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Hello,
I have a IRA, ROTH IRA and Personal Investing Account. I have approx. 85% of my investment in Dividend Aristocrats, Kings and Champions. The remaining 15% are either in ETF’s or stocks that don’t fit in the Aristocrats/Kings (NVDA, TSLA, GOOGL).
Is it an incorrect approach to use all the accounts to invest in the same type of “portfolio” meaning all three accounts have the same blend of Aristocrats, Kings and Champions and ETF’s?
I am semi retired, I do have fixed income (pension) but also receive income from present job. Will work there a few more years then second pension and ultimately social sec. also.
Have a 401k but no longer contributing to due to retirement from initial job. I do not take anything from investment accounts and dividends are all re-invested.
Was looking at doing a backdoor IRA but not sure if its worth paying the taxes to get the funds into a my ROTH?
Appreciate all input.
D
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Welcome to the forum!
First, if you've settled on a diversified portfolio that works for you, it is fine to repeat it in multiple accounts.
Second, I think Tesla will be going all the way to bankrupt.
Third, the way things are going, you won't have any taxes to pay on that ROTH conversion.
Fourth, best of luck investing in this crazy time.
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My brain is way too fuzzy at this hour, but wanted to second Ken's welcome to the forum! Glad you found us!
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Hello De64. welcome to the forum.
I don't see anything wrong with how you are investing. There are no rules as to how to build your portfolios. You may not want to make them identical depending on your situation. For example, you may want to focus on the higher qualified dividend rate equities in your personal brokerage since qualified dividends are taxed at the capital gains rate. Orrrr ... lean more to low payout or growth stocks in the personal account and just focus on long-term capital gains in that account to minimize taxes and control when the taxable events occur.
Since you're considering a back-door Roth, you are implying that your income is over the limit that prevents direct investment in the Roth. You'll have to be the judge of that. There are several things I would consider besides the tax-free withdrawals/income to you: Roth IRAs have no RMD, withdrawals (especially RMDs) could eventually put you in the IRMAA range, if you aren't already, which would add to the cost of Medicare, and your non-spouse beneficiaries could be forced into a higher tax bracket due to the 10 year withdrawal rule.
Those are just my thoughts. Again, welcome to the forum and hope you'll stick around and join in.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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De64
Welcome to the forum! I also have multiple accounts that for the most part are very close in style--As DW has said it might be beneficial to limit DGI in a regular brokerage account due to taxes, if that's a concern. I do find it easier to manage the different accounts with the same company's across the those accounts.
A backdoor ROTH conversion can be beneficial down the road if you think you'll end up in a much higher tax bracket later on in retirement years, it can lesson the blow and put more money in your pocket or eventual heirs. If doing a conversion I would only do it it you have the money saved up to pay those taxes upfront, in other words, you're not selling any of those converted funds to pay those taxes.
Don't listen to Ken!! TSLA is not going bankrupt.
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Well, that was a wild few days. Yesterday took the sting away for a bit. I'm assuming it might be rocky for a while, good time for continue adds.
There's still a blanket tariff until deals are made country by country, the only tariff to stay put was China. China was the only country that retaliated a certain way, imho, China was the real target all along the rest was a big eff you to everyone basically saying who matters the most?
There's also the tax bill on the floor.
Rocky days for a bit longer.
It's kind of like the Inverse-Cramer rule.