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Hey guys. I recently got a new job that looks like it may put me into the realm of making to much to fully contribute to a Roth. If this is the case, is there really much disadvantage to holding the money in a money market mutual fund and then making a lump sum contribution of what I am allowed to put into the Roth in April when I do my taxes?
I know it is all one lump sum, but is it still somewhat dollar cost averaging since I will be doing it every year, right? I do put in 10% of my salary to my 401k which is invested every two weeks when I get paid.
This way I can avoid putting in too much or having to re-characterize as I think I would rather invest in a low cost index fund that is taxable then to put money into a non-deductible IRA. Or is that what I should be doing? Thanks for any input.
I know it is all one lump sum, but is it still somewhat dollar cost averaging since I will be doing it every year, right? I do put in 10% of my salary to my 401k which is invested every two weeks when I get paid.
This way I can avoid putting in too much or having to re-characterize as I think I would rather invest in a low cost index fund that is taxable then to put money into a non-deductible IRA. Or is that what I should be doing? Thanks for any input.
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