value.

But besides real estate in some market, what's performing better than cash today?

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Hold cash and lose 7% or invest it in the S&P and lose 25%, whichever sounds better to you.

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I'm in the same boat as AggieDruggist and we are about the same age. We were taught that "cash is king" so it's hard to let go of that cash reserve. I'm holding significant cash right now, some of it in CDs (LOL). But I don't want it tied up in overpriced non-liquid real estate or overpriced stock market. I'm waiting a bit to buy a car. I'll pay cash for it and at least avoid interest. Just paid cash for a two year old boat with 50 hours on it. Guy had financed it for 15 years and wanted out of it. I got about a 30% discount vs a new one AND he took my old bass boat in partial trade. Hoping for a similar deal on a newish truck in a few months. That's how I'm maximizing my cash reserves in Biden's economy.

HumpitPuryear said:

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But I don't want it tied up in overpriced non-liquid real estate

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90% of millionaires think differently than you.

I would do this:

$10k I-Bonds
$10k S&P 500 Index Fund
$10k QQQ
$5k AAPL
$5k TQQQ, stop loss at -15%, take profits at +50%

12thMan9 said:

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HumpitPuryear said:

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But I don't want it tied up in overpriced non-liquid real estate

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90% of millionaires think differently than you.

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I rather be in the 10%. Always see the masses go one way then go the opposite way. If I have overpriced real estate, I'd sell it and buy under priced real estate. Unfortunately most real estate today is overpriced and the elevated interest rate isn't helping.

Case in point with one of my accounts - 529 account for my 10th grader, it has enough for 4+ years of undergrad and it was in index based funds. When the masses were buying as market goes up in exuberance, I would rebalance and hold it in cash only to go back when it dips. Call me lucky but I always got out near peak. The last time I converted to cash was on April 20th this year. Go look.

Now I'm just watching the market closely for re-entry. If I miss out on few days of rise, no big deal. But I feel good holding the entire 529 account in cash. I've done this often. Yes timing the market. But I guess it's frowned upon here.

Got zilch to do w/the masses. 90% of millionaires got there via real estate.

https://thecollegeinvestor.com/11300/90-percent-worlds-millionaires-do-this/

Pat yourself on your back for your market timing expertise. But your thoughts on RE indicate you have very little understanding of it.

Are you suggesting I dump cash into RE now???

12thMan9 said:

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HumpitPuryear said:

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But I don't want it tied up in overpriced non-liquid real estate

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90% of millionaires think differently than you.

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I have RE and it's done quite well but that's a long- term investment and I bought when the market was low. I would like to be more liquid in whatever I put my cash into.

HumpitPuryear said:

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12thMan9 said:

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HumpitPuryear said:

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But I don't want it tied up in overpriced non-liquid real estate

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90% of millionaires think differently than you.

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I have RE and it's done quite well but that's a long- term investment and I bought when the market was low. I would like to be more liquid in whatever I put my cash into.

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Same here. I just feel that having available cash provides options to grab when opportunities arise instead of it locked into more difficult to access assets. Sure I have HELOC and I may tap into it.

No intention of day trading and not familiar enough to trade commodities. My RE in CA and TX have done well but the house I bought in VA in 2019, I sold in 2021. And I'm glad I did.

AggieDruggist89 said:

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HumpitPuryear said:

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12thMan9 said:

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HumpitPuryear said:

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But I don't want it tied up in overpriced non-liquid real estate

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90% of millionaires think differently than you.

---

I have RE and it's done quite well but that's a long- term investment and I bought when the market was low. I would like to be more liquid in whatever I put my cash into.

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Same here. I just feel that having available cash provides options to grab when opportunities arise instead of it locked into more difficult to access assets. Sure I have HELOC and I may tap into it.

No intention of day trading and not familiar enough to trade commodities. My RE in CA and TX have done well but the house I bought in VA in 2019, I sold in 2021. And I'm glad I did.

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Agree and the direction of interest rates right now make any financing cost unpredictable much over the horizon. The cost of money is likely going up.

AggieDruggist89 said:

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Are you suggesting I dump cash into RE now???

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I'm suggesting RE makes people money in any market, up or down.

That can be said for stock market too. But how did RE workout for those who got foreclosed and shortsaled during 2007-2012??

TXTransplant said:

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It is that easy. I'm with Fidelity, and I don't even have to click to convert. I just move the funds from my IRA to my Roth and then handle the conversion when I file my taxes.

It's so stupid easy that I don't understand why Congress just doesn't do away with the Roth income limits.

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my personal brokerage is with Fidelity

I can't get the Roth IRA due to income limits and have never had a regular IRA.

I just put pre-tax into my corporate 401K and use after tax funds moving from my bank to Fidelity.

sounds like I am doing something wrong - does a regular IRA take pre-tax money like from your paycheck into the account?

or it is just used when you want to cash out for retirement tax purposes?

LMCane said:

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TXTransplant said:

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It is that easy. I'm with Fidelity, and I don't even have to click to convert. I just move the funds from my IRA to my Roth and then handle the conversion when I file my taxes.

It's so stupid easy that I don't understand why Congress just doesn't do away with the Roth income limits.

---

my personal brokerage is with Fidelity

I can't get the Roth IRA due to income limits and have never had a regular IRA.

I just put pre-tax into my corporate 401K and use after tax funds moving from my bank to Fidelity.

sounds like I am doing something wrong - does a regular IRA take pre-tax money like from your paycheck into the account?

or it is just used when you want to cash out for retirement tax purposes?

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Even though I'm a generation between X and Boomer, Tweener, I act like a millennial and only stay at a job for 2-4 years. That's a lot of 401K and 403B rollovers to IRA accounts. So I play in IRA.... No Roth tho.

LMCane said:

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TXTransplant said:

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It is that easy. I'm with Fidelity, and I don't even have to click to convert. I just move the funds from my IRA to my Roth and then handle the conversion when I file my taxes.

It's so stupid easy that I don't understand why Congress just doesn't do away with the Roth income limits.

---

my personal brokerage is with Fidelity

I can't get the Roth IRA due to income limits and have never had a regular IRA.

I just put pre-tax into my corporate 401K and use after tax funds moving from my bank to Fidelity.

sounds like I am doing something wrong - does a regular IRA take pre-tax money like from your paycheck into the account?

or it is just used when you want to cash out for retirement tax purposes?

---

I did not have a regular IRA until I exceeded the income limits for the Roth. I opened it for the sole purpose of doing the backdoor conversion.

Traditional IRA contributions are pre-tax. I am not eligible for that, though. I make a lump-sum contribution with after tax savings and the immediately move it to the Roth.