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Post by chang on Jun 17, 2023 17:15:13 GMT
It looks like I’m about to come out of retirement and rejoin the workforce. I calculate that I can make a full contribution to my Roth IRA for 2023.
My Roth is 100% LCG (FBGRX), but I also have two T-IRAs. For simplicity, I can just add $7500 to FBGRX in the Roth, but … if LCG is a bit toppy at the moment, I could also sell some FBGRX in my T-IRA (yes, I hold some there as well) and add to another position there. Maybe utilities FSUTX?… which is currently my smallest position in the account.
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Post by yogibearbull on Jun 17, 2023 17:18:46 GMT
There are recommendations to keep income in T-IRA, but growth in taxable and R-IRA.
You may not qualify for deductions for T-IRA and nondeductible T-IRA contributions (unless for Backdoor R-IRA) may lead to complications later.
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Post by chang on Jun 17, 2023 18:11:13 GMT
I will check again but I don’t think I will qualify for a *deductible* T-IRA contribution. But I would always fund the Roth first, if I can. For many years I couldn’t, and in 2024 I probably won’t be able to.
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Post by chang on Jun 18, 2023 10:20:04 GMT
Based on a January 2023 Morningstar report: “Utilities Primed for Growth in 2023 With a strong capital pipeline, increasing regulatory support, and corrected valuations that remain historically rich, utilities are poised to return to steady growth without volatility.” “Why are utilities primed to thrive? The report outlines why Morningstar believes the growth opportunities for utilities are better now than the sector has seen in more than 30 years, and several of these reasons are evident to most Americans. Energy costs, power reliability, and environmental measures are receiving greater attention in Washington, D.C. and in many states than they have since perhaps the early 1970s. Growing pressures to advance the technologies in cleaner and renewable energy sources are spurring greater investment. Additionally, escalating tensions with Russia, China and other geo-political entities are emphasizing just how vital the resilience of the electrical grid infrastructure is to U.S. national security. And evolving ESG standards are compelling more corporations to reduce carbon emissions.” www.institutionalinvestor.com/article/b8xvhggpgp3wh4/Utilities-Primed-for-Growth-in-2023FSUTX dividend yield is lower than I would have expected. But maybe that’s OK; my IRAs are invested for growth, not income. With other, riskier assets in the IRA, maybe I should add to the FSUTX position. |
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Post by Chahta on Jun 20, 2023 13:37:37 GMT
It looks like I’m about to come out of retirement and rejoin the workforce. I calculate that I can make a full contribution to my Roth IRA for 2023. My Roth is 100% LCG (FBGRX), but I also have two T-IRAs. For simplicity, I can just add $7500 to FBGRX in the Roth, but … if LCG is a bit toppy at the moment, I could also sell some FBGRX in my T-IRA (yes, I hold some there as well) and add to another position there. Maybe utilities FSUTX?… which is currently my smallest position in the account. You are going to make a whole $7500 net in the next 6 months?  |
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Post by chang on Jun 20, 2023 13:39:47 GMT
The issue is that Roths and deductible T-IRAs have maximum income limits. You can make a full contribute to a Roth only if your AGI is < $138,000 / 218,000 (single / married filing jointly).Link |
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Post by Fearchar on Jun 20, 2023 16:04:39 GMT
The issue is that Roths and deductible T-IRAs have maximum income limits. You can make a full contribute to a Roth only if your AGI is < $138,000 / 218,000 (single / married filing jointly).LinkHopefully, they offer you a qualified 401K plan. Being over age 55 one is able to deduct 30k per year from income. From there, 45K/year before tax... AKA mega Roth. So, that should help. Of course, if you're single then yeah! |
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Post by Chahta on Jun 21, 2023 0:05:13 GMT
It looks like I’m about to come out of retirement and rejoin the workforce. I calculate that I can make a full contribution to my Roth IRA for 2023. My Roth is 100% LCG (FBGRX), but I also have two T-IRAs. For simplicity, I can just add $7500 to FBGRX in the Roth, but … if LCG is a bit toppy at the moment, I could also sell some FBGRX in my T-IRA (yes, I hold some there as well) and add to another position there. Maybe utilities FSUTX?… which is currently my smallest position in the account. I am curious. Are you bored or is the money too good to turn down? |
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Post by chang on Jun 21, 2023 6:46:38 GMT
It looks like I’m about to come out of retirement and rejoin the workforce. I calculate that I can make a full contribution to my Roth IRA for 2023. My Roth is 100% LCG (FBGRX), but I also have two T-IRAs. For simplicity, I can just add $7500 to FBGRX in the Roth, but … if LCG is a bit toppy at the moment, I could also sell some FBGRX in my T-IRA (yes, I hold some there as well) and add to another position there. Maybe utilities FSUTX?… which is currently my smallest position in the account. I am curious. Are you bored or is the money too good to turn down? Neither, really. At the risk of sounding trite, it's a great opportunity that surfaced, for me to get back into my industry for a few more years, work with old friends and colleagues, travel, have fun, and ... make a little extra money. |
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Post by judger on Jun 21, 2023 15:49:10 GMT
It looks like I’m about to come out of retirement and rejoin the workforce. I calculate that I can make a full contribution to my Roth IRA for 2023. My Roth is 100% LCG (FBGRX), but I also have two T-IRAs. For simplicity, I can just add $7500 to FBGRX in the Roth, but … if LCG is a bit toppy at the moment, I could also sell some FBGRX in my T-IRA (yes, I hold some there as well) and add to another position there. Maybe utilities FSUTX?… which is currently my smallest position in the account. Why so taken by FBGRX? I went way overboard on it and still have a big chunk with a loss of about 13.5% still waiting for recovery so I can sell some. It did NOT do well the last 2 years until the last few months! :-((( |
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Post by chang on Jun 21, 2023 16:16:57 GMT
judger: Well, all LCG funds are pretty similar. FBGRX being a Fido fund is easy to trade or exchange in a Fido IRA. Also its returns are above average within the LCG category: www.morningstar.com/funds/xnas/fbgrx/performanceIf you’re asking “why LCG?” in my IRA … well, I prefer to use my taxable acct for income generation, and my IRAs for growth. I also prefer to keep more aggressive assets in the IRAs, where volatility is easier to stomach (since I don’t plan to tap those funds for a long time).
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Post by johntaylor on Jun 24, 2023 13:42:36 GMT
There is an argument that a Roth should contain your most aggressive growth
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