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Help In Allocating A Just-Funded BackDoor Roth IRA
Posted: Sat Jun 30, 2012 1:02 pm
by Reub
I just set up and funded a backdoor Roth IRA with a nice amount of change in it. I already have all of my other assets in a PP consisting of cash in my federal TSP fund, stocks in taxable assets, TLT in a regular non-deductible IRA and some EDV in taxable assets. My gold allocation is also in taxable. I also have 10% in PRPFX with 10% EDV as an adjunct to it. Right now my cash has the most funding, with stocks next, and LTT third. My gold is about 20% and is my least held asset. I have very little physical gold.
I will be retiring this month with a decent pension but would still like to draw about 3% from my assets per annum.
Any ideas on how to incorporate this new Roth money into my existing PP?
Thanks!
Re: Help In Allocating A Just-Funded BackDoor Roth IRA
Posted: Sat Jun 30, 2012 1:31 pm
by jackely
Reub wrote:
I just set up and funded a backdoor Roth IRA with a nice amount of change in it. I already have all of my other assets in a PP consisting of cash in my federal TSP fund, stocks in taxable assets, TLT in a regular non-deductible IRA and some EDV in taxable assets. My gold allocation is also in taxable. I also have 10% in PRPFX with 10% EDV as an adjunct to it. Right now my cash has the most funding, with stocks next, and LTT third. My gold is about 20% and is my least held asset. I have very little physical gold.
I will be retiring this month with a decent pension but would still like to draw about 3% from my assets per annum.
Any ideas on how to incorporate this new Roth money into my existing PP?
Thanks!
I'm retirement age too, though not retired. I was never able to have a Roth IRA until lately due to income restrictions but since they changed the rules I've opened up accounts for me and my 17-years-younger wife. Pay absolutely no attention to my strategy as I think it flies in the face of most of the advice you will get here but I funded both accounts 100% with gold and I work the rest of the PP that I have control over around it. My thinking: if you assume you are still alive in 20-30 years which of the 4 sectors would you want to bet on doing well, especially if it's completely non-taxable money?
P.S. - what is a "backdoor Roth IRA"?
Re: Help In Allocating A Just-Funded BackDoor Roth IRA
Posted: Sun Jul 01, 2012 12:35 am
by Reub
By "backdoor" Roth IRA I mean that I was able to fund what is called a Voluntary Contribution Plan at work with already taxed dollars and then roll it all into a Roth IRA before retiring. This "best-kept secret" of the federal retirement plan is only available to CSRS employees such as myself who are diminishing in number quickly.
Re: Help In Allocating A Just-Funded BackDoor Roth IRA
Posted: Sun Jul 01, 2012 6:37 am
by BearBones
Reub wrote:
By "backdoor" Roth IRA I mean that I was able to fund what is called a Voluntary Contribution Plan at work with already taxed dollars and then roll it all into a Roth IRA before retiring. This "best-kept secret" of the federal retirement plan is only available to CSRS employees such as myself who are diminishing in number quickly.
Not just a federal benefit, as I understand it. For the past 3-4 years there have been no income limitations on contributions to non-deductible IRAs. Therefore, one can make a contribution to IRA (after tax) and immediately roll into Roth. This is what I have heard called a backdoor Roth.