I have money in a brokerage account at Vanguard (VFIFX). Should I move $$ out of this account and put it in my Roth IRA to max out the Roth IRA contribution for this year?
Hey Alice, if you withdraw the money from your brokerage account to fund your Roth IRA, you’ll owe taxes on your capital gains. It’s probably best to keep your money invested in the brokerage account and try to fund your Roth IRA with other resources. The key to long term wealth is buying and holding, and not moving your money around constantly and changing your strategy (we’re all guilty of this, especially me!).
So I would probably recommend no, but Jeremy a/o @vivitron might think otherwise
Moving forward you’ll want to try to prioritize your investing in this order from @Jeremy : https://www.personalfinanceclub.com/the-ultimate-investing-checklist/
I partially agree with @thberry10 that it’s best to fund your IRA with already taxed money (like from your income) but if you don’t have that available, I actually have no problem with selling some from your brokerage account to move the money into your IRA. The tax will eventually be due on those gains in the brokerage account, so if you can pay it now, them move it to a “never taxed again” status, that’s definitely a good move!
The boss has spoken haha 