Small background is that I have something like $40k worth of collectible coins and I'm simultaneously losing interest in the hobby and also trying to take my retirement more seriously. Right now I just put 10% into my 401k but I was thinking about opening a Roth IRA and selling a few of my coins to just max it out for the year. I've had apprehensions about the stock market in the past but watching it just go straight up for the past several years I'm ready to just go all in at this point.
I like the roth IRA in particular because I can withdraw the money without penalty if I need to although obviously I would prefer to just leave it in there until retirement age.
Is it ever a bad idea to do a lump sum contribution to a Roth IRA?
byu/Basic_Butterscotch inpersonalfinance
Posted by Basic_Butterscotch
4 Comments
Roth IRA is fine.
What would you otherwise do with the money?
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Sounds like you are asking about a framework for what to do with money.
Start with reviewing the Prime Directive in the PF Wiki. It will answer your question and many other questions you didn’t realize you should be asking.
* https://www.reddit.com//r/personalfinance/wiki/commontopics
If you’re under 50, it doesn’t make sense to hold your money and try to spread it out. Dump it in now and let it ride.
Time in market beats timing the market
I typically contribute the maximum on Jan 1st every year. Time in the market is better than timing the market.