Opinions and suggestions needed.........
I'm 51 yrld, per IRS I can contribute $8,000 this year in my RothIRA.
I have way more than that in my credit union money market account earning pennies in interest. So I'm not worried about depleting my emergency fund which is what the money market account is for.
I'm thinking about dumping the amount to fulfill this years contribution requirements from my money market account and slowly putting funds back into my money market account throughout the year at $650 per month which is what I'm contributing now to RothIRA.
I figure I get a better deal on the ETF (cost of a share is lower now) I fund in my RothIRA now versus funding it monthly throughout the year as the cost of the ETF continues to rise.
Basically dump a lump sum to get the ETF at a lower rate, this of course assumes cost of the ETF continues to rise from now till December 31st. What I will earn in the ETF will be more than interest on the same amount sitting in a money market acct.
What say you?
Similar situation
@doe moe
So what I did for about 20 years with my RRSP (registered retirement savings acct) was 90% medium risk, 10% high risk mutual funds. Definitely had its ups and downs over the years - tech, agricultural, science-related stuff. When things went haywire during the pandemic, I waited for stuff to recover back to where it was almost at, then withdrew it to be more careful.
I eventually moved stuff over to lower risk GIC(s) in recent years.
I have maxed out my TFSA account since its inception. I believe that (tax-free savings account) started around 2009 or 2010. This year the max contribution room was $7000. You can put that anywhere you like savings or investment-wise. It's totally up to you.
I have maxed out my RRSP as much as possible over the years to lower taxable income. Unfortunately the contribution room is minimal as your income grows annually, and of course is lowered by your pension plan contributions.
I have been taking advantage of the savings promos that banks have been doing though. So if I have money just sitting around that I haven't invested, I'll moved it over somewhere else to collect 5.25 - 6% while it sits idly and I wait to make my move and invest it more fully elsewhere. I was able to get 6% for an assortment of stuff.
Mostly have done 1 - 1.5 year GICs of late ... back in the day they were often 3 - 5 year investments, which you definitely had to be more patient with.
I had $50k mature on April 20th, and another 100k maturing this Saturday. I will re-invest that stuff ... I think probably just in a 6-month GIC, as I have some larger stuff maturing next year and I don't want to have too much taxable investment income all come due in the spring of next year. Minus whale have some of it mature this fall, then the rest of the stuff from January - April of 2025.
