Short question: where do i put money once i max out 401k (if not eligible for IRA due to income) backstory: i got caught up with a guy from NW Mutual as a strapping young idiot fresh out of pharmacy school (i know) and yesterday decided i probably dont need the whole life policy they sold me (only in it 7-8 years). was going to cancel and put the money elsewhere, but where? mutual fund? TC: 339k ($219+55k bonus+65k RSU) #personalfinance #investments
Also make sure your whole life policy isn’t fully funded. There comes a point around 7-10 years you stop paying for whole life and you keep it for life. I’d look at back door ira but that’s only 6k and the mega Backdoor, but that’s needs to be approved and done through your employer. Tax shelter ways to invest would be apartment syndications, real estate on your own, and you can always do a taxable account and just invest there.
My financial advisor said life insurance should not be treated as an investment. You should buy it as protection for your spouse or children in the event you die. Term life insurance serves that purpose and is MUCH cheaper. Cancel yours, switch to term life if you need it, and that will free up tons of cash to invest in stocks through other tax advantaged accounts like a backdoor Roth IRA, or just a taxable brokerage account.
Mutual funds or ETF. Keep a diversified portfolio
Don't forget a small dose of bonds
Definitely!
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You can do some in a backdoor Roth IRA. If your company supports a mega backdoor plan, put it there.
This is absurd .. you know Backdoor Roth is transfer right ? He is asking for his annual dumping ground
You sir, are an idiot. He is looking for somewhere to stash money, and I would stash it in tax sheltered accounts before other options. If he thinks he can't use a Roth IRA due to income limits, he is wrong and I wanted to point out his options.