Just finished the PFC course and feel much more comfortable with all these topics! That said, I do have a couple questions that I’d like guidance on.
Details: 40 years old, 300k/year gross income, paid off primary residence, no personal debt, 403b maxed out at $20.5k per year, HSA maxed out at $3650 per year (and invested in a Vanguard TDF), ineligible for roth IRA (but contributions to that when I was eligible are sitting in a Vanguard IRA target date fund), and contributing an additional 2k/month in taxable account.
- after I hit the pretax limit of 20.5k for my 403b, those contributions stop and the brokerage (Fidelity) that my 403b is with starts pulling aftertax contributions up to my employer match. My question is, is this totally fine? Or am I better served by lowering my contribution per pay period to spread the 20.5k out over the entire year (with my current contribution rate, I hit the max in July)?
I guess where I am confused is I don’t know if it’s optimal just to spread 20.5k out over 1 year with match…the after tax contributions including employer match would functionally be the same as if I invested in a taxable account TDF right? So it’s 6 one way, half a dozen the other? Or am I missing something? Very confused on this issue!
What should I invest in for my taxable account? I started my taxable account before I even heard about PFC…so I was even more ignorant than I am today. So far 100% of my contributions are in VTSAX. Would it be a bad idea to just dump everything in my taxable account in another TDF versus reallocating into a 3 fund portfolio? I guess my question is, I’m kind of lazy and ignorant about the finance world, so I’m looking for information on if going all in on TDFs would expose me to a significantly larger tax bill than 3 fund portfolio.
backdoor roth IRA…is this worth it?
In closing, I’d like to thank the PFC team for creating such a great educational tool. Nobody teaches this to us in school, which I think is crazy now that I’ve taken your course. And thanks for your time considering my questions.