A taxable brokerage accoubt has lower taxes on withdraws than actraditional IRA. However a traditional IRA offers asset protection in a lawsuit. Basi c ally do the backdoor roth first then taxable.

Anonymous wrote:If you make over $300K, after you’ve maxed out your 401k - where do you invest? We do not qualify for a Roth IRA.

Is there any benefit to doing a traditional IRA next? We may also make too much to qualify for any tax benefits with a traditional IRA.

With our income, is there any difference between investing in a traditional IRA and a taxable brokerage account?

Thanks!

1) Max out 401k using backdoor Roth. $66,000 in 2023. All our contributions are Roth and convert employee contribution as they come in. Goal is 50/50 mix traditional/Roth at retirement.

We don’t use an IRA vehicle. Maxing to 415(c) limits is enough for retirement.

2) $3000 a month to a brokerage account split 50/25/25 money market/SCHB/SCHD

3) $900 a month for 3 kids 529.

401k
HSA
529s
Backdoor roths

My company offers a Roth 401k. I max that.
I participate in my company’s stock purchase plan - $15k per year.
We have low cost Vanguard funds.

Anonymous wrote:

Anonymous wrote:529 also

Fair point - we have 529s already - maybe I could fund those more when I max out on 401K, at least in 2024 and then reassess.

To be clear - my husband is also saving from his paycheck for retirement - the 529 is ok for me because I don’t necessarily need more money going to retirement but I didn’t want to “free spend” what I had been putting to the 401k (10% of each paycheck), after I max it out.

HSA to cover medical expenses during retirement
index fund
Venturing into I bonds this year as extra education savings with a retirement option.

Anonymous wrote:529 also

Fair point - we have 529s already - maybe I could fund those more when I max out on 401K, at least in 2024 and then reassess.

529 also

Traditional brokerage accounts in various banks.

HSA
Backdoor Roth IRA
After-tax 401k (my employer's plan allows me to auto-convert these contributions to Roth). This is a big one since $69k is this year's total 401k contribution limit.
Brokerage account (a small mix of mostly index and low-fee growth funds)

Anonymous wrote:

Anonymous wrote:Backdoor Roths
Index funds in a brokerage account
Ibonds

Pretty much this.

+2

Anonymous wrote:Backdoor Roths
Index funds in a brokerage account
Ibonds

Pretty much this.

HSA
Backdoor Roth

Backdoor Roths
Index funds in a brokerage account
Ibonds

If you make over $300K, after you’ve maxed out your 401k - where do you invest? We do not qualify for a Roth IRA.

Is there any benefit to doing a traditional IRA next? We may also make too much to qualify for any tax benefits with a traditional IRA.

With our income, is there any difference between investing in a traditional IRA and a taxable brokerage account?

Thanks!