I'm 29 with no debt, just got a new job (135k in a high cost area) and realize now is a good time to solidify my investment strategy for the future. Currently I don't have many expenses so I want to invest/save as much that makes sense.
My current "holdings":
- $100k in savings/checking.
- $66k thrift plan from previous employer. I have a few weeks to decide what I want to do with this money (rollover, payments, etc.)
- $13k in a Roth IRA. Ive only maxed my contribution to this twice in 5+ years which I now regret as I am just over the contribution limit.
- $0 in new 401(k) for my new job. I will make sure this maxes out every year.
My first priority as it's time sensitive is dealing with the thrift plan, any suggestions?:
- Receive small monthly payments or a taxed lump sum (I don't care for these options)
- Direct rollover to 401(k)
- Direct rollover to a traditional IRA which I have NOT yet opened and don't know if I will.
- Payout/rollover to my Roth IRA. I believe 20% is withheld for income tax. Makes next tax season slightly more complicated.
Since I can't really contribute to my Roth anymore (other than a rollover) should I just open a separate traditional IRA and max that out every year? Or just consolidate to the 401(k)? Any tips are appreciated. As a side note I'm currently reading Bogleheads and looking to start slowly investing my liquid assets over time so they aren't sitting.
Submitted June 14, 2017 at 10:52PM by financeslumber http://ift.tt/2ryiFEL
