Hi There! I have a 401k through work, a Roth IRA that holds invested mutual funds and I am interested in opening a Vanguard account to invest in a target date index fund. Would the best option be to select a Roth IRA account for the target date index fund or would it be another type of account that would be best? Thanks!
Hi @mrl85!
Thank you for the question! A couple things to consider when making your decision:
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Is the reason for opening up a second Roth IRA because your current one is not through Vanguard? Keep in mind that the max contribution limit is an aggregate number, across Roth IRAs. So, you will need to ensure that you stay below the limit when you total up the contributions across both accounts.
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If you haven’t already, check out the PFC investing checklist below. It provides the order of contributing to different accounts.
Keep us posted with any other questions!