Originally Posted by
Lenticularis
Now that I have some money to invest I am wondering what advice experienced guys/gals do? I currently max 401k that is under the PRAP and diversified it to 50 conservative and 50% large cap, small cap mix. I am considering a financial planner outside of Schwab and have the insight of 2 meetings so far but I'm not sold. I have saved a bunch that's just sitting in a high yield savings. I have no substantial IRA. Very low debt and a easy cost of living, wife and I don't buy or want lots of unnecessary things. So what do you do with all the money? Hire someone to manage? Does Schwab manage portfolios like a financial planner? If so are people happy with the results? More background info I have no interest in closely surveying and management of my portfolio but I feel I've done well to this point with a hands off approach. I also have about 20 years left to work. I'm also curious if people have and use tax advisors? I've always done TurboTax as my taxes are simple but feel Ike I'm missing out on ways to better keep the money out of Govmnts pocket.
1. Max out your 401k
2. Max out your Roth 401k
2b. Company + your total 401k limit is 66,000 (2023) and 69,000 (2024), get there asap
2c. Yearly spillage goes to RHA; recommend finding your “magic number”, then spilling to MBCBP when able
3. While doing the 401k, max the IRA, either direct Roth or Traditional then Roth conversion
3b. IRA limits are 6500 (2023) and 7000 (2024) per person, you can do an IRA for your wife
Doing the above will tax shelter minimum $79,000 in 2023 and 83,000 in 2024, plus spillage, plus if you’re over 50 add 7500 to the 401k and 1000 to each IRA. Invest in a 80/20 stock/bond mix, balance frequently, retire incredibly comfortably. Boom.