What should I do after I've maxed-out my Roth IRA contribution for the year?

I started a Roth IRA last summer when I started a high-paying (for the area I live in) internship. I'm 26 years old, I'll be finishing college next semester, and as of a few months ago, I've been converted to full-time at the company with a starting salary of $63,000. I expect to max out my Roth contribution in the next few months. The company offers a 401(k), but they don't offer a match. Are there any rules against opening another Roth account somewhere, or is there a more advisable approach for someone with my risk tolerance (fairly high) and time horizon (fairly long)?

Career / Compensation, Personal Finance, IRAs
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June 2017
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Congrats on all your success and saving and investing discipline. 

The Roth is a savings vehicle within which you can invest in most anything, including long-term growth potential investments that you are wisely looking at. One of your greatest assets is your long-time horizon and the magical compounding that goes along with it.

You can have as many Roth accounts, with as many firms, as you wish but your yearly contribution limit applies to all the accounts as if they were one. So, if your limit is $5,500 and you have 10 Roth accounts and you want to contribute to all 10 equally, you could $550 to each account. Or you could do $2,750 to two.

Assuming you have your emergency fund set, little or no debt, and you do have a high-risk tolerance then look at global equities of all company sizes for inside your Roth. They are volatile but the tradeoff is the high-growth potential and ability to grow beyond inflation.

Inflation is arguably your greatest threat and ally over the next 40 years. Generally speaking, your job and equities are often the best investments to take advantage of inflation.

Other FYIs:

  • The Roth can be used as an emergency fund (contributions can be accessed but should not invest in the volatile assets mentioned above)
  • I-Bonds are a great secure inflation hedge, backed by the US gov and after one-year you have safety of principal
  • Tips are inflation-adjusted bonds issued by the US gov, just be careful of how you buy them and taxes (they are not as simple as I-Bonds)

Lastly, if you have the cash flow and emergency fund you can look an HSA to save for retirement. The penalty for non-qualified withdrawals is steep, so make sure you plan things out with regards to paying for healthcare.

Here are two articles I wrote last year that might help:

HSA Article From AJC

Roth/ 529 Article From NASDAQ

Good Luck!

Mark Struthers CFA, CFP®


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This is for informational purposes only. Your specific situation would need to be taken into account. All information is subject to change. Not to be considered investment, tax, or legal advice.

June 2017
June 2017
June 2017
June 2017