I am late the game on being smart with my money and trying to just make the best of it and be smart now. We are not wasteful spenders, it's just that I was just a sheep going with the flow, keeping my money in a savings accoun, doing what I saw others do. I wish I had taken the effort to learn about investing. I just listened to "rich dad, poor dad" and it is so true you often wind up following the same financial path as your parents. Thankfully my boss in my 20s told me to contribute to 401k and so I did that without thinking. But now many years later I realized I missed opportunities for compounding in my early years.
Now my company converted us to 1099 and my new accountant opened my eyes to things I wasn't doing. He told me to max out my 401k (even though my company has ZERO match). I just opened an SEP IRA at the recommendation of my accountant as well.
Now looking at it I realize I was a fool to never have opened up a Roth IRA and my combined married income phases me out from doing it now.
And then I learned about backdoor conversions for Roth. But I think now that I just opened up an SEP IRA, I might have ruined that idea too.
So I'm hoping this community can advise on the best path to plan for my future forward.
My current status:
- 401k with current employer, non matching
- Older 401k from previous employer I didn't rollover. This is ripe for doing something with.
- SEP IRA just opened up last year (well this year but accountant took credit for in 2019)
- Small amount in 529 for kids college. Plan has some tax benefit on my NY income.
- Regular taxable brokerage account in robinhood
- Missed the boat on HSA in my youth, plus live in NJ so we lose most of the benefit.
- Have life insurance already (probably didn't do the best on this but not worth changing it now)
So, the main questions are:
1.should I look into a Roth conversion (i think not because of SEP IRA)? 2. what should I do with my old 401k? 3. What am I missing on maximizing my money intelligence?
Submitted October 02, 2020 at 09:36PM by Finding-Internal https://ift.tt/3cU8dRm
