BACKDOOR ROTH investing the 6k

Investing
#1

Hi Jeremy,

I understand how to do the backdoor roth but my question is once I move the 6k from traditional Ira to the Roth. Do I need to invest the 6k right away or am I able to invest $500 each month (Jan 2021-dec 2021)?
Thank you for your help!

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#2

Hi,
Just following up on this.

Thanks

#3

Hm… are you asking if you can just hold cash in your Roth IRA? Yes, of course you can. I’m not sure why you WOULD though. Generally, I never keep cash in an IRA as the point of an IRA is that it’s meant to grow. Cash just sits there.

If you’re trying to dollar cost average to avoid a market crash, that’s OK, but historically you’re actually better off investing it ASAP.

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