Hi Blinders, Little about me, 24 M techie in Miami, really immature with managing money, looking for advice on investing my IRA and 401k amount for long-term maximum growth. current standing of accounts: IRA: 11k invested in tesla, +20% gains so far 4.7k cash available to trade should I still hold tesla as it is, I invested this last year bcos all my friends were, no logic really. Where should I put 4.7k cash now, or should I wait until we see more drop in the market? 401K: 11.5k in VANG TARGET RET 2060 , -12% so far I really need help here, can you suggest a better long-term investment for this? besides this, I see in my fidelity account that, I have another 6000 contribution limit for my IRA account for 2022, is it a good idea to transfer from my checking account to my IRA and invest in stocks? how is this beneficial when compared to doing the same on robinhood? Any input is much appreciated, looking forward to learning more from all of you. Thank you, #personalfinance #investments #faang #maang #401k #ira #amazon #meta #apple #google #netflix #robinhood
For your investments in IRA, I would sell all of my tesla and DCA the money into index funds or faangts
1) donât touch your 401k leave it invested 2) put the 4K in Roth IRA, advantage of this over robinhood is you will not pay taxes when you withdrawal gains + principle at retirement
What is Roth IRA, how is it different from IRA ? Excuse me if it is a basic question. Thank you so much for your response
Roth IRA/401k -> aftertax money that can be withdrawn tax free (no tax on gains unlike a normal brokerage) Trad IRA/401k -> pretax money that is taxed on withdrawal (this is beneficial for most as retirement income is generally a lower tax bracket than your income right now)
I highly recommend solely buying vanguard target date funds in both your 401k and IRA. They will handle allocating everything for you and youâll never have to worry about choosing the right investments. They have very low fees that are well worth it. If you want to do a bit more research and find a different strategy or learn more about your options, check out /r/personalfinance and /r/bogleheads
Tq
Try getting an investment advisor,
If youâre putting in 401k for year 2022, you can still put 6k in IRA but you cannot deduct it from taxes. So donât do that. And if youâve already done this in previous year(invested in both 401k and ira) then just go to a professional cpa
So 6k contribution to ira account is not tax free and it is Same as investing through Robinhood correct ?
I would suggest you either try to read about it yourself(how ira works) or just hire a cpa, it is not that straightforward to explain in words here to someone with so little knowledge